Iran has inked an agreement with Syria on construction of a 470-megawatt combined cycle power plant in Swaida city to the south of Syria's capital Damascus, the official IRNA news agency reported Sunday.

Managing director of Iran Power Plant Projects Management Company, Abbas Aliabadi, said Sunday that the preparation to carry out the project has been started, according to the report.

Aliabadi expressed hope that the project would go on stream by mid-2014.

Iranian firms are currently carrying out several other projects in Syria, such as constructing cement factories, hydroelectric power plants, glass factories and silos.

Last December, reports said that five Iranian electrical engineers, who were involved in building the Homs city's power plant over the past two years, had been kidnapped by unknown armed men.

Later in the month, two other Iranian specialists that tried to inquire about the fate of the five abducted engineers were also kidnapped. There was no immediate report on their whereabouts.

As long-time allies in the region, Iran has provided Syria with economic assistance over past years to counter the international isolation and economic sanctions imposed on the country. The two countries have recently signed a series of agreements on economic cooperation to help Syria withstand new pressures.