A $48-million loan for Bahrain from the Islamic Development Bank was approved by the Shura Council yesterday (July 5), despite members expressing concern that the total cost of repaying it could reach $70 million.

The money will be used to redevelop homes in historic neighbourhoods in Muharraq as part of a multimillion-dinar heritage scheme, said a report in the Gulf Daily News (GDN), our sister publication.

Although the bank does not normally support such initiatives, it has made an exception based on predictions of the financial benefit expected from the Pearl Route, which has been granted World Heritage Site status by the United Nations.

The loan will involve buying properties from homeowners and turning them into cultural attractions.

A total of BD10 million ($26.5 million) has already been set aside in the new national budget to fund the Pearl Route project, which highlights Bahrain’s traditional pearling industry.

The Bahrain Authority for Culture and Antiquities, which replaced the former Culture Ministry, has told MPs that another BD10 million ($36.5 million) has been pledged by the private sector.

The $48-million loan will now be approved by His Majesty King Hamad after MPs approved it on Thursday.

“With limited available valuable and significant attractions (in Bahrain), this site has true global appeal and needs immediate preservation and for that the loan is necessary,” said Shura Council financial and economic affairs committee vice-chairman Dr Abdulaziz Abul.

“The loan, despite being repaid at more than $69 million, will cover itself when tourists start converging on the location.”

A total of 750 homes have been shortlisted for inclusion in the scheme, said legislative and legal affairs committee chairwoman Dalal Al Zayed.

“The project has been delayed because the necessary budget was not available and now, with us pushing it ahead, it is on the right track and could open new international doors for us,” she said.

“Each home is being treated as an individual case and there are 750 homes shortlisted.”

The Culture Ministry was initially supposed to renovate 200 homes, preserve 17 buildings and create 11 open spaces in the historic neighbourhood where people involved in the pearling industry used to live and trade. - TradeArabia News Service