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September 26, 2008 – A GPOBA-funded project in Colombia has closed, having achieved its goal of connecting poor households in underserved areas to Colombia’s natural gas distribution network.

The Colombia Natural Gas Distribution for Low-income Families in the Caribbean Coast project was one of the first GPOBA grant agreements to be signed, in May 2006.

At closing on July 31, 2008, the project had installed natural gas connections and gas stoves, and provided at least three months’ billed service, for a total of 34,142 poor households.

The switch to natural gas for cooking purposes will enable the participating families to make significant savings in household expenses. It will also make cooking safer and cleaner.

Fundación Promigas, a charitable foundation established by Colombia’s largest gas transmission and distribution company Promigas, coordinated the project which was implemented by four regional gas distribution companies:

• Gases del Caribe S.A. E.S.P.
• Surtigas S.A. E.S.P.
• Gases De La Guajira S.A. E.S.P.
• Gases De Occidente S.A. E.S.P

GPOBA provided a US$5.1 million grant for the project which was used to subsidize the cost of new connections. In line with the output-based approach, the GPOBA subsidy was paid only after the services (or “outputs”) were delivered and verified by an independent expert.

For more information:

Project details
Case study