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020318_Hurghada SECAP_FINAL

storage and associated

storage and associated refuelling facilities are not yet widely available. The cost of converting low-pressure natural gas to CNG and LNG is significant, particularly LNG. However, technology is taking off in many parts of the world for cars, trucks buses and boats. The estimated average cost of transferring each boat/yacht in Egypt is about 3,815 € for CNG adaptation or 5,085 €, including the ability to keep double option (CNG or Diesel). Kindly note the below calculation is made roughly on the average of 5,085 € per boat. Hence, investment could be proposed in three phases: • Phase 1: 150 diving boats + 700 yachts = 850 x 5085 € = 4,322,250 €. • Phase 2: 150 diving boats + 700 yachts = 850 x 5085 € = 4,322,250 € • Phase 3: 150 diving boats + 700 yachts = 850 x 5085 € = 4,322,250 € This means that after phase 3 100% of diving boats and yachts will have been converted. Considering that the return on investment will be attractive enough for boats’ owners it is recommended to set up a revolving fund of 4.5 m€ supporting investment, asking boats’ owners to pay back the investment after 2 to 3 years in order to replenish the fund an allow for more investment to be supported. With such a mechanism all boats could be converted before 2030. The municipality of Hurghada could set up a dedicated unit to manage the revolving fund. The initial investment could be 5 million Euro of which 100K€ will be set aside per year to cover management costs and administration of the revolving fund. The planned action is set through the following assessments and development: • Develop a thorough assessment of the situation of tourists diving and fishing boats: - Assess the condition, engine size and capacity of the 451 diving boats and 2,226 yachts. - Explore the best technical options and the more efficient ones to inform decision. - Investigate the adequate dimension of the fuelling station to be installed in the harbour (the assumption is that as the market for CNG will be secured by the switching program the Egyptian gas company will cover the investment and secure its access to this new market. • Establish a plan for all stakeholders’ involvement in the program and • Develop a study to install PV panel onto small tourist boats for lighting and supply the basic need in electricity from solar energy instead of diesel. The implementing plan, to transfer at least 400 touristic and diving boats as well as 2000 yachts to operate with natural gas and solar PV in the next five years. Administrative and coordination process • Governorate of the Red Sea – City of Hurghada (Municipality) and Governor’s to approve the plan and its targets, • City Council represented by the Governor approval, • Hotel owners and management in Hurghada – approvals, • Ministry of Petroleum and Mineral Resources (MoPMRs) – study and approve the quantity of the natural gas needed for these boasts switch, including: - Egypt Gas Holding Company (EGAS) – study and approvals, - City GAS Company – Governorate of Red Sea (approval for NG supply). • Ministry of Transport, - Maritime Inspection Authority (MIA) – inspections and approval for safety. 122

• Ministry of Tourism (MoTrm) – renew license as part of the hotel license renewal, • Ministry of Environment (MoEnv) – Assess the environmental impact and benefits, and • Ministry of Investment and International Cooperation (MoIIC) – international investment approvals. Government and Administrative Procedures and Approvals • Initial approval of the Governorate (Municipality), • Environmental permit: according to Egyptian Law for the Environment, Law 4/1994 amended by Law 9/2009, • EEAA approval and process: a Preliminary Strategic Environmental and Social Impacts (SESIs), • Safety and Operation permit by Maritime Inspection Authority – Ministry of Transport, and Ministry of Petroleum permits to supply natural gas. 3. Technical description Link to Governorate (municipal) development plan The SECAP is built on three drivers: a) reduce energy consumption; b) develop energy production; and c) climate adaptation actions. Hence, greenhouse gas emissions from tourism and leisure activities are vital for the Governorate of Red Sea strategy of the climate change adaptation. The tourism sector is one the five main sectors that will be affected by climate change risks. The tourist activities such as diving, fishing and sport boats that are running by nonclean energy (diesel) are adding to such risks. The costal zones of the City of Hurghada that experiencing heavy tourist activities including water sport and leisure are in need of a strategic and comprehensive approach to improve the sustainability of tourism activities. With the large number of tourists and visitors using tourist boats diving boats, it is vital to develop a comprehensive greening of these boats and mobility services in the Red Sea to ensure that the water and air near costal zones in the City of Hurghada will be preserved for the long-lasting stability of tourism and quality of life. This program will improve the Governorate sustainable energy prospectus, yet contribute to achieving meeting Egypt’s vision and Sustainable Development Strategy (SDS) 2030. In this respect, the Governorate will particularly contribute to Egypt’s SDS key performance indicators (KPIs) that are relevant to SECAP, mainly in Energy, Urban development, Environment, and Domestic energy policy: • Secure energy resources, • Increase reliance on local resources, • Reduce the intensity of energy consumption, and • Raise the actual economic contribution of energy sector in the national income 59 . Hence, this planned action #2 on greening the tourist boats would also support the National Adaptation Action, especially in the following costal zones and tourism sectors: Costal Zones sector: 4. Reduce climate change (CC) associated risks and disasters. 5. Capacity building of the Egyptian society to adapt to CC risks and disasters. 59 Nihal El-Megharbel, Presentation on Egypt's vision 2030 and planning reforms, First Assistant to the Minister of Planning, Monitoring and Administrative Reform, October 2015. 123

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