Bahrain Bay looking forward

Bahrain Bay CEO Bob Vincent is still positive.
Bahrain Bay's CEO Bob Vincent says despite a tough year, the US $2.5 billion mega project has delivered on its infrastructure requirements and greater momentum is forecast for 2010.

There is no doubt that 2009 has been tough for developers across the region and while some have vanished and others drastically under-delivered on promises, Bahrain Bay is keen to tell the world it has weathered the worst of the storm.

Last week, the master developer held a press conference and site tour for the region's media to deliver three key messages: infrastructure for the project is being delivered on target; all third party developers are still onboard; and several will start construction in 2010.

The US $2.5 billion (BD943 million) project is located off the north eastern coast of Manama, occupying prime real estate beside the upcoming Bahrain Financial Harbour and in front of the iconic World Trade Centre.

With a population of around 13,000 and more than 40 buildings and towers designed by leading architecture firms, Bahrain Bay is expected to not only become an iconic development, but will help change the perception and function of Manama, as well as the country itself.

In mid-2008 the development was hurtling along at the breakneck speed considered normal during the peak of the construction boom. The 430,000m² of land reclamation had been completed, infrastructure work had started and the project's three anchor developments had begun construction on site.

By the end of 2009 it was expected that these projects, and several others, would be well into construction, but only one has remained relatively on track while the remainder went back to the drawing board to redesign according to new market expectations.

Two of the anchor developments have both suffered significant delays. Raffles City Bahrain completed its substructure in mid-2009 before delaying the tender for main construction, while the Four Seasons Hotel stopped work onsite after piling.

The one exception is the $150 million headquarters for the Arcapita Bank, the third anchor development. The headquarters covers 49,000m² and will offer 18,000m² of office space. Construction started in March 2007 and is expected to be finished by the end of 2010.

For the public regularly passing by this prominent project, the visual progress of Bahrain Bay in 2009 has been somewhat of a letdown following the hype and momentum of 2008. But CEO Bob Vincent is keen to set the record straight.

"Everything we expected to deliver, we have," he says.

"We began 2009 knowing it would be tough, but we have still had a successful year and we believe that has put us in a very good position for 2010.

"That could be a factor of luck, but it is also a factor of good management."

Overall Vincent says the economic downturn has probably set Bahrain Bay back by between six to 12 months, but he is quick to point out that the expectations set in 2007 were probably too high.

"The thing you have to keep in mind is that you can't consider 2007 or 2008 as a normal construction and development cycle; it was the peak of a boom period," he says.

"So while there has been slippage from the expectations of 2007, Bahrain Bay has not fallen behind what would be considered a realistic and normal development programme.

"It's a very big project and it's not uncommon for a project of this size to be developed over two or even three economic cycles."

Source:arabianbusiness.com/