Output-based Aid in Colombia: Connecting Poor Households to Natural Gas Service

  • Sector
    Energy
  • Country
    Colombia
    Region
    Latin America and Caribbean
  • Year Published
    2007
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Natural gas connections could bring substantial benefits to poor households in Colombia. Compared with other fuels typically used for cooking, natural gas is safer, less expensive, and less environmentally damaging. But even though gas is more affordable, connection fees can put the cost of switching to this fuel out of reach for poor families.
 
To help low-income families realize the benefits of natural gas, GPOBA is collaborating with Fundación Promigas, a charitable foundation established by the Colombian gas transmission and distribution company, Promigas. Together, they aim to bring 35,000 new natural gas connections to poor households in Colombia’s Caribbean coastal and south west regions. Through one-time connection subsidies, the project is providing long-term economic and welfare benefits to poor families.