The government of Egypt has commissioned the first construction phase of the $220 million Orient Gas Pipeline, linking Egypt to Jordan to begin this week. The channel has a target date of completion set for March 2003 and is expected to earn Egypt $400 million in revenues annually once fully operational.
Expected to boost inter-Arab investment, the natural gas export deal to Jordan is part of a pact signed between the two countries in June 2001 within the framework of a major project to transport Egyptian gas to Jordan, Syria and Lebanon. The 278-kilometer-long gas pipeline will be extended for 18 kilometers under water of the Gulf of Aqaba, 850-meters down to reach the Jordanian mainland.
The Arab Fund for Economic and Social Development (AFESD) granted Egypt a $55 million soft loan for the project and the Kuwaiti Development Fund contributed $108 million in loans for the pipeline. The rest of the financing is being covered by Egyptian funds. — (menareport.com)
© 2002 Mena Report (www.menareport.com )