The $2.5 billion landmark waterfront community, Bahrain Bay, will invest $5 billion into the national economy over the next decade, it was declared.

Chief executive officer Bob Vincent, however, said the completion of the project is facing '12 to 18 months delay' due to problems, including financial conditions, absence of a market and some product re-design, faced by third party developers.

'We will have everything ready by the middle of next year for all the developers to move in,' he told a Press conference at the development's marketing office, off Manama coast.

'Many of them are on site, while Arcapita Bank is readying to move in during the first quarter of 2010.

'Arcapita and Al Baraka Banking Group have elected to relocate to Bahrain Bay to establish their new corporate headquarter buildings.' He said their decision was supported by a commitment by Bahrain Bay to instal a 'future proof' information communication technology fiber optic network to ensure fastest and most secure data service.

'We are committed to Bahrain's Economic Vision 2030 and the national economy.'

'To date, the project has invested more than $230 million in infrastructure and utilities. This includes the first two 66kV power stations handed back to the government, while two more 66kV stations involving $44 million are nearing completion.' He said the investment being made by Bahrain Bay will be economically sustainable and in perpetuity.

'In addition to the expenditure on power requirements, Bahrain Bay has built its own district cooling and sewer treatment plants at a cost of $105 million. The internal bridges will be completed within six months at a further cost of $12 million.'

'By the time the project is completed, we would have spent about $50 million on beautification of the public spaces and waterfront areas.' He said Bahrain Bay will also build three mosques at a cost of $25 million.

'These infrastructure and public space will be maintained at no cost to the government through a commercial deed which commits the investors to a sustainable funding arrangement.'

Vincent said by providing a prestigious location with world's best amenities and services, Bahrain Bay is demonstrating direct support to the financial services sector, which is a vital and growing element of Bahrain's economy.

'This approach to development has been recognized by the industry and Economic Development Board as they continue their efforts to attract foreign investment into the country.' He said the Four Seasons Hotel had also gone in for a re-design to build a 65-storey property as opposed to a 85-100 storey project earlier. Other hotels will be Rotana, Ascot and Shaza.

Vincent said in September, Bahrain's banking assets stood at $274 billion, with 146 banks and 173 insurance companies.

'We envisage that financial institutions will form an important core of businesses that will locate in Bahrain Bay, helping to create a dynamic centre of financial services excellence for the region and jobs as well as generate wealth for individuals and the national economy.

'A second key growth sector going forward will be the tourism industry. Bahrain Bay has secured investor commitments for new hotels to be developed within the project.' Bahrain Bay deputy CEO Abdulla Al Dossary was present.

Source: TradeArabia News Service