A new location is being finalised for a BD64.78 million ($171.83 million) project in Bahrain that will include a state-of-the-art hospital, luxury hotel, deluxe residential apartments and a shopping complex.

It follows directives by HRH Prime Minister Prince Khalifa bin Salman Al Khalifa that land adjacent to the Muharraq Municipality headquarters in Busaiteen should not be used and kept for possible future expansion plans.

Muharraq Municipal Council chairman Abdulnasser Al Mahmeed said councillors backed the decision.

"We felt the Premier was right and the land should be kept for future municipality usage instead of turning it into an investment," he said. "The land is the property of the municipality and should be kept for the future."

Al Mahmeed revealed a list of possible locations would be compiled and discussed among councillors following the summer holidays.

Land that falls under the municipality property will be earmarked and studied to finalise which one can host the project.

Officials earlier revealed it had the potential to provide a monthly municipal income of BD202,000.

"Land which falls under Muharraq Municipality property will be listed and studies will be conducted to see which one can host the major project," said Al Mahmeed.

"Following this, construction can go ahead. The investor will be paying a monthly rental fee to the municipality as the land is owned by the latter."

The project near the municipality headquarters was to feature a three-storey building for the Muharraq Municipal Council.

Our sister newspaper the Gulf Daily News reported in April that it would replace another proposal by an investor who had been waiting to build a multi-million dinar development on municipal land, despite him being given an initial verbal agreement to go ahead. The council originally approved leasing the land adjacent to the municipality's headquarters to Enjaz Capital.

However, Municipal and Urban Planning Affairs Minister Dr Juma Al Ka'abi awarded it to Faoud Shuwaitar Real Estate Agency (BCGCM-Bahrain).

Enjaz's bid was for a BD50 million shopping complex that had offices for the council with a monthly municipal income of BD70,000.

Councillors later agreed to back the second bidder, urging the ministry to provide them with legal advice on whether the first investor could take them to court or demand compensation - despite no contract being signed.

BCGCM was also given six months to come up with a new presentation for the project after councillors found that the property heights they proposed violated building requirements in the area. – TradeArabia News Service