Bahrain Bay CEO Bob Vincent sets the record straight on the development's progress and discusses the challenges in today's stormy economic climate.
Is Bahrain Bay on track?
Bahrain Bay continues to run on programme. The construction of its infrastructure work is on schedule; we're running ahead of the curve in terms of our investor returns. Third party developers are also on track.
What flexibility has been given to third party developers?
We have had to face up to the realities of the market in our expectations on delivery. We have granted flexibility in land payment schedules, extensions of performance criteria such as submission of design and development, and delayed construction start dates. All developers have been assessing their business plans - a normal response to these conditions.
What is the revised completion date for the project?
The original completion date was 2013 but it's probably going to be more like 2015 before the project is realised.
Is Bahrain Bay facing any financial problems?
No. There's a very strong underpinning of the shareholders to follow through on the commitment of the project and that means they've got their cash on the table. They're committed to sensibly using that money over time so that the project is actually delivered. This ensures that the project has time to mature, investors have the opportunity to get a realistic return and that the co-developers have the best opportunity of being sustainable.
Will the concept of Bahrain Bay be delivered as it was first conceived?
As is the case with any master development plan, it must demonstrate some level of flexibility to change with the markets over the life of the project. Some of our architecturally iconic developments have changed because the markets won't stack up any longer. There has been a paring back in some of the design criteria from some of the developers. But the projects will be built. That's a much better outcome than hanging onto an unrealistic design expectation that will never be built.
Has the iconic design of the Four Seasons hotel changed?
Yes, the design changes that have occurred are primarily related to the height of the building and the uses associated with the hotel. The height of the building has changed as it was extremely expensive to build in its proposed configuration. The shift in demand justified a change in design - that's a realistic commercial assessment.
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