Syria has signed a memorandum of understanding (MoU) with a consortium led by Qatar’s UCC Holding to launch power generation projects worth $7bn, as reported by Reuters.
The agreement encompasses the construction of four combined-cycle gas turbine power plants with a combined capacity of 4GW, and a 1GW solar power plant in southern Syria.
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The initiative will play a pivotal role in revitalising the nation’s energy infrastructure, which has been significantly damaged by more than a decade of conflict.
The solar plant will be completed by 2027 and the gas plants by 2028.
These projects will supply more than 50% of Syria’s electricity demands.
Syrian Energy Minister Mohammed al-Bashir stated during the signing ceremony in Damascus, attended by Syrian President Ahmed al-Sharaa and US envoy for Syria Thomas Barrack: “This agreement marks a crucial step in Syria’s infrastructure recovery plan.”
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By GlobalDataSyria’s electricity sector has been severely impacted by the war, with current generation at 1.6GW – a stark decrease from its pre-war capacity of 9.5GW.
The reconstruction of the power sector is estimated to cost $11bn, and the new administration is advocating for private sector investment, marking a departure from the state-led economic policies of the past.
Regional and international banks will finance the projects, along with capital injection from partners.
UCC Holding CEO Ramez Al Khayyat highlighted the significant employment opportunities the projects will generate, with 50,000 direct and 250,000 indirect jobs expected to be created during the execution phase.
