The European Union on Wednesday granted a loan of euro200 million (US$255 million) for a natural gas-fired power plant in Syria, the largest E.U. financing ever extended to the Mideast nation.
LUXEMBOURG — The European Union on Wednesday granted a loan of euro200 million (US$255 million) for a natural gas-fired power plant in Syria, the largest E.U. financing ever extended to the Mideast nation.
The European Investment Bank, the E.U.'s long-term financing agency, said the funds will help finance construction of a power plant at Deir Ali, 25 kilometers (16 miles) south of Damascus.
The project is part of an effort to help shift Syria from expensive oil-based electricity to a long-term reliance on natural gas, said EIB vice president Philippe de Fontaine Vive.
"Given Syria's natural gas reserves, the development of a regional gas market offers tremendous opportunities and challenges for the economic growth of the country," he said.
Since 2000, the bank has given a total of euro440 million (US$550 million) in loans to Syria for electricity, health, and private sector projects. In 2005, it plans to fund Syrian projects in energy, telecom, and water.
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The E.U. investment in Syria, which sits between E.U. candidate Turkey and the Mediterranean Sea, is part of large-scale effort to encourage economic development in neighboring countries.
The Syrian government hopes to shift to gas-based electricity within the next 10 years, de Fontaine Vive said. Completing the plant should take three years.
Source: Associated Press
