Syria: Investing in infrastructure needs to get better

Sporadically, the lights go out in Damascus, although power cuts tend to be short-lived and much less frequent than they used to be, say local businessmen. Nevertheless, Syria clearly needs to channel funds into its power sector. Today, it has installed generating capacity of some 3,600MW, and will need to add an estimated 2,200MW by 2006, representing an annual increase in demand of 6%, which calls for an investment of just over $1.6 billion.

So far, funding for the sector has come from the European Investment Bank, with loans of e75 million and e115 million advanced in December 2000 and February 2001 respectively earmarked for upgrading the electricity distribution system.