A BD1 billion ($2.65 billion) development on the Manama coast has been given the green light.

Water Garden City, dubbed the 'capital of the capital', received unconditional approval from Manama Municipal Council.

The developer behind the ambitious project hoped it signalled a major turning point for the country's construction sector.

Al Bilad Real Estate Investment Company general manager Zeyad Janahi claimed the development could spark a new construction boom, with opportunities aplenty for designers, contractors and related-industries.

'Coming at a time when the entire construction industry is facing difficult times, this will act as a real push,' he told the our sister newspaper Gulf Daily News (GDN).

'It will help the real estate sector overcome the difficulties it is facing and there will be a boom once again.'

The GDN has reported delays at several major construction projects over the past year - largely due to the global financial crisis and a regional real estate slump.

However, Janahi said he was confident enough investment could be generated to fund development at the site, which is located next to Bahrain Financial Harbour.

'We have received a lot of interest with several well-known names having come forward to invest in the development as partners.

'They will come and develop their parts and we shall go on from there.'

Ninety per cent of land reclamation has been completed and a contract awarded to a company to build a quay wall.

'Work is well and truly underway as we speak and we hope the first utilities will be connected to the area in the next four to five years,' Janahi added.

The development is located to the north of Bahrain City Centre, Seef, and covers an area of around 600,000sqm.

It is expected to feature a public marina and up to 100 multi-storey buildings, containing everything from hotels to private schools and homes to shopping centres.

'They (councillors) have approved the project at the most critical time - the right time - and given the industry the required push.

'We are also very happy with the way government officials have helped us and ensured all has gone well.'

Al Bilad did not harm its cause by coming to the rescue of fishermen landlocked by another development in December 2008, covering the costs of a temporary jetty for them until a permanent location could be found. It is also covering the costs of new roads, sewerage, water and electricity networks for the development.

'The project fulfils all technical requirements and is one of the most organised in acquiring licences and ensuring that the marine life and the environment are protected,' said council technical committee chairman Hameed Al Basri.

'We have no conditions that we want developers to fulfil, although we hope they will extend their favour by granting 60 fishermen a permanent jetty within the project.'

The project has been designed by British firm HOK and is its first foray into Bahrain.-TradeArabia News Service