27 April 2010 – The Qatar Electricity and Water Company (QEWC) has signed a Principles of Agreement with Syrian Qatari Holding (SQH) for jointly developing, constructing, financing and operating two power plants in Syria.
QEWC general manager Fahd Hamad al-Mohannadi said the agreement would go a long way in developing two 450 MW gas fired power stations in Syria, following a Memorandum of Understanding (MoU) reached between SQH and the Syrian ministry of electricity last year.
The power plants, to be commissioned by June 2013 will be located close to the oil fields in Adra in the northeastern region of Syria. The plants are expected to cost over $1bn and will be funded through a mix of equity capital and project financing. The promoters are currently looking at the possibility of involving an international power company for developing the two plants.
The plants will use combined-cycle technology for their operations. A long-term fuel supply agreement (FSA) has been reached with the Syrian ministry of petroleum and natural mineral resources to facilitate the supply of gas to the two plants.
Al-Mohannadi said the power generated from the two plants would be transferred to the Syrian national grid through a long-term power purchase agreement (PPA) or an energy conversion agreement (ECA), both of which have the same duration as the FSA.
The QEWC general manager said his company was delighted to team up with a growing performer with diversifying portfolio such as SQH and the latest agreement would give his company an opportunity to expand its operations outside Qatar.
“We will make all possible steps to implement the lowest possible tariff as per the specifications to be agreed upon with the Syrian ministry for electricity,” he said. QEWC Business Development Manager Khalid Jolo said construction of the new plants will start in April 2011.