Future of $545m Bahrain beach resort in doubt - paper

UNPAID BILLS: Subcontractors are allegedly owed millions of dinars for work done on Salam Bahrain Beach Resort and Spa.

A $545m beach resort on Bahrain’s south coast is reported to be hanging in the balance with construction at a standstill for months and millions of dinars worth of bills unpaid.

The Gulf Daily News reported that “hundreds” of companies are still waiting for payment for work done on the Salam Bahrain Beach Resort and Spa.

The paper reported work was allegedly halted in January by the developer Sama Dubai, quoting sources close to the project.

"The project, in Zallaq, was intended to be a beach resort, but very little has been done on it ever since it was launched more than a year ago," sources told the paper.

"In fact, whatever there was that had been built is now literally crumbling."

The main contractor is Bahrain-based Nass Corporation and its joint venture partner Murray & Roberts.

Sources told the paper that “hundreds” of subcontractors are owed money by the firms, with some not receiving payment for three months.

"They have been talking about release of payments, but nothing has been done yet," said one official on condition of anonymity.

"Hundreds of subcontractors are owed money by Nass, Murray & Roberts - the main contractor.

"They (Nass, Murray & Roberts) in turn have not been paid since last November and the project has been halted since the end of January. We have not been paid for three months.”

Both Nass and Salam Dubai declined to comment, according to the report.

The resort, once completed will consist of a luxury beach hotel, restaurants, spa and wellness centre, fitness centre, hotel villas, freehold apartments, and a harbour.

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READERS' COMMENTS

Salam Beach Resort & Spa
Posted by Rory, Delhi, India on Tuesday 21 July 2009 at 15:14 UAE time


Surely the last para of.... "The resort, once completed will consist of a luxury beach hotel, restaurants, spa and wellness centre, fitness centre, hotel villas, freehold apartments, and a harbour".... should read "If completed"

Picture Correction pls
Posted by Fatima, Bahrain on Monday 20 July 2009 at 18:10 UAE time


Dear Arabian Business,

(This is not a comment.)

Im a regular reader of your site and just wanted to update you on the picture that you have used for this article.

Bahrain's currency was changed last year and those notes in the picture are old currency notes. Therefore, to keep your site updated and for the intergrity of the material, you'd want to keep that in check !!

Good Luk !!
Regards
Fatima

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