Gamesa cancels EUR60 million Syria deal

SYRIA: Gamesa chairman Jorge Calvet has said the company had cancelled a deal with the Syrian government to build a 50MW project in protest at the political situation in the country.

Syria has been beset by civil unrest for most of the year

Gamesa was handed the deal in January, following a tender process that was launched in 2009. The Qatineh wind project is to be located near the city of Homs on the northern shore of the Lake Qatineh.

Calvet was speaking at an event at the London School of Economics. According to reports the deal was worth EUR60 million.

Installation of the project was targeted for March. However In June, Gamesa said it had postponed negotiations following the Arab Spring protests the country has been beset by civil unrest and anti-government protests.

At the time Gamesa announced the postponement, it refused to comment on whether the protests played a part in the decision.

In November 2009, Syria’s electricity ministry launched a prequalification process to select an independent power producer to build, own and operate a 50-100MW project for a period of 20-25 years.

Following Syria’s peak crude oil production in the mid 1990s, the country planned to invest $7.5 billion in new energy sources including wind and solar.