'Azarab will build a single-cycle plant with capacity of 450 MW with the option to convert it to combined cycle,' says a senior Azarab representative. 'The contract will be on a build-own-operate [BOO] model and Azarab will sell the electricity generated from the plant to PEEGT for a period of 25 years.'

Under the terms of the MoU, Azarab has six months to negotiate an energy conversion agreement with PEEGT, with the option of a six-month extension. Azarab will invest up to Eur 300 million ($378 million) in the project. Construction of the plant is expected to take 36 months. The new plant is the latest addition to PEEGT's plans to boost generating capacity.

In March, a Spanish/Polish joint venture (JV) of Iberdrola and Alstom Poland was selected for the estimated $520 million engineering, procurement and construction (EPC) contract to build the 750-MW combined-cycle power plant at Deir al-Zor.

Kuwait-based Arab Fund for Economic & Social Development (AFESD) in February granted a $100 million loan for the construction of the plant. Additional financing has come from the European Investment Bank and the Islamic Development Bank, according to PEEGT officials. Damascus will provide the rest of the funding.

A German JV of Siemens and Koch is working on the EPC contract to build a 750-MW combined-cycle power plant at Deir Ali (MEED 3:3:06).