A multi-million-dinar financing agreement to advance Phase Two of the Shaikh Jaber Al Ahmad Al Sabah Highway project has been unanimously approved by MPs.
They described it as a strategic investment that will transform one of Bahrain’s busiest transport corridors and deliver wide-ranging economic and social benefits.
The proposed law, now referred to the Shura Council, ratifies a framework agreement between the Government of Bahrain and the Kuwait Fund for Arab Economic Development, under which concessional loans of up to 70 million Kuwaiti dinars (around BD85m) will be provided.
The total cost of the second phase is estimated at BD128.6m, with the remainder covered by the state budget.
Works Minister Ibrahim Al Hawaj revealed that Phase Two of the Shaikh Jaber Al Ahmad Al Sabah Highway project is expected to take less than six years, with efforts underway to shorten the timeline through close co-ordination with all service authorities.
“This is a strategic project within an integrated national plan to develop the road network,” he said. “The design considers vehicle movement, pedestrian flow and safety, and aims to achieve free-flow traffic along the entire corridor from Hidd to Bapco junction without stopping.”
Parliament’s financial and economic affairs committee chairman Ahmed Al Salloom said the agreement represents far more than a road expansion.
“This project is about supporting economic activity, improving traffic safety and enhancing connectivity between key governorates,” he added. “The committee found the financing terms to be favourable and appropriate for a project of this scale.”
He added that the loans carry concessional conditions, including a 3.5pc interest rate, a grace period of up to eight years, and repayment over up to 20 years. “These are among the best financing terms available for infrastructure projects,” Mr Al Salloom noted.
“They reduce pressure on public finances while enabling the kingdom to deliver a mega-project with long-term economic returns.”
Financial and economic affairs committee rapporteur MP Mohammed Al Rifai cited traffic studies that show the upgrades will increase road capacity by more than 65pc and cut waiting times at intersections by up to 90pc.
“The second phase will widen the highway from three to four lanes in each direction over 11km, construct service roads and parking areas, and upgrade drainage, lighting and traffic systems,” he said.
“It also includes five flyovers and the expansion of Shaikh Salman Al Fateh Highway to four lanes over a two-kilometre stretch.”
During yesterday’s session MPs approved three proposed amendments that target the 1976 Social Insurance Law, the 1976 Military Pension Law, and the 1975 Government Pension Law, each seeking to expand pension-related benefits in response to rising living costs.
They also aim to increase the marriage grant paid to widows, daughters, granddaughters and sisters entitled to pensions from 15 times the monthly pension to 24 times – with a minimum of BD1,000.
MPs argued that the existing provisions have remained unchanged since the 1970s and no longer reflected current economic realities.
The three amendments have been referred to the Shura Council for review.
Meanwhile, MPs yesterday insisted on their approval of a draft law exempting first-time Bahraini homebuyers from property registration and transfer fees – despite its rejection by the Shura Council.
The proposed amendment targets an article of the Real Estate Registration Law of 2013 and would exempt citizens purchasing a residential property for the first time from several registration and transfer fees currently imposed under the law. It has been referred to the Shura for a second vote and if rejected would be shelved.
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