CAIRO : Minister of Planning and International Cooperation Ashraf al-Araby said there is a large gap between production and consumption of energy, emphasizing the need to ration energy in the coming period.
The remarks were made by Araby following his signing of an agreement with Director General of the Kuwaiti Fund for Arab Economic Development (KFAED) Abdel Wahab Al-Badr. Under the agreement, KFAED will grant Egypt a loan worth 30 million Kuwait dinars (U.S. $106 million) to finance the construction of a 650-megawatt power station in Al-Walidiya village in Assiut.
The minister said there is a clear defect in the energy pricing system, noting that energy subsidies go to the rich who do not need it.
He pointed out that a study is currently underway to control the energy pricing system and that it will be declared in detail in the coming period.
Araby also said the economic situation in Egypt is a very difficult one, adding that the rich should shoulder a reform that would be introduced to subsidies system in the coming phase.
He also pointed out that the government prioritizes establishing investments in new and renewable ene