Financial close for PPP housing project in Bahrain
- Ithmaar Bank
Naseej, Bahrain's real estate and infrastructure company, announced on October 26th that it has got financing for the region's first ever housing public private partnership (PPP).
The announcement, by Naseej Chairman Khalid Abdulla-Janahi, follows the completion of financing agreements for the almost $450 million project with Ithmaar Bank.
Ithmaar Bank Acting Chief Executive Ahmed Abdul Rahim said:
"As a pioneering Islamic retail bank, Ithmaar recognizes its responsibilities both to its shareholders and to the community in which it operates. These are responsibilities we take very seriously - and we are delighted to be a part of this ambitious project."
The PPP project involves the development of more than 2,800 social and affordable housing units in two strategic locations: Al Madina Al Shamaliya and Al Luwzi. It is the largest housing project ever to be developed in Bahrain in partnership with the private sector.
Naseej Chairman said that work on this PPP started three and a half years ago and that Naseej has invested more than $7 million in the PPP before the project materialize.
Following the signing of the Project Agreements with the Ministry of Housing in January 2012, Naseej incorporated a wholly-owned project company, Sharaka for Housing Projects Company, to execute the project and assembled a team of large contractors, namely, Cebarco Bahrain, Chase Manara and Terna to undertake works on different sites of the project. Cebarco Bahrain will undertake works in Al Madina Al Shamaliya Island 13, Chase Manara will be responsible for developing Al Madina Al Shamaliya Island 14; and Terna Contracting will be responsible for the works in Al Luwzi site.
The consortium of international and local consultants include Ithmaar Development Company as the Development Manager, Hill International as the Project Management Consultant, AECOM as the Master Planners, Housing Units Design Consultants & Landscape Design Consultants, Ansari Engineering Services as Housing Units.