This move set the cogs of the construction industry in motion and already mega deals have been awarded for projects including the second phase of the Hidd power and water plant, the Hidd industrial area and port, and the third Manama-Muharraq Crossing.

The government also unveiled an ambitious plan in June to spend BD2 billion ($5.31 billion) on housing and infrastructure projects over the next few years.

On the industrial front, Bahrain has given final approval to a $1.7 billion expansion project at Aluminium Bahrain (Alba) that will raise the smelter's output capacity by 50 per cent to 750,000 tonnes a year. The country is also in the process of modernising its ageing oil refinery at a cost of around $1 billion.

The September 11 attacks in the US have had a negligible impact on the economy with many in the industry now expecting a higher level of inter-Arab tourism which could also spell out greater demand for tourist infrastructure.

Bahrain is making moves to instill transparency, equal opportunities and fair competition in tendering procedures with a new law and a new tenders council affiliated to the cabinet to be appointed.

Power & water

Work is progressing on Phase II of the Hidd power and water plant after the award of a construction contract last August. Already, plans have been announced for the third phase. The Bahrain government is to invest more than BD150 million for the third phase expansion, according to Electricity and Water Minister Shaikh Abdulla bin Salman Al Khalifa.

The total cost of the first and second phase of the project was BD285.6 million. The first phase of the project was commissioned in late 1999, with a capacity of 280 MW of power generation and 30 million gallons of desalinated water daily.

An additional 140 MW of power will be available when the first gas turbine being installed in the second phase comes into operation in June this year. The turbine is expected to be installed on the foundation this month.

French engineering group Alstom Power was awarded the $300.4 million (BD113 million) contract for work on the second phase. Under the agreement, Alstom will install three steam generators, three gas turbines, and one steam turbine to produce a total of 700 MW of electricity and 60 million gallons of desalinated per day, in addition to the installation of two seawater pumps.

The project is planned to be commissioned in three stages, so as to have 140 MW by June-end, followed by additional 280 MW for next summer, and the balance in the summer of 2004. Shaikh Abdulla said water production is not being included in the second phase of the project.

As part of this project, 12 new substations will be constructed and eight substations will be expanded, to strengthen the transmission network in the Hidd industrial area.

Work on the third phase is expected to start by early 2005.

Among other projects in the power sector, German firm Fichtner Consulting Engineers has the consultancy agreement for work to extend the lifespan of Phase Two of the Riffa power plant until 2015.

Phase Two consists of six gas turbines, with a combined capacity of 450 MW, commissioned between 1983 and 1984. Work on site is expected to begin during the winter of 2002/2003, with completion expected during the winter of 2004/2005.

This project complements the rehabilitation project of the Phase One gas turbines, which has been assigned to another consultant, the Kuljian Corporation of the US. Phase One consists of five gas turbines, with a combined capacity of 250 MW.

Industry

An expansion plan for Alba, which will make it the world's biggest single producer of aluminium, received the go-ahead last September. The BD642.6 million ($1.7 billion) Line Five expansion will enable Alba to produce 750,000 tonnes a year of aluminium, boosting its production capacity by 250,000 tonnes. Production is expected to start in the third quarter of 2004.

Alba's 450,000-tonne coke calcining plant built under a $400 million project has been completed. The project included a water desalination plant and a jetty facility.

Meanwhile, Bapco's $900 million (BD340.2 million) modernisation programme continues, with each phase of the four-year project on schedule.

The major modernisation accomplishments are the in-line blending project, the production and launch of unleaded fuel and the $29.5 million kerosene merox plant, which was officially launched last November.

Alstom is working on the instrument modernisation project under an engineering, procurement and construction (EPC) contract worth BD12 million.

Four major projects totalling $737 million are under consideration at Bapco, including a $660 million low sulphur diesel production project.

Causeways & roads

An ambitious project has been proposed to link Bahrain and Qatar which will involve the construction of what is expected to be the longest causeway in the world.

Subsurface investigations and surveys are now in progress to determine the best route for the proposed causeway and are expected to be completed by the year-end.

Sources said 15-km-wide shorelines in both countries and 45 km corridors between them would be surveyed as part of the preliminary investigation. Based on the survey, the final 200 m corridor will be chosen for the causeway between the western coast of Qatar and eastern coast of Bahrain, they said.

Meanwhile, work has started on the third crossing between Manama and Muharraq. The Shaikh Khalifa bin Salman Causeway Bridge between Mina Salman and Hidd is expected to take two years to complete. The Bahraini-Belgian joint venture Haji Hassan-Six Construct has the BD14.5 million contract for the construction of the bridge.

The entire project, including the bridge, reclamation and connecting roads, is expected to cost over BD40 million. The consultant is Hyder Consulting Middle East.

The bridge is 404 m in length and the entire causeway is 6.4 km accommodating a dual three-lane highway. The bridge will have 15.4 m clearance above the sea level to allow boats to pass underneath it and the arches will have a height of 22 m. It will also allow the Electricity and Water Ministry to install cables and water pipes within it.

Dutch firm Boskalis Westminster Middle East has already completed a BD13.5 million dredging, reclamation and rock armouring contract as the first phase of the project.

The Shaikh Khalifa bin Salman Causeway is a vital project among the road network expansion schemes to be implemented at a cost of BD146 million, Works Minister Fahmi Al Jowder said.

He said the projects, which would be implemented over the coming seven to 10 years, would include new bridges, bypass roads and flyovers. They include the reconstruction of the Sitra causeway with new bridges and the fifth phase of the Shaikh Khalifa bin Salman Highway up to Zallaq including three flyovers.

Three other flyovers will be built in the Seef area - at the Pearl roundabout, at the Seef roundabout and near the roundabout towards Le Royal Meridien Hotel. The BD10 million ($26.52 million) system of flyovers is expected to ease congestion in the Seef district. Work is expected to be completed by 2004.

Reconstruction work on the old Manama-Muharraq bridge at Shaikh Hamad Causeway has been completed and the vital link was opened last July.

Port & industrial area

Work on the Khalifa bin Salman Port and Industrial Area at Hidd is steaming ahead with contracts worth more than BD114 million having already been awarded for the construction of the project.

Last October, Great Lakes Dredge and Dock was awarded the main dredging, reclamation and marine works contract valued at BD79.95 million (See Regional News).

The BD250 million Shaikh Khalifa bin Salman Port and Industrial Area project will create a super port, industrial park and free trade zone.

The total reclaimed area of Phase I is about 247 hectares. Of this, 26 hectares will be set aside for central facilities, some of which will be administration and main customs buildings, a medical centre, a business centre, and fire and police stations. A further 92 hectares will be used for roads, parking and utility reservations, including a 10-hectare site for a sewage treatment plant and 15-hectare services corridor for power lines.

The second phase will comprise development of the area between Phase I and the Arab Shipbuilding and Repair Yard (Asry) and Gulf Industrial Investment Company (GIIC), as well as some additional land on the western side of the basin providing plots with sea frontage.

Posford Duvivier/Ace Almoayed are the consulting engineers for the project.

Housing

Four new towns are to be built to house a total of 250,000 people in Bahrain. The towns to be built in East Sitra, North Bahrain, West Hamad Town and East Muharraq are all part of a BD2 billion ($5.3 billion) National Housing Scheme (See separate report).

As part of the scheme, Prime Minister Shaikh Khalifa bin Salman Al Khalifa recently gave the go-ahead for housing projects worth BD20.5 million. The projects include the construction of 1,135 housing units. The houses and flats will be constructed by 26 local construction firms.

Housing loans totalling BD30 million for 1,478 Bahraini families have been approved.

The private sector too is playing a role with housing projects. Saraya has already built a series of housing schemes in Saar. The Isa Mubarak Al Kobaisi Group is also building a housing complex, in cooperation with the Faisal Islamic Bank, in the Hidd area. Work on the project, on a 600,000 sq ft plot of land, began in July 2000 and is expected to be completed by the year-end.

The BD8 million ($22 million) first phase of Zayed Town was officially inaugurated last October. The 19-hectare complex was financed by UAE President Shaikh Zayed bin Sultan Al Nahyan, under the Abu Dhabi Fund for Development.

Zayed Town, opposite Isa Town, features 273 houses. The project is the first in a series of six neighbourhoods planned in the area, sources said.

Hotels & leisure facilities

The Durrat Al Bahrain, Amwaj Islands and a string of hotels and resorts such as the Dana resorts are being built in a bid to attract investors and tourists into the country.

The $800 million (BD301.6 million) Durrat Al Bahrain, which is being built on the southeast end of the island, about 10 km south of the Shaikh Isa Air Base, will offer a range of land ownership and development options.

The community resort, which is jointly owned by the Bahrain Government and the Saudi-based Dallah Al Baraka Group, will be a complete, self-contained and integrated city. It will include apartment buildings, a marina and yacht club, a 350-room five-star hotel, an exhibition and convention centre, an aqua park, a golf course and an indoor shopping mall.

Sales forecasts show that as many as 5,000 residential units could be built over the five-year first-phase period, and that the community's full-time population could reach 20,000 by 2007.

Prospective tenants will either choose to design and build their own homes, or select from 30 unit models that are expected to built by the summer.

The BD40 million dredging contract on the project is being undertaken by the joint venture of the US' Great Lakes Dredge and Dock Company and Bahrain-based A A Nass Contracting Company. The contract, due for completion in 20 months, involves the dredging of 6.5 million cu m and the reclamation of an area of at least 20 sq km.

The infrastructure projects will include a 120 MW power plant and a 20,000 cu m water per day desalination plant. A beachfront promenade will also be another attraction, with a variety of coffee shops and ice cream parlours.

The Saudi-based Fast Contracting Company is building the BD6 million Disney-style aqua park which has been designed by Canadian firm, White Water.

Dredging work under way on the $1 billion Amwaj Islands project is scheduled for completion in June. The 2.7 million sq m project, which will also be a self-contained and integrated city, is located northeast of Qalali in Muharraq.

The islands will feature 1,048 residential plots with private beaches, common beaches and private marinas; 189 plots for three to four-storey apartment buildings; 122 plots for eight-storey buildings; land for a five-star hotel, two four-star hotels, and six three-star hotels; a commercial and entertainment centre, restaurants, a mall, cinema and health club.

The new island is being developed on reclaimed land, with a beachfront of 9.5 km A 3-km causeway will be constructed to link the new ring road highway with Amwaj Islands, which means the distance from the Bahrain International Airport to the new island will be about 8 km.

Plans have also been finalised to develop the island into a Smart City with an agreement signed with US-based Cisco Systems and Oracle to look at the initial infrastructure for a multi-service networking.

The project will be developed in three phases:

The estimated time for completion of Phase I and 2 is 20 months and another 20 months is estimated for completion of Phase 3.

Meanwhile, major plans are in hand to develop the Hawar Islands into a tourist haven. The Southern Area Development Company (SDC) is funding a multi-million-dinar to develop tourist and leisure facilities in Hawar including a luxury marina complex, a five-star resort hotel, extensive leisure facilities, and a resort village.

The proposed Danaat Hawar development, now in the advanced planning stage, aims to provide a unique and exclusive real estate opportunity for those seeking a marine-oriented lifestyle.

The BD10 million Al Dana resort project is taking shape alongside the old Muharraq causeway. The five-star resort project, which will be managed by French firm Accor Leisure Tourism under its brand name Novotel, will consist of 180 chalets, and 25 of them will be floating chalets (See Regional News).

A new BD5 million hotel adjacent to Bahrain International Airport, is expected to open this summer. Originally designed as a four-star hotel, the 13,000-sq-m hotel is being upgraded to five-star, and will be managed by Movenpick Hotels and Resorts, an international hotel chain with Swiss origins.

The five-storey property will include three guest floors with 120 rooms, including suites, executive suites and a business lounge. It will also have a fine dining restaurant, a 24-hour coffee shop and banquet facilities as well as a health club and other recreational facilities. The main consultant for the project is Mohammed Salahuddin Consulting Engineering Bureau (MSCEB), and the main contractor is G P Zachariades.

Work is expected to begin shortly on the Diplomat Radisson SAS Hotel's BD2 million room and restaurant refurbishment project. The renovation of the 246 rooms and suites precedes a major expansion, which will make the five-star property one of the largest in the Gulf.

Meanwhile, construction of the BD6.5 million Diplomat Residential Tower is likely to begin in summer. The 14-storey luxury apartment complex will be built north of the hotel. The project will take three years to complete and offer 78 one-bedroom, 26 two-bedroom, and 13 three-bedroom units, all providing seafront views. A luxury penthouse will occupy the 14th floor.

Two beach hotels, costing $200 million (BD75.6 million), are being planned for Bahrain, according to management consultancy and auditing firm Jawad Habib & Company (JHC). These include a $50 million (BD18.85 million) hotel and chalet beachfront project being set up by investors from Saudi Arabia and a $150 million (BD56.55 million) tourist resort to be built by Bahraini investors.

A new resort has been planned by Gulf Tours on Umm Jalid island off Al Bander Resort. The resort will feature a three-storey hotel necklaced with 42 chalets (see Page 37).

Another beach resort, the brainchild of Fortune PromoSeven president Akram Miknas, is taking shape east of the Marina Club. The Palm Beach Resort will cover an area of 10,000 sq m and cost BD1.6 million to build. Site preparation work is under way and the project should be completed within eight months. The contractor is G P Zachariades and the consultant Intec Bahrain.

When completed, the resort will have three different types of restaurants including a large food-court, leisure facilities, and a swimming pool. The City Centre Group, a company set up two years ago, will oversee and manage the resort.

A number of upmarket villa complexes and hotels are being built in the Seef area and close to the Bahrain International Exhibition Centre.

Work is under way on a BD6 million luxury tourist apartment complex opposite Le Royal Meridien Hotel, which will be the largest of its kind in Bahrain, according to its builders Dadabhai Construction. The six-storey complex, comprising 178 apartments, is being built over an area of 8,575 sq m. The project is due for completion by May, and is in line with the government's efforts to promote Bahrain as a family-oriented tourist market.

Dadabhai said the complex would offer top-class dining and recreational facilities such as a first-class restaurant, a health club, aqua slides and swimming pool. The complex will also have a massive garden area and covered parking for 180 cars.

In addition, the Bahrain government has approved a BD2.5 million tourism and health resort for the Seef area. The resort will also provide physiotherapy and other related services.

Commercial/residential complexes

Work has started on the 42-storey Almoayyed Towers which will be Bahrain's tallest building when completed in 2003. The tower, designed by Shadid Engineering Consultants of Dubai, UAE, in association with Bahrain-based Mazen Al Umran Consulting Engineers, is being opposite to the new Citibank headquarters in Seef (See separate report).

The new 17-storey Seef Tower adjacent to the Seef Mall is due for completion this month. The tower offers office space and will feature a yet-to-be-named five-star restaurant on the top floor (See separate report).

Meanwhile, a new seven storey car-park in Seef Mall opened to the public last June. Offering spaces for 650 cars over the top five storeys, the complex also houses 20 shops, a 1,700 sq m exhibition centre and a 1,600-seat cinema run by Bahrain Cinema Company. The project is part of a four-year development plan that is expected to eventually create the Gulf's fifth largest single commercial centre.

The Sail Tower - also in the Seef area - is nearing completion near Le Royal Meridien and is set to open shortly. The 14-storey beachside deluxe apartment tower houses 21 fully-furnished units. Each unit covers 250 sq m and includes three bedrooms, three bathrooms and an American-style kitchen. The apartment complex, for long-term residents, will have a swimming pool, gardens and a shaded parking area.

The sail-like structure is being built by Chapo and has Mimar as the consultant.

Last March, Taib Bank awarded G P Zachariades (GPZ) Overseas the main construction contract for its $10 million (BD3.78 million) new office building in the Diplomatic Area adjacent to the bank's current location in the Iran Insurance Building. The project's consultant is Ahmed Abubaker Janahi.

The 15-storey curved glass and steel structure complex is scheduled for completion by the end of this year. Aside from office space, the new tower will have four parking levels, a staff health club and cafeteria, a ground floor art gallery, a customer Internet centre and a children's day-care facility.

Bahrain's first hypermarket opened its doors in the Bahrain Mall last May. The $20 million (BD7.56 million) Geant hypermarket, which is a joint venture enterprise between the French Groupe Casino and Business Management Associates (BMA) International, is managed by Fu-Com International.

The much-delayed BD8.4 million Al Dana Mall is now set to open by summer. The two-storey shopping complex is located in the Seef/Sanabis commercial district. Bahrain-based Al Massa Cinema Management and Film Distribution Company will manage the 36,000-sq m mega mall.

The mall's anchor store will be the 7,500-sq m Giant hypermarket of Saudi Arabia. It will also have a 20-outlet food court, a children's recreation area and a 12-screen 3,000-seat movie cineplex. The mall's ground floor has a 800-space car-park, a 2,600-sq m car showroom and exhibition centre, and an arcade of 20 small service shops. Arif Sadiq Design Group is the consultant on the project.

Two 11-storey residential towers in Manama - The Hedaya Tower One and Hedaya Tower Two were completed last July. Thirty-six fully-furnished two-bedroom and three-bedroom apartments are available in Hedaya Tower One, while Tower Two has 16 fully-furnished four-bedroom duplex apartments and two five-bedroom penthouses. The complex has an outdoor children's play area, gymnasiums, squash courts, steam rooms and swimming pools. The four-bedroom duplex apartments also include servants' quarters.

Airport

Around BD3 million was spent last year on expansion at Bahrain International Airport, which has almost doubled the size of the duty free area and increased the number of immigration counters and baggage conveyors.

A new control tower has now been planned for the airport. The Civil Aviation Affairs (CAA) directorate has approved the design submitted by Ahmed Abu Baker Janahi Architects. The project is now in the final development stages, which is being handled by the Works Ministry.

The CAA has also approved a study to look into the possibility of converting the airport's taxiway into an emergency runway.

A contract was also signed between CAA and the Netherlands Aeronautical Consultancy Organisation (Naco) which will design the development plan for the terminal building facilities. A proposed expansion will include more gates, air bridges and halls.

A separate centre to process the immigration and customs formalities of domestic workers is also in the pipeline.

The capacity of the baggage handling system will be doubled by mid-2002.

Racetrack

Bahrain is to build a world-class Formula One-standard motor racing track. The BD30 million ($82.72 million) track, expected to be ready within two years, will be located in Sakhir to the south of Bahrain University.

Local and international firms have been invited to prequalify for the construction of the Bahrain International Racing Circuit which has been designed by the German consultancy Tilke. It will have three circuits, a drag track and a main grandstand capable of holding 16,000 spectators. Construction is expected to begin shortly and is due for completion in August 2003 (See Tenders).

Library

The foundation stone has been laid for Shaikh Isa bin Salman Library and Conference Hall, which is being built near the Al Fateh Grand Mosque in Juffair.

The BD14 million ($37.13 million) library will be 15,000 sq m in area with a capacity to house 250,000 books. It will include a main library, a children's library, a lecture hall, a gallery and a conference hall and will have a car-park to accommodate 800 vehicles.

The works comprise mainly the construction of two major buildings: a 4,970 sq m three-storey library building with a basement area, and an 8,100 sq m multi-purpose conference hall. The project is to be completed by mid-2004.

Ground engineering contractor Keller Grundbau Gulf is working on the foundations of the project. The Ministry of Justice and Islamic Affairs is executing the project and MSCEB is the consultant.

Medical facilities

A number of major hospitals are on the cards for Bahrain. These include a new 500-bed government general hospital to be built at Busaiteen in Muharraq and a 100-bed private hospital in Sanabis/Seef.

The Jeddah-based Saudi German Hospital Group (SGHG) has signed a contract with Seef Properties to build the $80 million (BD30.24 million) private hospital just west of the Seef Mall. The first phase of the hospital is expected to open by December 2003.

The Bahrain Specialist Hospital, which will house world-class medical facilities including the country's first tele-medicine facilities, is scheduled to be operational in March. Main contractor GP Zachariades is working on the premises, which is being converted to a hospital from the defunct Sonesta Beach Hotel.

The hospital will have 69 private bedrooms, five premier suites, four VIP suites, 78 inpatient beds, including an intensive care unit and a completely equipped day surgery and endoscopy unit in addition to a reference laboratory and a completely digital radiology department.

Other private hospitals include the Ibn Nafees Medical Complex, which opened recently, and the 10-storey Dr Tariq Hospital in Mahooz, a contractor for which is expected to be selected shortly.

Other projects