04-04-2004. The world’s eye will be on Bahrain that day.
At a speed which could awe even the best of the Formula 1 drivers, Bahrain International Circuit (BIC) is getting ready for one of the the biggest events for the Kingdom as well as the Middle East.

In many respects, the Bahrain International Racing Circuit project will prove to the world that Bahrain, a nation of 700,000, can rise to the occasion and realise its dream – and complete a world-class project, on schedule, on budget and to high standards.
There have been many odds against the project. The fast-track development - the first of its kind in a desert environment – has allowed just two years from dream to reality. With it have come the mind-boggling logistics involved in staging such an event. And within this short time span, a host of contractors have been kept busy in an attempt to meet the demands of the project.
It’s not that there is dearth of projects. The massive $1.7 billion expansion by Aluminium Bahrain (Alba), which got under way early last year, is another landmark development which will place the company (hence country) on the top rung of the global aluminium smelting industry. The prestigious $1.3 billion Bahrain Financial Harbour and the $1 billion Amwaj Islands are other key developments that have made headway over the past year.
Bahrain appears to be emulating the example set by the Dubai – though not at that emirate’s frenetic pace. A series of leisure and resort developments is on the drawing board including the $600 million new spa-style resort near the Al Areen wildlife park, $700 million Iceberg project, which will boast one of the longest snow slopes in the world, another major resort near Zallaq and the Durrat Al Bahrain – but it remains to be seen how quickly these will take shape.
The public sector has been active over the past year with a significant number of road projects which are under way or set to be launched.  The industry now awaits the launch of the mega Bahrain-Qatar causeway and Sitra causeway project.
Contractors in the country are lamenting the rising costs of building materials – steel and cement costs have been surging because of the strength of the Euro.  Their problems have been further compounded by the fact that the country is suffering a sand shortage following a Saudi decision in July to ban export of sand and aggregate to its neighbours. High-level talks are now under way to resolve the problem. More than 6,000 tonnes of desert sand per day was being imported daily from Saudi Arabia prior to the ban. 
On the plus side, a degree of transparency has been introduced into government tenders with the establishment of a tender board early last year. A website was also launched at the end of last August to provide details of these tenders.

Oil & industry
 In the oil and petrochemical sector, new projects worth more than $3 billion are in the pipeline, according to Oil Minister Shaikh Isa bin Ali Al Khalifa.
They include a new $1.4 billion petrochemical complex, a $100 million lube oil manufacturing unit as well as a $1.2 billion project to increase the output of the Abu Sa’afa oil fields. There is also a plan to redirect the Bahraini-Saudi oil pipeline at a cost of between $37 million and $76 million. Feasibility studies are under way on these projects.
Meanwhile, Bahrain has awarded Japan’s JGC Corporation a $431.6 million deal to modernise the ageing state-owned oil refinery. The engineering, procurement and construction management contract is part of a $650 million plan to modernise Bahrain Petroleum Company’s (Bapco) refinery. The project is Bapco’s largest and is expected to be completed by 2007.
The entire project involves building a new 40,000 barrel per day (bpd) hydrocracker, a hydrogen plant for the new cracker as well as upgrading the existing 45,000 bpd hydrocracker to produce low sulphur diesel.
Work is in full swing on Alba’s potline 5 expansion, which will raise the smelter’s annual capacity by 307,000 tonnes from the current 520,000 tonnes.  The project will make Alba the largest smelter in the world outside of Eastern Europe on completion of work by February 2005.
Contracts worth an estimated $520 million have been earmarked to go to local firms as part of the smelter expansion project.  Contracts for the construction of a $350 million power plant, as part of the expansion, have also been awarded (see page 66).

Power & water
Bahrain has announced plans to develop a third power and water plant as an independent water and power project (IWPP). The project is aimed at meeting the soaring demand which is expected to outstrip supply by 2006. The country currently has two power and water plants, the ultra-modern Hidd complex and the ageing Sitra plant. It also has three smaller plants which produce only electricity.
At the Hidd power plant, work is set to be launched on the third phase development which involves the installation of 60 million gallons per day of desalination capacity, along with pumping stations, distribution networks and reservoirs.
Binnie Black & Veatch International of the US has been appointed consultant on the BD150.4 million ($400 million) water desalination project. Tender documents on various packages are expected to be finalised this year.
The water desalination project is included in the study on a 15-year master plan (2006-2020) for electricity and water in Bahrain, which is being conducted by SNC-Lavalin of Canada and Binnie Black & Veatch.
The Phase III project  comprises two distinct components: the production and post treatment of the distillate water and the transmission of the treated water to the various water distribution stations.
All the works being executed under this project have to be integrated within the existing production plant and the water transmission system without affecting their day-to-day functioning. The plant is expected to go on stream by 2006.
Among other developments in the sector, a contract for the Ras Abu Jarjur water desalination plant expansion is likely to be awarded this month, according to a spokesman for the Ministry of Electricity and Water.  Three international companies had submitted tenders for the project. The lowest bidder was Preussag of Germany at BD8.4 million. Sasakura Engineering Company of Japan – which built the Ras Abu Jarjur reverse osmosis plant in 1983 and the first expansion in 1994 – was the second lowest bidder at BD10 million. Al Kawther of Saudi Arabia was the third bidder at more than BD10 million. The current expansion will involve adding another three million gallons by installing two more desalination units.
Once the contractor is appointed, the work is to be carried out in 20 months.

Roads & bridges
Bahrain awaits the go-ahead from Qatar for the construction of a 40-km causeway which will link the two countries. The feasibility studies and conceptual designs have been completed for the estimated BD760 million ($2 billion) project, which is destined to be the world’s longest causeway. As per the study, it is estimated that the causeway would take four years to complete.
Among other ambitious plans mooted in the transportation sector is a $4 billion (BD1.512 billion) project to build a rail network linking Bahrain, Saudi Arabia and Qatar.  The project, though, is still in its embryonic stage.
New bridges are to be built at an estimated cost of BD21 million ($55.7 million) to replace the existing one at Sitra. Consultancy bids for the contract to design new bridges are currently being evaluated by the Works and Housing Ministry.
The existing bridges of the Sitra Causeway will be demolished upon completion of the new project that includes the construction of a three-lane causeway and the tendered bridges. The project is expected to be implemented on a fast-track basis (see Regional News).
Construction work is drawing to a close on the Shaikh Khalifa bin Salman Causeway - also known as the third Manama-Muharraq crossing – which links Muharraq with Mina Salman. The marine bridge has been completed and work is under way on the new Mina Salman Gate which is being built to clear the corridor for the causeway from the marine bridge to the Mina Salman port gate. The existing gate at Mina Salman will be demolished and the Mina Salman junction will be redesigned shortly.
The new causeway passes through the existing port facilities and links with the Mina Salman junction, through the port gate.
Among other major road projects is the multi-million-dinar Durrat Al Bahrain Highway. Cebarco has submitted the lowest bid of BD17.6 million for the highway project, which will extend from the South Alba area to the Durrat Al Bahrain Resort City. The 28 km highway will have a two-lane dual carriageway and five flyovers. The contract period is two years. However, a consultant is yet to be appointed on the project.
Cebarco is currently working on the BD9.7 million ($25.73 million) Seef flyovers project, north of the existing Central Market roundabout. The North Manama Corridor Improvement (Central Market Interchange) project is expected to be completed in early 2005.
Bahrain, meanwhile, has unveiled a BD200 million ($530.9 million) masterplan to slash the rising number of road deaths and streamline traffic flow. The ambitious new blueprint to ease congestion, expand road links, build flyovers, underpasses and cut accident statistics, will be completed by 2011.
 
Airport
Bahrain International Airport is to undergo a BD75.6 million ($200 million) expansion which will double its capacity and facilities within four years. The new projects will include a new satellite passenger terminal, additional air bridges, a multi-storey 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, as part of the expansion, while the baggage handling and delivery capacities will be doubled.
 A new control tower – being built at a cost of BD2.43 million ($6.5 million) – an upgraded second emergency runway and new airline lounges utilising the latest technologies are due for completion by June.

Bahrain Financial Harbour
Work on the prestigious $1.3 billion Bahrain Financial Harbour has moved ahead with the reclamation and piling work completed on the first phase of the project.  The industry now awaits the award of the first major contract on the project – which should be made within two months - for the buildings package under the  first stage of the project. This involves the construction of the Financial Centre at an estimated cost of BD94.5 million ($250 million) (see page page 70).

Racing circuit
Work on the Bahrain International Circuit is moving ahead of schedule according to the contractor, with more than 80 per cent of the BD56.2 million ($150 million) project complete. The project is slated for handover by March 7 (see pages 38-64).

Commercial & residential projects
Real estate is emerging as an important investment sector in the country and has received a further boost given the fact that foreigners are encouraged to buy property in tourism, financial and specific high-rise projects and  are now be granted residence visas to Bahrain if they do so.
This move has further enhanced the popularity of the $1 billion Amwaj Islands project being developed on the northeastern tip of Muharraq by Ossis Property Developers. Some of the major projects being developed as part of the project are the Al Marsa Floating City and Tala Island.
Work is under way on the BD100 million ($265.9 million) Al Marsa Floating City project. The project – owned by Al Shamil Bank and YBA Kanoo Group – entails the construction of 215 waterfront villas, chalets and flats covering a land area of 53,430 sq m within the Amwaj islands development
The project comprises two sections: residential and commercial. The residential aspect of the project was launched last June and will be completed in three years while the overall project is scheduled to be complete in June 2008. The contractor is Chapo (Charilaos Apostolides).
The $100 million beachfront residential community Tala Island will be developed on a 110,000 sq m island by Tala Development Company. The project, which will be developed in three phases over five years, will include 77 villas and 478 apartments.
The project’s architectural and engineering design works were conducted by Davenport Cambell and Hyder, two leading engineering companies.
Another aspect of the Amwaj development is the Al Fanar Resort where land will be sold directly to hotels and resort developers.  Ossis is currently reviewing design proposals for a marina, which forms part of the resort.
In addition, other new developments continue to spring up within the Islands.
The infrastructure of the entire Amwaj Islands is to be provided by Ossis and should be completed by the end of 2004 or early 2005.
Construction of the $1.2 billion (BD453.6 million) Durrat Al Bahrain tourist resort has been put on hold after new backers called for a rethink over project designs. Kuwait Finance House (KFH) has ordered a temporary halt on work, after taking a 50 per cent stake in the flagship development.
WS Atkins has been appointed as consultant to review the original plans and bring them in line with “international standards”. It could mean a whole new look for the resort, which new chairman Yousif Taqi described as “lacking identity”.
Work may incorporate a pearl theme to match the name, which literally means Pearl of Bahrain.
Specialists are also being called upon to finish a BD3 million ($7.97 million) aqua park which forms part of the project.
A number of commercial complexes are being developed in the Seef area, which has become a major centre of real estate development. The area is home to Bahrain’s tallest building, the Almoayyed Tower, which rises to a height of 173 m. The tower, expected to be handed over by the end of this month, includes 42 commercial floors plus a basement, two floors for services and two for the health club, swimming pool and cafe. The ground and mezzanine floors will be a shopping arcade.
A new car-park building, with space for 800 to 1,000 cars, is planned as the final phase of  the building. However, no decision has yet been made to move ahead with the project.
Among other buildings being built in the area is the new headquarters for the Bahrain National Holding (BNH) Company. The BD3.5 million ($9.28 million) headquarters is now nearing completion (see page 72).
A major residential project completed last year in Seef was the luxury Sail Tower, which is being managed by the Ritz-Carlton Bahrain Hotel and Spa.
Another residential tower planned for the area, by Al Khaleej Development Company (Tameer), will be built adjacent to Seef Tower. Design work is under way on the project which comprises a 16-storey building  and a multi-storey car park.
Meanwhile, work is moving fairly rapidly on the Zamil Tower in central Manama, after a slow start with the project. The twin-tower complex, which stands as a gateway to Manama suq, is scheduled for completion this year.
Work has started on a BD10 million ($26.52 million) commercial complex in Sitra, which is described as a 'new Seef Mall'. The mall  will include a hypermarket, a variety of stores, coffee shops, food courts, a games arcade, offices and parking for 900 cars. The 46,838 sq m mall is due to be completed by April 2005.

Hotels & leisure facilities
Plans for the $700 million (BD264.6 million) Bahraini Iceberg project are being finalised. A land agreement has been inked for the project which will be located at Zallaq. The first phase, which will include a themed five-star hotel, snow slope and shopping mall, will take three years to complete. The second phase will include a marina, beach and ice hockey rink and will take a further two years.
The snow slope is expected to be the longest of its kind in the world and will provide a year-round venue for snow sports. The design is inspired by Caspar David Friederich’s picture The Iceberg, which dates back to 1824.
The project is being developed by the Bahraini German Entertainment Projects Company and BCB Bartels Consult. It was initiated by the joint venture partnership between Riyada Consulting Company and Ravinala International Consultants, Germany.
Work will start on the Oasis Spa Resort – the first phase of the planned $600 million Al Areen Desert Spa and Resort in Bahrain –before the middle of this year, its promoters said. The ambitious desert spa and resort, claimed to be a first-of-its-kind in the region, is being developed by Bahrain-headquartered Gulf Finance House (GFH), a leading investment bank.
Al Areen Desert Spa and Resort, to be located behind the Al-Areen Wildlife Sanctuary and adjacent to the Bahrain International Circuit on a  secluded hilltop, is composed of four major components: Oasis Spa Resort; Themed Hotels; Residential Village; and Aqua Park.
A world-class beach hotel is to be built at Zallaq at a cost estimated at between BD20 million ($53.17 million) and BD25 million.  The project is being financed by a group of Bahraini businessmen, headed by J A Zayani and Sons chairman Jasim Abdul Rahman Al Zayani.
The five-star hotel, which will be managed by an international hotel chain, is scheduled for opening by early 2006.  It will be located on the beach previously used by Bapco. A new road under construction will link the proposed hotel complex with the country’s highway network, thus shortening the distance to central Manama. The project will also feature a world-class marina.
Four new four-star properties were opened late last year, increasing the number of hotels in that category to 18.
The existing hotel chains in Bahrain, meanwhile, have launched major expansion plans. These include the estimated  BD6.8 million ($18 million) expansion project for the Diplomat Radisson SAS Hotel and Executive Apartments (see page 72) and the  BD4 million ($10.6 million) block of serviced apartments to be built within the Gulf Hotel complex (see Regional News).
Among other developments, a new equestrian club is to be built in Sakhir by the Wiggins Group. The British company has been awarded a 99-year leasing contract of the club by the Bahrain government within the framework of its privatisation strategy.
The project involves three phases. The first phase will include building units with Arabian horse museum, flats and houses, restaurants and a commercial complex. The second phase will comprise a state-of-the-art horse racing track, bleachers and the main booth. The third phase will include an 18-hole golf course and a luxurious five-star hotel to be managed by an international chain.
The project includes the complete rebuilding of the club premises, which covers an area of about 350 hectares.

Other projects