The agreement was signed in Damascus by Syrian Finance Minister Dr. Muhammad al-Husayn and the bank's president, Ahmed Mohamed Ali. The money will reportedly be used by the Syrians to expand the Deir Ali power station's production ability.
Ali stressed that the bank's board of directors was willing to consider additional requests by the Syrian government for loans for projects "which would benefit the Syrian people."
The bank's president announced that he was seriously considering helping fund efforts to shift the Tigris River water to the Hasakah district, in order to help the agricultural industry there following last years price crisis.
The Syrian minister stressed the importance of the Tigris River project, saying it would help maintain the economic stability of Hasakah's residents.
The Islamic Development Bank was established in 1975 and belongs to the Organization of the Islamic Conference. The bank focuses on funding projects in Islamic countries. Since its establishment, it has helped finance 30 major projects in Syria estimated at $740 million in total.
Doron Peskin is head of research at Info-Prod Research (Middle East) Ltd