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Wednesday, 10 March 2021

It’s go time

Vehicle owners in seven governorates can begin swapping out their old cars for natural gas or dual fuel vehicles before the month is out, with the government planning to launch its ambitious multi-year natgas conversion plan before April, according to a statement. The first phase of the program will cover Cairo, Giza, Qalyubia, Alexandria, Suez, Port Said, and the Red Sea governorates. This phase is expected to see 250k old cars taken off the road and outfitted with new engines by the end of 2023, Trade and Industry Minister Nevine Gamea previously said.

Some 80k individuals had already registered for the scheme as of February, Cabinet spokesperson Nader Saad previously said Ala Mas’ouleety’s Ahmed Moussa.

Background: The Sisi administration announced last year the multi-year plan to convert or replace 1.8 mn cars to run on dual-fuel engines, which is expected to cost EGP 320 bn at the program’s completion. The program provides EGP 1.2 bn-worth of subsidized loans through the Central Bank of Egypt, Trade and Industry Ministry, and MSME Development Agency. The Madbouly Cabinet also signed off on other incentives that will see private vehicle owners get up to 10% off of the cost of a new vehicle — with the ceiling set at EGP 22k — while taxi and microbus owners will be able to get 20% and 45% off, up to a maximum of 45k and 65k, respectively.

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