Iranian energy minister Reza Ardakanian attends the Organisation of Islamic Cooperation's (OIC) 1st Water Council meeting in Istanbul, Turkey, November 16 2017. File Picture: GETTY/SERHAT CAGDAS/ANADOLU AGENCY
Iranian energy minister Reza Ardakanian attends the Organisation of Islamic Cooperation's (OIC) 1st Water Council meeting in Istanbul, Turkey, November 16 2017. File Picture: GETTY/SERHAT CAGDAS/ANADOLU AGENCY

London — Iran has struck a deal with Damascus to build a €400m power plant in Syria's coastal city of Latakia, a potentially lucrative deal for Tehran to deepen its economic role after years of fighting in the Syrian conflict.

Iran's minister of energy Reza Ardakanian was quoted as saying by the semi-official Isna news agency that a memorandum of understanding was signed on Tuesday.

Since at least 2012, Iran has provided critical military support to Syrian President Bashar al-Assad’s government, helping it regain control of swathes of the country. Iran experts say Tehran is now looking to reap a financial dividend.

Iran's state news agency Irna reported that the memorandum of understanding was signed by the head of the Iranian power and infrastructure group Mapna and head of the Syrian public authority for electricity generation.

The project is to be launched in 2019, Irna reported.

In 2017, Iran and Syria signed an agreement to repair Syria’s power grid. The agreement involved restoring the main control centre for Syria’s electricity grid in the capital Damascus.

Reuters