Minister of Finance Mohamed Maait said that in implementation of the presidential mandates to expand the base of beneficiaries of the initiative to replace old cars that have been manufactured over 20 years ago with ones that run on natural gas, Luxor and Aswan joined the governorates of the first phase.
This step aims to make it easier for citizens to own new natural gas cars that are economically efficient. These cars will be provided through large credit facilities despite the unprecedented challenges the global economy is witnessing that are reflected in the disruption of supply chains and the rise in the prices of goods, services, shipping costs, and inflation rates.
In a statement issued on Wednesday by the finance ministry, Maait added that the state’s public treasury paid EGP 405m for about 17,900 new cars that were allocated to citizens who completed their procedures on the website.
This number includes 16,750 passenger cars and 1,150 taxi cabs and microbuses. He also pointed out that the benefits citizens enjoy within this presidential initiative do not affect any support and facilities that they receive from the state in any other initiatives.
Furthermore, he explained that the presidential initiative to replace old vehicles aims to motivate investors to expand green economy projects to enhance economic growth rates and achieve comprehensive and sustainable development by working to increase production rates of new cars and recycle scrap car components in safe ways and using modern and friendly technological means.
This is to include raw materials in other industries to settle new industrial activities, along with reducing environmental pollution and harmful carbon emissions resulting from the exhaust of old cars.
For his part, Amgad Mounir — First Assistant Minister and Chairperson of the Board of Directors of the Vehicle Replacement Fund — said that the initiative received about 38,000 applications on its website and more than 17,000 old cars that had been manufactured over 20 years ago were scrapped.
He stressed the keenness of the initiative’s management to increase companies’ production of locally manufactured cars, which leads to encouraging the national industry.
Mounir also emphasised that any of the Egyptian companies working in the field of car production can participate in this presidential initiative, so their cars cover the required technical conditions, including local components making up no less than 45% of the car.
Tarek Awad — the Official Spokesperson for the Initiative at the Ministry of Finance — explained that the initiative continuously follows up on any requests or suggestions it receives on the website.
He also pointed out that the initiative offers many advantages and incentives, including the green incentive, which is estimated at 10% of the value of the car of new cars with a maximum of EGP 22,000, 20% for taxis with a maximum of EGP 45,000, and 25% for microbuses with a maximum of EGP 65,000 to encourage owners of old cars to participate in the initiative and get new natural gas cars with unprecedented credit facilities.