Egypt signs $500 mln World Bank gas loan

Egypt has signed a $500 million loan with the World Bank to provide natural gas to Egyptian households, the government said in a statement on Thursday.

The loan will help fund a Petroleum Ministry plan to connect 850,000 Egyptians, particularly in largely rural Upper Egypt, to a natural gas grid, Minister of International Cooperation Najla Ahwani said in the statement.

Egypt will pay back the World Bank loan over 30 years, with a five-year grace period.

The country is experiencing its worst energy crisis in decades, due to declining gas production, rising consumption and generous power subsidies.