21/12/2020

GASTEC and MSME sign a new tranche of the L.E. 10 million financing contract for converting vehicles to run with CNG

In the context of the continuation of the fruitful cooperation between GASTEC and MSME to encourage the conversion of vehicles to run with CNG, Eng./ AbdelFattah Farhat, GASTEC’s Chairman, signed the fourth tranche of the sixth phase financing contract for converting vehicles to work with dual fuels (CNG / gasoline) with Micro, Small and Medium Enterprises Development Agency (MSME), with a value of L.E.10 million.

The signing of the financing contract comes within the framework of the initiative of the President of the Republic, which aims to expand the use of CNG as an alternative fuel in various types of cars and vehicles, due to the economics and high operating efficiency of CNG, and the great savings achieved by the use of gas for the citizen in his/her car, as well as its preservation of the environment.

The cooperation between GASTEC and MSME for converting vehicles to run with CNG will contribute to diversifying the sources of financing the process of converting vehicles to run with CNG in accordance with the instructions of the Ministry of Petroleum by expanding the use of CNG as an alternative fuel in various types of vehicles, and facilitating the citizens to pay the cost of the conversion.

This new financing phase from MSME aims to convert about 1250 vehicles to run with CNG, which allows providing a large number of job opportunities in various governorates of the Republic. As this stage is the fourth financing tranche of the total financing contract for the sixth stage, which amounts to L.E. 40 million, at a value of L.E. 10 million for each tranche, and aims to convert a total of 5,000 vehicles.

Coordination is underway between the Company and MSME to sign the seventh phase contract, which is planned to be signed in January 2021, in light of the presidential directives to expand the use of CNG vehicles in a manner that contributes to a strong positive economic return on the citizens and the Egyptian state.

It should be noted that during the previous years, GASTEC has cooperated with MSME by providing the device with soft loans for car owners to convert them to run with CNG with the lowest interest and the longest repayment period. This is an area where natural gas is an economic, safe, clean and available fuel, and the state is counting on expanding its use to advance economic development and reduce dependence on importing liquid fuels.