Lebanon-Syria grid link gets $26 million loan

26 May 2000
Power And Water

Lebanon AFESD support will complete regional interconnection

The Arab Fund for Economic & Social Development (AFESD) has agreed to lend KD 8 million ($26 million) to finance the construction of a power grid interconnection between Lebanon and Syria. The loan was announced at the end of a 15-16 May meeting in Amman of regional electricity ministers. The loan is for 28 years, including six years' grace, and carries annual interest of 4.5 per cent.

The Lebanese government says it is to seek parliamentary approval for the project, which would entail Lebanon joining the Egypt, Iraq, Jordan, Syria and Turkey interconnection.

A feasibility study on the estimated$35 million Lebanon-Syria link, prepared by Electricite de France (EdF), was submitted in September 1999 to the joint economic commission of the two states. Syria has said it is ready to start work on its part of the project. The Lebanese section is awaiting parliamentary approval.

EdF says the project has a number of advantages to both sides. Lebanon would gain access to a new and less expensive source of power, and would have emergency back-up in the event of damage to power stations. It would allow Syria to have comfortable over-capacity in its power stations, and both sides would gain from the difference in load curves, particularly given that Lebanon has a Saturday-Sunday weekend, while Syrian workers get Fridays and Saturdays off.

The 400-kV link will have a transit capacity of 300 MW. Financing has yet to be finalised. AFESD has financed EdF's work as well as most of the other elements in the regional grid.

The first stage of the regional grid, linking Egypt and Jordan, was completed in September 1998, and officially opened six months later. The Syrian- Jordanian and Syrian-Turkish sections are due for completion at the end of 2000. Work has yet to start on the planned link between Syria and Iraq.

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