Latest news with #MohammedAlBashir
Japan Times
03-06-2025
- Business
- Japan Times
For Syria, Qatar's $7 billion power plan hinges on it fixing its grid
Qatar has pledged to help war-torn Syria rebuild, but its $7 billion plans for new power plants will mean little unless Damascus can stop armed gangs from looting power cables faster than the cash-strapped government can fix them. The deal announced last week by an international consortium led by Qatar's UCC Holdings promises to massively expand Syria's generation capacity. It marks Syria's biggest foreign investment announcement since U.S. President Donald Trump unexpectedly announced the lifting of U.S. sanctions on Damascus last month. For the Islamists who toppled Bashar Assad in December, it is a vital step toward getting Syria's infrastructure back on its feet, as they seek to revive the economy and offer hope to a population exhausted by 14 years of conflict. But for Syrians to feel the benefit, the government must first fix the transmission grid. Years of neglect have left the sprawling network of transformer stations and towers stripped as looters continue to steal cables and other components. Two-thirds of the grid is either completely destroyed or in need of major repair, with a repair bill the Energy Ministry currently puts at $5.5 billion, money the state does not have, meaning private investment or other donors must be found. Energy Minister Mohammed al-Bashir said the Qatari-led projects — four combined-cycle gas turbine power plants plus a solar plant — would need three years to be fully operational. "During that time, we may complete the grid rehabilitation," he said. A drone view shows Syria's largest power plant in Deir Ali, south of Damascus, on May 20. | REUTERS Before 2011, the grid reached 99% of Syrians. Today, it generates less than a fifth of its prewar output, much of which is stolen. In addition to stealing cables and other components, people are also siphoning off power. That means Syrians get only a few hours of power each day from the grid — even in Damascus, where the air can reek of fumes created by makeshift generators. With electricity so limited, Syrians shape their daily routines around the power schedule, often waking up early to do laundry when electricity is available, for example, then returning to bed. Without reliable power, refrigerating food is another problem, forcing families to buy and cook just enough fresh food for the day. The problem is a leading one for new interim President Ahmed al-Sharaa as he seeks to revive the economy. Choked by sanctions until last month, his government has struggled to establish its grip, with armed groups spread throughout Syria. In the chaos following the fall of Assad, looters have felled transmission towers across the country, stealing cables in order to sell copper and aluminum on the black market. Near Syria's biggest power plant — Deir Ali, south of Damascus — severed cables dangle from now disconnected transmission towers. "Our teams work in one place and the looting is somewhere else," said Khaled Abu Di, head of Syria's Public Establishment for Transmission and Distribution of Electricity. Over 80 kilometers of cables in southern Syria have been looted since Assad's fall, he said, noting looting in eastern Syria had thwarted efforts to restore a key transmission line. Security forces were now helping to secure the line, he said. "But we are talking about 280 kilometers of line; we can't hire security along this long line." Ahmad Alakhras, who is leading grid restoration efforts in the south, said his teams often witness looting but are powerless to intervene as the thieves are usually armed. "Our warehouses are almost empty. Between the cities of Sweida and Deraa, 130 tons of high-voltage aluminum conductors were stolen in the past months," he said. Missing ingredients Syria is of course only just taking its first steps in recovering from war, and therefore remains a high-risk destination for investors, lacking key ingredients such as a stable currency, a functional banking sector, and security, said Ghiath Bilal, an expert on the country's power sector. Insecurity and a lack of territorial control are hindering government attempts to patch up the grid, he said. Energy Minister al-Bashir said the government is banking on the private sector taking a leading role in fixing the grid, with companies potentially partnering with the state as contractors. Under such deals, they would be able to sell energy to consumers, recouping their investments. A power plant in Deir Ali, near Damascus, on May 20 | REUTERS Since Trump announced that sanctions would be lifted, Chinese, U.S., Qatari and Turkish firms have all shown interest in potential investments in the grid, said Energy Ministry spokesperson Ahmad Suleiman. Government plans foresee private investors renting transformer stations and high-voltage transmission lines until they redeem their investments, he said. A major challenge for investors is that Syria's power has long been heavily subsidized, with consumers under Assad's rule paying a fraction of the real cost. With 90% of Syrians below the poverty line, any removal of subsidies would be gradual, said Samer Dahy, an electricity sector researcher for the Lebanese Institute for Market Studies. Yet some investors see scope for undercutting the price of current makeshift substitutes, such as private generators. Syrian businessman Diaa Qaddour, who is planning a $25 million investment in the grid in northern Syria, expects to offer prices well below levels currently paid by consumers relying on such substitutes. Through his Turkey-licensed company, STH Holding, Qaddour said his initial plan is to electrify up to 150,000 homes in rural Aleppo, drawing on power from neighboring Turkey. He is bullish despite the challenges, citing experience of operating in the north, where Turkey long held sway as a major backer of the opposition to Assad. "The best thing we have going for us is that we've been present on the ground for five years," he said.
LBCI
29-05-2025
- Business
- LBCI
Syria signs $7 billion power deal with Qatar's UCC Holding-led consortium
Syria has signed a memorandum of understanding with a consortium of international companies led by Qatar's UCC Holding to develop major power generation projects with a foreign investment valued at about $7 billion, UCC said in a statement on Thursday. The agreement involves building four combined-cycle gas turbine power plants with a total capacity of 4,000 megawatts, plus a 1,000-MW solar power plant in southern Syria. "This agreement marks a crucial step in Syria's infrastructure recovery plan," said Syrian Energy Minister Mohammed al-Bashir, who signed the deal in Damascus in the presence of Syrian President Ahmed al-Sharaa and U.S. envoy for Syria, Thomas Barrack. Construction is expected to begin after final agreements and financial close, and is targeted to finish within three years for the gas plants and less than two years for the solar plant. Once completed, the projects are expected to provide over 50% of Syria's electricity needs.
Khaleej Times
29-05-2025
- Business
- Khaleej Times
Syria signs $7 billion power deal with Qatar's UCC Holding-led consortium
Syria has signed a memorandum of understanding with a consortium of international companies led by Qatar's UCC Holding to develop major power generation projects with a foreign investment valued at about $7 billion, UCC said in a statement on Thursday. The agreement involves building four combined-cycle gas turbine power plants with a total capacity of 4,000 megawatts, plus a 1,000-MW solar power plant in southern Syria. "This agreement marks a crucial step in Syria's infrastructure recovery plan," said Syrian Energy Minister Mohammed al-Bashir, who signed the deal in Damascus in the presence of Syrian President Ahmed al-Sharaa and U.S. envoy for Syria, Thomas Barrack. Construction is expected to begin after final agreements and financial close, and is targeted to finish within three years for the gas plants and less than two years for the solar plant. Once completed, the projects are expected to provide over 50% of Syria's electricity needs. After 14 years of war, Syria's electricity sector has been suffering from severe damage to its grid and power stations, aging infrastructure, and persistent fuel shortages, generating only 1.6 gigawatts of electricity, down from 9.5 GW before 2011. Reconstructing the power sector is expected to cost around $11 billion and the new administration is betting on the private sector shouldering the burden, underlining a shift from the state-led economic policies of the Assad era. The projects will be financed through regional and international banks, in addition to capital injection from the partners, UCC Holding CEO Ramez Al Khayyat said. They are expected to create 50,000 direct and 250,000 indirect jobs during execution, the UCC Holding CEO said. Doha, one of the region's sternest opponents of Bashar al-Assad and backers of the rebels-turned rulers who replaced him, is now positioning itself to play a major role in Syria's reconstruction, along with Turkey.
Asharq Al-Awsat
29-05-2025
- Business
- Asharq Al-Awsat
Syria Signs $7 billion Power Deal with Qatar's UCC Holding-led Consortium
Syria has signed a memorandum of understanding with a consortium of international companies led by Qatar's UCC Holding to develop major power generation projects with a foreign investment valued at about $7 billion, UCC said in a statement on Thursday. The agreement involves building four combined-cycle gas turbine power plants with a total capacity of 4,000 megawatts, plus a 1,000-MW solar power plant in southern Syria, according to Reuters. "This agreement marks a crucial step in Syria's infrastructure recovery plan," said Syrian Energy Minister Mohammed al-Bashir, who signed the deal in Damascus in the presence of Syrian President Ahmed al-Sharaa and US envoy for Syria, Thomas Barrack. Construction is expected to begin after final agreements and financial close, and is targeted to finish within three years for the gas plants and less than two years for the solar plant. Once completed, the projects are expected to provide over 50% of Syria's electricity needs. After 14 years of war, Syria's electricity sector has been suffering from severe damage to its grid and power stations, aging infrastructure, and persistent fuel shortages, generating only 1.6 gigawatts of electricity, down from 9.5 GW before 2011. Reconstructing the power sector is expected to cost around $11 billion and the new administration is betting on the private sector shouldering the burden, underlining a shift from the state-led economic policies of the Assad era. The projects will be financed through regional and international banks, in addition to capital injection from the partners, UCC Holding CEO Ramez Al Khayyat said. They are expected to create 50,000 direct and 250,000 indirect jobs during execution, the UCC Holding CEO said.
Arab News
23-05-2025
- Business
- Arab News
Turkiye to provide Syria with 2 billion cubic meters of gas annually
DAMASCUS: Turkiye will provide 2 billion cubic meters of natural gas to Syria each year, Turkish energy minister Alparslan Bayraktar said on Thursday. In a joint news conference with his Syrian counterpart in Damascus, Bayraktar said that Turkiye's gas exports to Syria will contribute to an additional 1,300 megawatts of electricity production in the country. Ankara, which supported rebel forces in neighboring Syria throughout the 13-year civil war that ended this month with the ousting of Bashar Assad, is now positioning itself to play a major role in Syria's reconstruction. Turkiye will also provide an additional 1,000 megawatts of electricity to neighboring Syria for its short term needs, he added. Syrian Energy Minister Mohammed Al-Bashir said they agreed to activate a gas pipeline that connects Syria with Turkiye, with gas flows expected in June. 'This will significantly boost electricity generation, which will positively impact the Syrian people's electricity needs,' Al-Bashir said. The two minister discussed completing a 400-kilovolt line that links the countries, contributing to importing around 500 megawatts of electricity into Syria, to be ready by the end of the year or shortly thereafter, he added. Cooperation also includes opening the door for Turkish companies to invest in mining, phosphate, electricity generation and electricity distribution in Syria. 'There is very intensive work underway regarding the discovery of new natural resources, whether gas or oil, on land or at sea,' Bayraktar said. (Reporting by Riham Alkousaa in Damascus and Huseyin Hayatsever in Ankara; Editing by Jonathan Spicer and Louise Heavens)
