Egypt to slash subsidies in water and wastewater

Published August 3rd, 2017

The Egyptian government has signed off on a move that will see domestic water tariffs rise by up to 50%, marking the latest move in the country’s subsidy reform programme prompted by the IMF as part of its $12 billion loan programme.

The price of water will increase to a range of EGP0.45-2.15/m3 ($0.03-$0.12/m3) while the sewerage tariff (charged as a fixed percentage of water use) will rise from 57% to 63% of water bills. Businesses, meanwhile, will pay up to EGP6.95/m3 ($0.39/m3) for water under the new structure due to be implemented later this month. It comes after fuel and electricity prices in the country were raised last month.

Tackling the levels of subsidy in Egypt – which run at around a quarter of state expenditure – is a key aim for the country, although the increase in consumer prices has been a tricky political issue.