Syrian Arab Republic

Arab Gas Pipeline Project – Third Stage
(Aleppo – Kalas Section)

Loan No.:


Interest Rate:



Syrian Gas Company

Grace Period:

4 years

Project Cost:

KD 24.8 million


22 years

Amount of Loan:

KD 10.0 million


37 semi-annual installments

Date of Loan Agreement:


First Installment:

4 years following the first disbursement

Date of Effectiveness:




The project aims at strengthening the role played by the Syrian grid in the project to link the natural gas pipelines of Turkey and the Mashreq Arab countries. This will be accomplished by completing the remaining part of the project, namely the Syria – Turkey interconnector. The project will allow the Syrian Government to meet its demand for natural gas by importing it from Iran, via Turkey. The project will also enable the Egyptian  Government to export its natural gas to Turkey, via Jordan and Syria.


The project, which is expected to be completed by the end of 2010, includes extending a 62 km natural gas pipeline, with a diameter of 36 in., from the Syrian city of Aleppo to the Turkish city of Kalas near the Syria - Turkey border, along with the installation of a gas metering station, a supervisory control and data acquisition (SCADA) system, a standby generator, a UPS system and distribution panels to ensure continuity of electric service to the SCADA system. The project also includes the execution of all necessary civil works and the provision of required consultancy services, in addition to compensation of farmers whose lands will be confiscated. 


The Arab Fund's loan covers about 40.0% of the total project cost. The Syrian Government will finance the remaining cost of the project and any additional cost that may arise.

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