Syrian Arab Republic

Expansion of Deir Ali Power Generating Station

Loan No.:


Interest Rate:



Public Establishment for Generation and Transmission of Electric Energy (PEGTEE)

Grace Period:


Project Cost:

KD267.4 million


22 years

Amount of Loan:

KD 45.0 million


35 semi-annual installments

Date of Loan Agreement:


First Installment:

5 years following the first disbursement

Date of Effectiveness:



The project aims at satisfying the increasing demand for electric power and energy in Syria, and meeting the increase in load in the southern region of the country, by raising the capacity of the existing Deir Ali power generating station from about 750 MW to about 1500 MW. The project will lead to improving the voltage level and reducing the losses in the grid, as the generating units will be located close to the main load center in the country. The project will also contribute to improving the specific fuel consumption of PEGTEE, as the new units will have a very high efficiency, since they will operate as a combined cycle system.


The project, which is expected to be completed by the beginning of the second quarter of 2012, involves the expansion of the existing Deir Ali power generating station, previously partially financed by the Arab Fund, by adding one steam and two gas turbines, each rated at 250 MW, three electrical generators, each rated at 300 MVA, two heat recovery steam generators, along with executing all required civil, mechanical and electrical works. The project also includes connecting the three generating units to the 400 kV national transmission grid, and providing the consultancy services required to review designs and supervise the project implementation, as well as institutional support, which includes the procurement of systems, programs and equipment needed to enhance the performance of PEGTEE, and training programs for its employees.


The Arab Fund's loan covers about 17.0% of the total project cost. In addition, the Islamic Development Bank contributes to the project with a loan equivalent to KD 42.0 million (16.0%), the Abu Dhabi Development Fund provides a loan equivalent to KD 26.7 million (10.0%), and the European Investment Bank provides a loan equivalent to KD 116.0 million (43.0%). The Syrian Government will cover the remaining cost of the project and any additional costs that may arise.

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