Egyptian President Abdel-Fattah El-Sisi ratified a $500m loan agreement with the World Bank to fund the expansion of the national natural gas grid, where 1.5m households will be added to the grid.

The initial agreement between Cairo and the World Bank was signed in September of 2014. By connecting new households to the country’s natural gas grid system, Egypt aims to save $301.5m annually in fuel subsidies.

Some 75 percent of Egyptian households rely on subsidized, traditional gas cylinders which officially cost EGP8, according to the World Bank, but are sold for much higher prices.

The World Bank currently runs 26 projects in Egypt at a value of $5.4 billion.

Source: Ahram Online