The announcement gives detail to a broad strategic projects plan announced on Oct. 31 that the small Gulf state said would catalyse over $30 billion of investments. No details have been given yet on the source of funding.
With the five planned cities off the coast at Fasht al-Jarm, Suhaila Island, Fasht al-Azem, Bahrain Bay and the Hawar Islands, the island state with a population of around 1.5 million expects its urbanized area will expand by 60%.
The announcement by Deputy Prime Minister Khalid bin Abdulla Al Khalifa carried by state media said infrastructure projects include a 109km Bahrain metro system, a 22.5km road and a long-planned second causeway connection to economic powerhouse Saudi Arabia.
In announcing the new growth and fiscal package last month, Bahrain delayed plans to fix its heavily-indebted finances following a hit from the pandemic. It pushed a zero-deficit target back by two years to 2024 from 2022 and increased the value-added tax to 10% from 5%.
Bahrain’s public debt climbed to 133% of gross domestic product last year from 102% in 2019, the International Monetary Fund said. Kuwait, Saudi Arabia and the United Arab Emirates in 2018 extended a $10 billion aid package to Bahrain.
Seeking to boost visitors, the new projects include tourist resorts and an exhibitions city intended to be the region’s largest around a Bahrain International Exhibition and Convention Centre.
The plans includes an aluminium industrial region near the existing Aluminium Bahrain (Alba) plant which contains one of the world’s largest aluminium smelters, and a commercial, manufacturing and logistics zone built in partnership with the United States.
Within the $30 billion plan is an existing program to modernise and expand the refinery capacity of state-run Bahrain Petroleum Company (Bapco) from 267,000 to 380,000 barrels per day.
Source: Economy - investing.com
