TAQA Arabia announced in a press release that it has reached an agreement with the Egyptian Gulf Bank (EGB) over financing the project connecting household units and businesses to the national gas grid.

The agreement was made in cooperation with the Egyptian government, and is worth EGP 700m.

The agreement includes covering the cost of installation and delivery to the citizens provided that they repay the amount in installments for periods extending up to 7 years.

The average cost of delivery of gas per apartment is EGP 1,500, compared to EGP 25,000 for commercial customers.

Pakinam Kafafy, CEO of Taqa, said that her company plans to connect more than a million customers by the end of this year – homes, factories and business – in about 11 provinces. The current number stands at 450,000 customers.

She insisted that the increase in gas supply in the coming years will reflect directly on the company by increasing the delivery processes, including raising the total quantities being supplied and delivered to homes and factories, to reach about 6 bcm per year.

She added that Taqa had recently signed contracts with EGAS to deliver gas to about 330,000 clients, both homes and businesses.

For his part Dr. Sherif Farouk, head of Accounts and Deposits at the EGB, added that with the signing of the agreement the bank can cover the delivery costs for the 450,000 clients to the tune of EGP700m. “Participating in projects that directly benefit the Egyptian citizen is one of the most important priorities of EGB, serving the development goals and the economic policies of Egypt. We are on verge of concluding more agreements that will benefit consumers directly and on so many levels,” concluded Farouk.