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, Qalubiya, Alexandria, Suez, the Red Sea, and Port Said.
Petroleum Minister Tarek El-Molla and Industry Minister Nevine Gamea both attended the event.
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.
Source: Al-Ahram Online
