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Mon 28 Sep 2015 06:37 PM

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Bahrain investor seeks $13m compensation over cancelled theme park project

Contract to carry out $53m redevelopment of Muharraq Grand Garden shelved by municipal over 2-year delay

Bahrain investor seeks $13m compensation over cancelled theme park project
Image for illustrative purposes only.

One of the investors behind a theme park due to be built in Bahrain has said he will seek $13 million (BD5 million) in compensation over his contract being terminated.

Gulf Daily News reported that Muharraq Municipal Council has cancelled the contract to carry out a $53 million (BD20m) redevelopment of Muharraq Grand Garden because of a two-year delay in construction starting.

The overhaul of the garden included the construction of a theme park, ice rink, indoor sports arena, aquatic museum, karting track and three-storey shopping centre.

Bahraini investor Fouad Shuwaitar told the newspaper that he will seek $13 million in compensation if the contract has been cancelled, after he claimed that he had not received any official notice from the Works, Municipalities and Urban Planning Affairs Ministry.

He said the delays were down to a failure on the local government’s part to relocate key sewage and water infrastructure from beneath the site.

“It is not my fault that the garden is not prepared for us to carry out work,” he told the Gulf Daily News.

“The place has key sewage and water infrastructure underneath that needs to be removed, but for two years it has remained untouched. We told the council that we would do the work (to remove the infrastructure) instead of the concerned ministries at a cost of BD300,000 ($795,900), in exchange for an extension to our lease, but it refused saying the contract couldn’t be changed.”

He said he has receipts for over $13 million that he has invested, as well as a $530,000 (BD200,000) deposit with the municipal.

Shuwaitar, who previously had a group of GCC partners involved in the project, later had India-based Golden Globe Trading and Consultancy Services on board after the initial partners withdrew from the development.

A previous plan by a Kuwaiti investor in 2007 to develop the garden into a miniature Disneyland was abandoned due to the global financial crisis.

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