JEDDAH, 15 February 2005 — For the past few years, the Bahrain government has stepped up its efforts to develop the country’s infrastructure sector as a step toward diversifying its economic base. Several billion dollars worth of projects are already in progress or in the pipeline.
Bahrain is doubling its spending on key construction projects in its new BD2 billion budget. Spending on infrastructure was boosted to BD260 million in the first half of 2004 compared with BD136 million in 2003. The government had allocated a substantial sum of the budget for the year 2003 and 2004 for infrastructure and public utilities sectors. Around BD31.4 million was allocated for electricity and water, BD39.4 million for roads, bridges and sewerage, BD76.1 million for housing services and BD14.7 million for civil aviation, according to a report prepared by the Kuwait-based Global Investment House (GIH).
In the first quarter of 2004, Bahrain Financial Harbor (BFH) signed a contract with Al-Hamad Contracting Company for engineering and construction work of Phase One, the financial center of BFH. Total estimated project value for Phase One is BD250 million and is expected to create over 2,000 jobs. Construction of Phase One will take approximately three years to complete.
BFH is the first of its kind in the region, a holistic city within a city, integrating finance, commerce, leisure, lifestyle and the arts. The contract for Phase One includes engineering and construction of the Dual Towers which at 50 levels high will be the tallest building in Bahrain, the Financial Mall, an eight-level building and construction of the Harbor House, a nine-level building.
BFH announced the sale of the Financial Center component of the BFH. It offers local, regional and international financial institutions and related business ownership or lease options within the region’s first world-class financial center.
Bahrain is on a roll with a number of projects in the pipeline, the GIH report said. On the back of tourism boom, Bahrain is witnessing hectic activity in resorts development. One example is the planned Al Areen Desert Spa and Resort. The ambitious desert spa and resort is claimed to be a first-of-its-kind in the region. The main part of the entire development is the Oasis Spa Resort, which will cover 300,000 sq m and will be developed as a comprehensive facility offering an entire array of health, spa and therapeutic facilities. The Oasis Spa Resort, the first component of the project, is expected to be completed by this year-end.
The Amwaj Islands in the northern tip of Muharraq has entered a new phase, with the awarding of contract for bridge construction. People are expected to start moving to the island in March. The Al Marsa Floating City, reminiscent of Venice, seeks to capture the exclusive ambience created by other upmarket residential marina projects. Also at Amwaj is the Tala Island project, another upmarket location in the making.
In view of the influx of tourists Bahrain International Airport is undergoing a massive expansion which would double its capacity and facilities within three to four years. The new projects will include a new satellite passenger terminal, additional air bridges, a multi-story car park, shopping and leisure complex, as well as a new dedicated air cargo and logistics area. The number of air bridges at the airport will be increased from seven to 15, and the check-in desks from 44 to 100. The baggage handling capacity, which has been doubled from 1,500 to 3,000 pieces per hour, will double again to 6,000 when the expansion project is completed. The baggage delivery units will also double from five to 10. A new control tower, an upgraded second emergency runway and new airline lounges utilizing the latest technologies are due for completion in 2005, the report said.
The Formula One success has revved up sports facility development in Bahrain. On the anvil is the Shaikh Khalifa ibn Salman Al-Khalifa Sports City in Isa Town. The project includes a stadium with a capacity for 3,580 spectators which replaces the old Isa Town stadium, a multipurpose hall with a capacity for 2,500 spectators, tennis courts for 70 spectators, a 50 m Olympic swimming pool with eight lanes in addition to a 25 m swimming pool, also with eight lanes, and other facilities.
Bahrain’s current power capacity is some 1,850 megawatts of electricity, while consumption is around 1,650 megawatts. The country’s power demand is growing at the rate of seven percent per year. The government has spent millions of dinars on sustaining a steady flow, but power consumption goes up drastically during the summer, and the strain on the system sometimes results in breakdowns or power outages amid high temperatures. Bahrain plans to overhaul and upgrade its power infrastructure as part of its strategy to provide the optimum environment for attracting foreign investment. In line with these aims, the government has awarded the contract to foreign firms to draw up a master plan of Bahrain’s power and water requirements from 2006-20. The government has also announced plans for the country’s first independent power project at the Hidd industrial complex on Muharraq.
Bahrain’s Electricity Ministry has asked the government for BD700 million ($1.86 billion) to upgrade power facilities after a massive blackout brought the country to a halt in August 2004.