Work is set to begin this month on the first phase of the BD300 million ($810 million) Durrat Al Bahrain residential and holiday resort which will be owned by the Bahraini government and Saudi Arabia's Dallah Al Baraka Group.

Up to 20,000 people could live on the 20 sq km island and onshore complex.

Construction will start with a BD10 million Aqua Park which will be the focal point of the resort, located 10 km south of the Shaikh Isa Air Base.

The water sports theme park is expected to be the largest in the Gulf. National Economy Ministry government shareholdings director Mahmood Al Kooheji said a shortlist of contractors had been drawn up and a tender announcement would be made later this month.

Engineering consultants have begun plotting land reclamation and channel dredging that will be required for the resort. The water park, to be located onshore, is being designed to accommodate as many as 4,000 visitors at a time and is scheduled to open by early next spring. Resort highlights include a screened beach area for women, tube rides, slides, wading pools, a range of swimming pools, a wave machine, bumper boats and concession stands.

The first phase development will include, besides the Aqua Park, a power plant and several onshore facilities such as an 18-hole grass championship golf course, an exhibition centre, a marina, a jetty, a resort hotel and a beachfront promenade. An estimated 5,000 apartments and townhouses and luxury villas are expected to be built at the resort.

Ownership rights will be extended to foreigners.