Two iconic projects that appeared to be highly ambitious dreams just two years ago are now a ground reality for all to see, indicating Bahrain indeed can stand tall among the region’s majors in the construction and real estate sector.

These landmark developments – the Bahrain Financial Harbour and the Bahrain Trade Centre – are focused on building on the nation’s traditional and inherent strengths, its financial and trading hub status in the Middle East.
They also represent mutually-beneficial projects where the private sector can play a key role in furthering the nation’s ambitions.
The Crown Prince Shaikh Salman bin Hamad Al Khalifa identified the private sector as “the engine of growth for our economy and we are doing everything we can to attract and encourage new businesses in the kingdom.”
All indications in fact are that the government will increasingly turn to the private sector to help drive the nation forward with its most pressing needs – the housing and the power sector having been the first to be tackled. A milestone in Bahrain’s history was the privatisation of the Hidd Power and Water station earlier last year – the biggest privatization project in the country to date. The station was sold to a consortium of three international firms for BD279 million ($738 million).
In the housing sector, the government has initiated the new Public Private Partnership scheme and has already invited investors to develop a 1,000-unit residential project in Muharraq under the initiative.
A measure of the importance accorded to these sectors is the fact that they account for the lion’s share of the infrastructure spending allocated in the National Budget for 2007-2008. The Works and Housing Ministry has been allotted BD179.66 million this year and BD176.33 million in 2008 while the Electricity and Water Ministry will have $97.87 million this year and BD99.94 million in 2008. The total spending allocated for infrastructure projects this year is BD318.1 million and BD323.04 million in 2008.
Bahrain will also seek foreign investment to turn the cogs of its industrial sector forward and major channels being instituted to draw in this investment are the newly-opened Bahrain Industrial Park and Bahrain Investment Wharf (see separate report).
While plans have been mooted for a skyscraper in Bahrain measuring 1,022 m – double the Taiwan Taipei 101, which is currently the world’s tallest building at 506 m – the country has its priorities set on four key sectors – housing, education, health and infrastructure.
Among the problems facing the construction sector are the shortage of construction materials, primarily steel and cement, and rapidly escalating costs of these materials. Also the shortage of labour is driving a number of contractors – pressed with tight deadlines – to turn to free visa workers. Many contractors have called for the easing of Bahrainisation targets in the construction industry, which could also cut the use of free visa workers.

Power & Water
Work is under way on Phase III of the Hidd power and desalination expansion project. The expansion project is expected to be completed by the end of 2007, and will include the installation of a 60 million gallons per day (mgpd) desalination plant and its integration with existing assets comprising a 910 MW gas turbine based power generator and 30 mgpd of desalinated water production.
The Hidd power and water station was sold last January to a consortium of three international companies comprising British power supplier International Power, Sumitomo Corporation of Japan and Belgian electricity company Suez Energy International (Suex Tractebel). The operation is expected to meet 20 per cent of Bahrain’s total power needs and 65 per cent of its water demand.
The kingdom’s first independent electricity generating station began commercial operation on schedule last April following the completion of phase I of the project, which made available 470 MW of generating capacity to the national grid. Phase II is scheduled for completion by May 1 and will bring the total generating capacity of the Al Ezzel power plant company (AEPC) to 950 MW. AEPC won the right to build, own and operate the station in June 2004.

Towns & Housing
To address the rapidly growing list of applications for government housing, Bahrain has initiated a BD422 million ($1.12 billion) nationwide scheme involving 23 projects to provide homes for 11,500 families.
Another strategy adopted by the government is developing a number of towns such as the BD1 billion ($2.65 billion) Northern Town off the Duraz coast. The new town, to be built over an area of 1,000 hectares, is divided into 14 islands with a target of providing 15,000 government houses by 2016.
Dredging is currently under way on two of the islands closest to the mainland, comprising 1,500 houses between them, after which construction work is expected to commence this year on these islands.
The government is also encouraging private sector developers to join efforts to address the housing shortage under its new Public Private Partnerships initiative. Among the first such projects to be offered to developers is a 1,000-home residential project in northern Muharraq. More than 5,000 people will be given homes in this community, which will include townhouses and apartments for families, as well as schools, mosques, parks, play areas and a commercial complex.
Other areas will also be made available for the private sector to develop in the future, including plots in Salmabad and Busaiteen among others.
The Al Enma’a House for Real Estate is spearheading the development of a number of residential projects. In addition, to a development at Al Areen Resort and Spa, the realty developer is to build a new BD300 million town in Hidd as well as a township for labourers.
The new town in Hidd is expected to be completed in five years and will include government and private homes, in addition to a five-star hotel. Land for the project, which will be around 1.8 million sq m, will be reclaimed in co-ordination with the Works and Housing Ministry.
The BD12 million ($31.82 million) township for more than 6,000 expatriate labourers will be developed on 67,000 sq m of land in the new industrial park area in Hidd.
Another developer, Dadabhai Construction, has announced plans to launch a new BD20 million waterfront housing and development project in Tubli. The project, spread over 140,000 sq ft, will include six blocks as well as a health club, three swimming pools, a business centre and restaurants.

Airports & Ports
Plans to expand Bahrain International Airport are set to take off with the award of the design contract to JacobsGibb in association with HOK Architects and the local Bahrain consulting firm Mohammed Salahuddin Consulting Engineering Bureau (MSCEB). The BD126 million ($334 million) expansion of Bahrain International Airport will more than double its terminal floor area (see separate report).
Meanwhile, at the new Khalifa bin Salman Port in Hidd, Bokhawa Group is poised to start work on the seaport buildings under a BD16 million ($42.44 million) contract. Work is expected to be completed in the second half of 2008. Reclamation and other maritime foundation works were completed early last year at a cost of BD80 million.

Roads & Bridges
Bahrain and Qatar took a historic step last June with the signing an agreement to begin construction of a 40-km causeway linking them. The 50-month project will cost $3 billion. Plans have also been mooted to set up a supertrain link between Bahrain and Doha.
The Ministry of Works and Housing (MWH) has recently announced its strategic BD425 million ($1.127 billion) road plan that covers all parts of the kingdom. Among these developments are the Bahrain Bay/Bahrain Financial Harbour causeways and highways and the Bahrain City Centre interchange, among others. The MWH has awarded Boskalis Westminster Middle East the contract for a new BD25 million ($66.5 million) causeway which will provide dedicated road access to BB/BFH.
One of the major projects that needed immediate attention was the reconstruction of the two Sitra bridges. Construction work has just started on the new BD64 million ($169.8 million) Sitra bridges, which will replace the existing 30-year-old Sitra causeway that links the main island of Bahrain to Sitra in the northeast. The project, which is scheduled to be completed in 32 months, involves the construction of two three-lane causeways, associated embankment works and flyovers at the Sitra Causeway as well as at Nabih Saleh island in Bahrain. Malaysia’s Gamuda is the main contractor on the project.

RCSI-MUB
Piling work has been completed for the BD10 million ($26.55 million) plus new campus of the Royal College of Surgeons in Ireland-Medical University of Bahrain (RCSI-MUB) at Busaiteen, Muharraq. A main contractor is expected to be announced shortly for the project. The 90,000 sq m campus, which is expected to be operational by October next year, will replace MUB’s current premises in the Seef District.
The MUB’s new location is beside the King Hamad General Hospital, which is also currently under construction. The university and the hospital are key components of the Health Oasis, an international centre of excellence being jointly developed by the RCSI and the Bahrain government.

Science & Tech Park
Bahrain intends to launch a $1 billion science and technology park, the first of its kind in the region. The project is to be implemented by Kuwait Finance House (KFH) in association with the Economic Development Board (EDB).
To be built on a 2 million sq m plot near Durrat Al Bahrain, the park will host small, medium, and large science and technology companies to grow niche markets, and will attract global companies to Bahrain. The target sectors for the new park include new technologies such as clean technology, and areas like renewable energy, water resources, solar energy, environment, information and communications. The project will be executed in three phases.

Commercial/residential
Bahrain’s skyline is now dotted with cranes as never before and the country is seeing the mushrooming of both skykissing towers and low-rise residential villas. While mixed-used developments are going up throughout the country, the main concentration of individual commercial and residential buildings is in the Seef and Juffair areas.
A selection of some of the major commercial, residential and leisure projects in the country include:
Durrat Al Bahrain: The kingdom’s largest planned residential, leisure and tourist resort recently attained a major milestone with the completion of land reclamation for the project’s 12 islands. The cost of the development has tripled to $3 billion from $1 billion as many projects have been redesigned to make it a world-class holiday spot, according to its developer.
The project includes five Petal Islands, six Atoll Islands and a stand-alone island formation – set to house a five-star family resort and a water park.
Over the course of last year, four contracts together worth BD100 million ($265.2 million) were awarded to four local contractors for the construction of 800 villas, which are expected to be completed by the end of this year. Another BD30 million contract for infrastructure development was also awarded.
Meanwhile, work on six bridges and the master plan for commercial projects in the complex have been completed. Durrat Al Bahrain has also unveiled its vision for the creation of Commercial Crescent. World-renowned Australian firm Woods Bagot has been selected to put forth a dynamic concept for the project’s commercial hub.
The 20-sq-km Durrat Al Bahrain is expected to accommodate more than 45,000 full-time residents in addition to some 4,000 visitors a day, upon completion in 2009. It is owned by the Durrat Khaleej Al Bahrain Company, in which the Bahrain government and Kuwait Finance House-Bahrain each hold a 50 per cent stake.
Bahrain Financial Harbour: As work on first phase of the $1.4 billion Bahrain Financial Harbour (BFH) nears completion, a technology blueprint for the landmark waterfront development on the Manama Corniche has been recently unveiled. The interior works for the lift lobbies and common areas are progressing at a rapid pace and achieving a remarkable progress in the installation of air-conditioning, electrical, plumbing, safety and security systems (see separate report).
As the next phase of development, Gulf Holding Company (GHC) has launched the $450 million Villamar at the Harbour, the first residential development within BFH. Located on a site of more than 32,000 sq m, Villamar contains three design elements: the twisting towers, the floating villas and the terraced podium. Scheduled for completion in June 2009, the development will comprise 494 one- to four-bedroom apartments, 54 villas and six penthouses.
Bahrain World Trade Center (BWTC): This a major mixed-use commercial development is expected to be completed in the first quarter of 2007.
Situated on the Manama waterfront and in the heart of the region’s leading financial and business hub, key aspects of work have now been concluded on the complex’s various and unique components. Furthermore, finishing and cladding works as well as the exterior glazing of the building are now in an advanced stage. The BWTC’s 18,000 sq m shopping centre, the Moda Mall, is expected to be opened, at least partially, by April.
The landmark BWTC towers are the first of their kind in the world to use wind energy to power around 11 to 15 per cent of the electricity needs of the two office towers. Wind power will be harnessed by three massive turbines, supported by bridges spanning the two towers.
Bahrain Bay: A Raffles City is set to take shape as part of this futuristic development near the BTWC. Around 75 per cent of the reclamation work on the Bahrain Bay has been completed and work has just commenced on the construction of a quay wall (see separate report).
Bahrain City Centre: Work on Bahrain City Centre, the first integrated leisure and shopping destination in Bahrain, began last year following the award of a BD128 million ($339.3 million) contract to a joint venture of Cebarco and Malaysia’s WCT.
Located in the Seef District, the project will include a shopping complex, the largest indoor water park in the region, an indoor amusement park, the largest cinema in the Middle East, and two hotels (see separate report).
Amwaj Islands: Striking residential projects such as the Tala Island have taken shape at the $1 billion Amwaj Islands. The 30 million sq ft development off Muharraq has also witnessed the launch of a number of projects including the $200 million Amwaj Gateway and the $90 million Lagoon Bahrain.
Piling work is under way on the Amwaj Gateway, a luxurious residential development comprising six 20-storey towers, which are due to be delivered in 2009. The project, being developed by RealCapita and Yara Investment Company, is located at the entrance of Amwaj Islands and covers approximately 360,000 sq ft.
Bahrain-based Ahmed Mansoor Al A’ali Company (AMA) is the main contractor on the Lagoon Bahrain, a one-km-long waterside retail and dining destination
Work is also in progress on the Al Marsa Floating City while the 10-storey Amwaj Plaza 1 became one of the first private residential towers to be completed within the development last year.
Al Areen Resort & Spa: The Banyan Tree Resort and Spa will be the first project to see completion shortly at the Al Areen Spa and Resort. The project has attracted a number of developers from the region, the latest among which the Abu Dhabi Investment House (ADIH), which has just signed up to develop four residential and commercial clusters at a cost of $335 million (see separate report).
Riffa Views: Riffa Views Signature Estates has signed an agreement with Nass Contracting Company and Braemar Golf Development to build a world-class 18-hole championship golf course enabling the course to be ready six months ahead of schedule. As a core feature of the luxury residential development, the signature golf course being designed by the celebrity international golf champion Colin Montgomerie is set to be one of the world’s top golf facilities.
The 900-villa property developer has also struck a BD5 million joint venture agreement with Seef Properties to design, build, and manage the Riffa Retail Centre – a new community retail facility – and entered into an agreement with US-based International Schools Services (ISS), a leading provider of high quality educational services worldwide, to develop a world-class 800-student school within Riffa Views.
These projects add to the wide range of facilities that distinguish the Riffa Views community, which include a country club, retail outlets, mosques and a planned new 18-hole PGA championship golf course.
Lulu: Marine and infrastructure works are currently in progress at the new $1.25 billion Lulu Island luxury housing project, being built on the coast of Manama. The first residents are expected to begin moving by 2009. The project will house 39 residential buildings and include 1,217 apartments with waterfront or lagoon views (see separate report).

Other projects
• Ithmaar Bank has announced the launch of three major development projects in Bahrain, costing nearly $2 billion. The projects include: Sarai Project, a Health Island and the development of Al Jazair Beach. A sum of $800 million will be spent, in co-operation with the Economic Development Board, on the development of Al Jazair Beach, to create a world-class leisure and family tourism facility, while around $1 billion will be invested in the Health Island, which will incorporate a health resort containing specialist hospitals and hotels. The $175 million Sarai project will consist of two towers in Seef District – one being a hotel and the other an office tower.
• Work on the Sheikh Khalifa Sport City in Isa Town is expected to be finished in May. The BD9 million ($23.87 million) contract is being carried out by Mohammed Jalal. The city includes a football stadium, multipurpose sports hall, world-standard swimming pool, central tennis court, parking lots, gates and a road network. A multipurpose sports hall is also being constructed to accommodate 3,600 people.