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Urban Transport OBA/RBF Scheme-Egypt

Created Feb 15 2017, 12:00 AM by Julian Sosa Valles
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Egypt:  Vehicle Scrapping and Recycling Program


Project aim:


The  project objective of the "Vehicle Scrapping and Recycling Program for the Greater Cairo Region (GCR)  is to replace the aging fleet with efficient, new models, and to help improve the air quality and reduce GHG emission associated with Egypt’s aging fleet of taxis, microbuses, minibuses, and buses.


OBA/ RBF features:


Private taxi owners receive financial and other incentives, to surrender their old vehicles for new, more fuel-efficient models. The incentives include a 25-30% reduction in the price of a new, replacement vehicle, €2,500 in subsidies and tax waivers, discounts on the loan terms and insurance agreements, to surrender their old vehicles for new, more fuel-efficient models. In addition, advance payment funding from the CDM certified emission reductions (CERs) will be used toward the cost of site preparation for the recycling.


Climate mitigation features:


As of 2009, a total of 17,000 taxis had already been replaced with more fuel-efficient models, resulting in 57,233 tons CO2e emissions reduction and a 29% reduction in energy use. A survey of over 600 vehicle owners shows the replaced taxi fleet have an improved level of fuel efficiency, and it improved the standard of living of residents in the serviced municipals.



ESMAP, 2010 - Taxi Scrapping and Recycling Project.