UPDATE 2-Metka to build power plant in Syria

* Metka-led venture to build 700MW gas-fired plant

* Project value more than $896 mln

* Ansaldo Energia has 25 pct stake

* Metka shares rise

(Adds share price, analyst comment)

ATHENS, June 29 (Reuters) - A joint venture led by Greek engineering firm Metka (MTKr.AT) signed a deal worth more than 640 million euros to build a natural gas-fired power plant in Syria, Metka said on Monday.

The project involves the construction, engineering and procurement of a 700 megawatt plant 35 km south of Damascus. Metka has a 75 percent stake in the venture with Italy's Ansaldo Energia, a unit of Italy's Finmeccanica (SIFI.MI), holding 25 percent.

Analysts welcomed the finalisation of the deal, which followed months of negotiations. "METKA fetched a very good price for the project," said analyst Vangelis Karanikas at HSBC Pantelakis.

Metka, Greece's biggest power plant builder and a subsidiary of metals group Mytilineos (MYTr.AT), has been expanding abroad, taking advantage of growing demand in southeast Europe and the Middle East for upgrades to power facilities.

The company's shares rose 1.8 percent in Athens at 0900 GMT compared with the Athens General index .ATG, which was 0.2 percent ahead.

As project leader Metka will invoice to Syria the entire project value, which includes a separate agreement worth 724 million Syrian pounds ($15 million).

Launch of commercial operations will be within three years of the project securing funding. (Reporting by George Georgiopoulos and Harry Papachristou, editing by David Cowell)