Dubai : Syria wants international companies to set up the country's first private power generation plant north of the capital Damascus at a cost of about $300 million (Dh1.1 billion) as it seeks to open up more of its economy to foreign investment.
Investors have until September 27 to pre-qualify ahead of bidding for the project in the second quarter of 2011, according to Syria's Public Establishment of Electricity for Generation and Transmission, or PEEGT.
The gas-fired, or heavy fuel oil fired power plant to be located at Al Nasserieh, is expected to have a capacity of up to 250 megawatts of electricity and investors will be offered a 20-year concession to operate the facility, the PEEGT said.
The project is the latest sign of reform to Syria's economy, which for decades has remained tightly controlled by the state. Investors are ploughing into Syria amid ambitions by the government of President Bashar Al Assad to liberalise the economy. Examples include the opening of trading in March on the Damascus Securities Exchange and new laws allowing more foreign investment in the country's banks.
Potential investors in the power plant "will need to have the financial capacity and experience in implementing power generation projects", said PEEGT.
The International Finance Corporation, or IFC, a member of the World Bank Group, is advising the Syrian government on the project. UK consultants Mott MacDonald and Allen & Overy are also advising.
An IFC official involved with the project said the plant will help Syria promote private sector participation in infrastructure and that a public-private partnership law is under discussion.
"The project entails one power plant for the moment, but should open up for more, it is expected to come online by the beginning 2013," he said, adding that the project could cost up to $300 million to develop depending on its final size.
Syria represents a new frontier for foreign power companies to invest. At present private power has gained its biggest foothold in Gulf states such as the UAE and Oman.
Bidders could include the likes of International Power, which already owns almost 2,500 megawatts of generating capacity in the Middle East, according to its website.
"We are active in bidding on growth projects across these markets and continue to review new markets that may be attractive for our business," said a spokeswoman for the UK-based power developer when asked about the Syrian project.
