The allocation is among the largest international commitments
to Syria since the government this year said it needs around $85 billion in
investment over the next five years to develop the country of 20 million
people.
"An agreement has been reached and the Turkish
government has extended a credit line. The money will be withdrawn on project
by project basis," Mohammad Al-Hussein told Reuters in an interview on
Sunday.
Al-Hussein did not specify the projects but the
government had said it requires at least $9 billion to solve electricity
shortages alone, and meet demand rising at 6 percent annually.
Repairing a dilapidated water network and expanding the
modest transport network and health system also need funding.
Syria's population is about a third that of Turkey but
its gross domestic product is less than a twelfth of its neighbor, with which
it shares an 800-km (500-mile) border.
The two countries were foes until ties began to improve a
decade ago, culminating in 50 bilateral agreements signed last year.
The minister said the projects financed by Turkey will go
to Turkish companies according to arrangements by Turkey's state-owned
Eximbank.
Al-Hussein was speaking on the sidelines of a
"strategic council" meeting with Turkey in the Mediterranean port
city of Latakia on Sunday that included more than 25 ministers.
Saudi Arabia signed a memorandum of understanding with
the Finance Ministry in March to lend $140 million to raise power output.
Businessmen and independent economists have criticized
Syria's opening to Turkey as profiting Turkish exporters without accompanying
investments.
Turkish exports to Syria rose by 38 percent to $828
million in the first six months of 2010 compared with the corresponding 2009
period. Syrian goods going the other way, mostly oil, were half this figure,
although they almost doubled.
Al-Hussein said building infrastructure and international
development cooperation was a priority, pointing to a presidential decree this
month establishing a state-owned holding company with capital of $108 million
that will generate more revenue for the state.
"The new company will enter the investment market as
a main player and will be entrusted with setting up a sovereign fund,"
said Al-Hussein, who will be also the chairman.
"Its capital will be wholly paid up by the treasury
but we may later consider initial public offerings for projects the company
enters," Al-Hussein said, without specifying what those projects would be.
The government already is a 50 percent shareholder in a subsidiary
of the Qatari Diar conglomerate, which is controlled by Qatar's sovereign fund.
The Syrian subsidiary was set up several years ago to
invest in real estate and power projects in Syria.
