(MENAFN - Kuwait News Agency (KUNA)) Kuwait Fund for Arab Economic Development (KFAED) and Egypt's Ministry of Planning and International Cooperation have signed a KD 17 million loan to finance "Phase Two" of a project aimsedat expanding the natural gas distribution network in many Egyptian governorates.
Head of KFAED mission, legal advisor Nawaf Al-Muhmil and Undersecretary of the Egyptian planning ministry Mohammad Hamman have signed the loan.
After signing the loan, Al-Muhmil told KUNA on Wednesday that the project is intended to provide all necessary equipment and preparations to set up a network to deliver natural gas to more than 500,000 consumers.
Phase One of the project targeted 300,000 consumers, the Kuwaiti official pointed out. He added that Phase Two will encompass around 200,000 consumers, mainly in Cairo and Giza.
This project takes top priority for Egypt since it can contribute greatly in lowering the dependency on liquefied petroleum gas which is a main source of pollution in the country.
Al-Muhmil clarified that this loan has an annual interest of 2.5 percent. An additional 0.5 percent is added every year to cover costs of official paper work and expenses of other services. The loan should be paid off in 21 years.
Kuwait Fund for Arab and Development had given a KD 20 million to finance Phase One of the project.