Damascus close to power plant deal with Iran

  • Published: 29 June 2007 16:30
  • Last Updated: 29 June 2007 16:30

Damascus' first independent power project (IPP) looks set to go ahead with Iran's Azarab Energy now close to finalising a deal with the Public Establishment of Electricity for Generation & Trans-mission (PEEGT).

'An energy conversion agreement is under negotiation and is expected to be signed in June,' said an Azarab representative. 'We have received a licence to implement the IPP under investment Law 10 and have secured up to Eur 230 million ($313 million) from Iranian banks, which will account for 85 per cent of the total investment costs.'

he added.

If signed, Azarab will build, own and operate a 450-MW, single-cycle power plant in Sweidieh, in the northeast. Construction is expected to take up to 36 months.

There is an option to convert the plant to combined cycle under the terms of the memorandum of understanding which was signed in June 2006 between Azarab and PEEGT.

Azarab plans to invest up to Eur 300 million ($378 million) in the project and sell the electricity generated from the plant to PEEGT for 25 years (MEED 26:1:07).



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