The Syrian government announced the signing of memoranda of understanding with global energy companies to implement major electricity generation projects, part of efforts to rehabilitate infrastructure heavily damaged in recent years. This move is within a comprehensive plan to stimulate the national economy following the recent easing of international sanctions.
The Syrian Ministry of Energy disclosed agreements to develop five power plants:
-Four gas turbine plants in Deir ez-Zor, Mhardeh, Zayzoun (Hama countryside), and Trefawi (Homs countryside), with a total capacity of 4,000 megawatts.
-A solar power plant in Wadi Al-Rabi, southern Syria, with a 1,000-megawatt capacity.
These projects are expected to significantly increase electricity production, improving service reliability after years of frequent outages. Syrian Energy Minister Mohammed Bashir stated that these investments will strengthen the energy infrastructure, which has deteriorated due to the crisis. Ramiz Al-Khayyat, CEO of Orbakon Holding, noted that the projects could create over 50,000 direct jobs and 250,000 indirect jobs, alleviating unemployment and improving living conditions.
This announcement follows accelerated economic activity after the easing of Western sanctions, with recent months witnessing a gradual return of foreign investments and increased trade. Key developments include:
-Syria’s reintegration into the SWIFT system for international payments.
-Plans to reopen the Damascus Stock Exchange in June.
-Port development agreements, such as Tartus with DP World ($800 million) and Latakia with CMA CGM.
-Resumption of flights with Gulf airlines like Flynas and Flydubai.
Challenges remain, particularly in comprehensive reconstruction and ensuring political and security stability. Success depends on the government’s ability to provide a suitable legislative and logistical environment and sustained international support. An upcoming IMF mission to assess Syria’s economic and financial situation could pave the way for further recovery initiatives.
