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Wednesday, 23 June 2021

In Photos: Egypt's PM hands keys of new cars to first batch of beneficiaries from vehicle replacement program

The presidential initiative launched in July encourages the replacement of rickety cars that are more than 20 years old with new ones running on natural gas

Ahram Online , Monday 5 Apr 2021
scrappage initiative
Prime Minister Mostafa Madbouly hands car keys to customers of the presidential scrappage initiative. Photo courtesy of the Cabinet.
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Prime Minister Mostafa Madbouly handed on Sunday car keys to the first batch of beneficiaries who applied for a replacement to their old vehicles under a presidential scrappage program

The presidential initiative launched in July encourages the replacement of rickety cars that are more than 20 years old with new ones running on natural gas through long-term loans with low interest rates.

The initiative is so far optional for private car owners and obligatory for owners of taxis and microbuses.

Minister of Finance Mohamed Maait on Sunday said the initiative has contacted more than 30,000 potential beneficiaries who met the requirements of the initiative as part of the program’s first phase, a cabinet statement read.

This phase includes the seven governorates of Cairo, Giza, Qalioubiya, Alexandria, Suez, the Red Sea, and Port Said.

Maait said the number of those who have submitted requests to replace their old vehicles in the first phase has totaled around 68,000.

Conditions to join the initiative include that the beneficiary’s age ranges between 21 and 65, has a valid driving license, and that the rickety vehicle be more than 20 years old.

Petroleum Minister Tarek El-Molla and Industry Minister Nevine Gamea both attended the event.

Scrappage initiative
Prime Minister Mostafa Madbouly hands car keys to customers of the presidential scrappage initiative. Photo courtesy of the Cabinet.

Madbouly said the government will offer each of the vehicle owners who joined the initiative a 10-percent green incentive from the total cost of the vehicle with a maximum of EGP 22,000 for private cars.

The government will also offer a 20-percent green incentive from the total cost of taxi cars with a maximum of EGP 45,000 and a 25-percent incentive for microbuses with a maximum of EGP 65,000.

Beneficiaries can choose between seven car models and 21 car classes and purchase the vehicle through one of 31 banks working in Egypt, Maait said.

The PM said the presidential initiative will contribute to easing the burden on the citizens’ shoulders through facilitating their purchase of new vehicles instead of the old ones that require frequent repairing.

This is in addition to the money they would save as a result of reducing the consumption of gasoline and using natural gas instead, Madbouly said.

The PM said the initiative also contributes to reducing harmful emissions polluting the environment.

It will also help ease traffic by making sure to replace rickety cars that frequently break down in streets, causing congestion, Madbouly added.

Scrappage initiative
Prime Minister Mostafa Madbouly hands car keys to customers of the presidential scrappage initiative. Photo courtesy of the Cabinet.

Gamea said the first phase of the initiative relies on local automobile manufacturers. She added that the state has discussed the initiative with all companies locally producing vehicles to take part in the program.

The state also communicated with clients of international companies in the automobile field in Egypt, Gamea said.

This is to attract further investments and to transfer the technology of manufacturing vehicles running on natural gas, she added.

In January, President Abdel-Fattah El-Sisi inaugurated the country’s first vehicle fuel system conversion exhibition, dubbed ‘Go Green’, showcasing technologies for converting vehicles to run on natural gas.

Scrappage initiative
Petroleum Minister Tarek El-Molla, Industry Minister Nevine Gamea and Finance Minister Mohamed Maait attended the event.

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