News ID: 232187
Published: 0403 GMT October 02, 2018

Iran reaches €400m deal with Syria to build power plant

Iran reaches €400m deal with Syria to build power plant

Iran has struck a deal with Damascus to build a €400-million ($460 million) power plant in Syria's coastal city of Latakia — a potentially lucrative deal for Tehran to deepen economic role after years of fighting in Syria.

The Syrian government is looking to states such as Iran, Russia and China to play a major role in rebuilding the country, Reuters reported.

Iran's Energy Minister Reza Ardakanian was quoted as saying by ISNA that a memorandum of understanding was signed on Tuesday.

Also, IRNA reported that the MoU was signed by the head of the Iranian power and infrastructure group MAPNA and the head of the Syrian public authority for electricity generation. The project is to be launched next year, the report added.

"Iranian private firms are keen to participate in energy projects in Syria and reconstruct its electricity grid," Ardakanian said.

In 2017, Iran and Syria signed an agreement to repair Syria's power grid. The agreement involved restoring the main control center for Syria's electricity grid in the capital Damascus.

Ardakanian said he was hopeful that a second credit line would be launched between the two countries.

Tehran opened a $3.5-billion credit line in 2013, and extended it by $1 billion in 2015, which economists say has helped keep the Syrian economy afloat.

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