By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Egypt to issue new bonds for climate, social goals
    Egypt to issue new bonds for climate, social goals
    September 27, 2023
    Saudi Public Investment Fund eyes stake in Palm Hills Development
    Saudi Public Investment Fund eyes stake in Palm Hills Development
    September 27, 2023
    UNDP, MBRF launch online learning initiative for Arab countries
    UNDP, MBRF launch online learning initiative for Arab countries
    September 27, 2023
    Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services
    Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services
    September 27, 2023
    GAFI to grant 45 more golden licences to boost investment
    GAFI to grant 45 more golden licences to boost investment
    September 27, 2023
  • Politics
    PoliticsShow More
    Egypt’s Irrigation Minister highlights climate challenges for water sector
    Egypt’s Irrigation Minister highlights climate challenges for water sector
    September 27, 2023
    CCCPA, Senghor University join forces for African peace, development
    CCCPA, Senghor University join forces for African peace, development
    September 27, 2023
    Arab League chief urges more funding, investment for food security
    Arab League chief urges more funding, investment for food security
    September 27, 2023
    Egypt denounces Houthi attack on Bahraini forces in Saudi Arabia
    Egypt denounces Houthi attack on Bahraini forces in Saudi Arabia
    September 27, 2023
    vPalestine urges international action to end Israeli occupation, crimes
    Palestine urges international action to end Israeli occupation, crimes
    September 26, 2023
  • Interviews
    InterviewsShow More
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    September 18, 2023
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    September 14, 2023
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    September 12, 2023
    India welcomes Egypt's BRICS membership: Boosting trade, investment, and access to strategic commodities
    India welcomes Egypt’s BRICS membership: Boosting trade, investment, and access to strategic commodities
    September 11, 2023
    The box office is not a measure of success: Basma Hassan
    The box office is not a measure of success: Basma
    September 6, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: E-Finance to operate new electronic petroleum subsidies programme
Share
Notification
Latest News
Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Science
Earthworms contribute to 6.5% of global grain production, says new research
Earthworms contribute to 6.5% of global grain production, says new research
Science
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Science
Egypt to issue new bonds for climate, social goals
Egypt to issue new bonds for climate, social goals
Business
Saudi Public Investment Fund eyes stake in Palm Hills Development
Saudi Public Investment Fund eyes stake in Palm Hills Development
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Economy > E-Finance to operate new electronic petroleum subsidies programme
BusinessEconomy

E-Finance to operate new electronic petroleum subsidies programme

Daily News Egypt
Last updated: 2013/05/07 at 7:42 PM
By Daily News Egypt 6 Min Read
Share
Despite the recent ouster of Egypt’s first elected president, Mohamed Morsi, banking sector officials have expressed optimism in the country’s future. (DNE Photo)
SHARE
Government sources stated that e-Finance’s primary competitor for the project took the form of a joint offer made by National Bank of Egypt (NBE) and Banque Misr. (DNE Photo)
Government sources stated that e-Finance’s primary competitor for the project took the form of a joint offer made by National Bank of Egypt (NBE) and Banque Misr.
(DNE Photo)

By: Ahmed Al-Masri

Egypt’s cabinet recently decided to activate and support a new electronic payment system for gasoline and petroleum products, awarding the rights to implement the project to the electronic payment company e-Finance for a period of three years.

Egypt’s Finance Ministry estimated that a total of EGP 3bn will be saved monthly through implementation of the new programme.

The government agreed to accept e-Finance’s bid to implement the project, set to last up to three years at a cost of EGP 12.8m a month.

The company initially sought to secure ownership rights for the project for a period of five years at a cost of EGP 768m, however Egypt’s cabinet felt that a period of three years was sufficient.

Government sources stated that e-Finance’s primary competitor for the project took the form of a joint offer made by National Bank of Egypt (NBE) and Banque Misr.

Their bid also sought to acquire ownership rights of the project for a period of five years, at a cost of EGP 1.16bn, EGP 400m more than that proposed by e-Finance. The banks initially proposed that the project’s implementation process would last nine months, as opposed to e-Finance’s four months.  Egypt’s government chose the latter, as it would save up to EGP 15bn over the five month difference, amounting to savings of EGP 3bn a month.

The government reportedly already paid EGP 200m to e-Finance, set to be distributed over the next two months as the project’s first payment installment, with payments over the next three years set to decrease 24% monthly.

An official with e-Finance said that Egypt’s Petroleum and Finance Ministries were set to meet to decide the specific timeframe for the project’s implementation, in addition to the specific regions in which the first stage of the project would be implemented.

He added that the company’s bid for the project was superior to that of its competitors, as the company provided advanced solutions for the activation of smart cards through a monetary or point system, whereas other company bids sought to implement the project solely through a monetary system. The Ministry of Finance, he said, based its decision on which bid could implement the project most quickly, a fact which will help Egypt secure its pending $4.8bn International Monetary Fund (IMF) loan.

Other sources within the government stated however that the implementation of the smart card programme was currently facing difficulties, as many expected that it would increase inflation rates, a reality that Egypt’s market could not currently handle. This happened previously in Iran after the use of such cards was converted to a point system.

Egypt’s current budget has set aside a total of EGP 99.5bn for petroleum subsidies, a number expected to increase to EGP 120bn in the coming year.

Officials stated that the government chose E-finance’s bid over others due to the necessity to implement the project as quickly as possible in order to reform the country’s petroleum subsidies programme. The decision relied on Article 7 of Egypt’s Law 89 passed in 1998 which governs Egypt’s bid structure, and grants the government the right to strike direct deals in times of crisis. Egypt’s government also contracted E-Finance in 2007 to establish and implement an electronic payment system for the Ministry of Finance over a period of seven years.

Egypt’s government recently ruled to set the country’s new diesel and gasoline exchange quotas in a way that would regulate the consumption, trade and distribution of petroleum products and cut back on smuggling, through the implementation of the country’s electronic payment system. This will be done through the establishment of a system to control the quantity and value of the amount provided to consumers, which would allow them to increase or decrease their daily rates of consumption.

E-Finance possesses a strong infrastructure and encrypted network capable of connecting all government branches to its electronic payment system, including the Egypt’s tax payment centres, customs ports and insurance offices. This comes in addition to connecting Egypt’s Central Bank, 28 commercial banks, 2000 bank branches and 300 ATM machines to an electronic payments system capable of providing direct deposits for salaries and pensions for over 3.5 million citizens.

 

You Might Also Like

Egypt to issue new bonds for climate, social goals

Saudi Public Investment Fund eyes stake in Palm Hills Development

UNDP, MBRF launch online learning initiative for Arab countries

Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services

GAFI to grant 45 more golden licences to boost investment

TAGGED: Banque Misr, E-Finance, Electronic payments, National Bank of Egypt, NBE, petroleum, smart cards, subsidies
Share this Article
Facebook Twitter Email Print
Previous Article On the Nile stock exchange, the Mediterranean Company and Pioneers Holding ranked joint highest in total amounts of stock traded. (AFP Photo) EFSA reintroduces same day EGX settlements from 23 May
Next Article President to oversee government think tank
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Science
Earthworms contribute to 6.5% of global grain production, says new research
Earthworms contribute to 6.5% of global grain production, says new research
Science
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Science
Egypt to issue new bonds for climate, social goals
Egypt to issue new bonds for climate, social goals
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?