A THEME park that owed the Bahraini government almost BD1 million in late payments has reached an out-of-court settlement with authorities.
The Adhari Park Development Company had racked up outstanding rent and municipal bills worth BD900,000 since 2010.
However, one third of the amount has been waived as part of an agreement reached with the Capital Trustees Authority, which previously launched legal action against the firm.
The company has agreed in writing to hand over BD300,000 immediately, which it has already done, and committed to pay BD300,000 in instalments over the next two years.
In its meeting yesterday the Capital Trustees Authority officially dropped its claim on the remaining BD300,000 as part of the settlement.
It had originally threatened to tear up a 30-year contract with the company that runs until 2038 and filed a lawsuit to recover the money at the High Administrative Court, which has now been withdrawn.
The decision has been supported by the Cabinet and is intended to avoid closure of Adhari Park, which is managed by the company – a consortium of investors.
“We could have easily put off the deal and demanded that all BD900,000 gets paid, but that’s not good for business,” said Capital Board of Trustees chairman Mohammed Al Khozaie.
“The other option would have seen the contract torn up and the place shut down until a replacement management company was found and started operations.
“It would have been at least two years.”
He also said the company had not received preferential treatment in having a third of its debt wiped out, explaining that other companies had previously benefited from reduced fees as part of efforts to stimulate the private sector following the upheaval of 2011.
“Businesses across Bahrain had fees reduced for around two years to recover from the 2011 unrest, besides other incentives,” he said.
In addition, he explained it had taken much longer for Adhari Park to generate revenues in the wake of the unrest.
“It took Adhari Park until last year to get a pickup in business after regaining its attractiveness, as police barricades close to its entrances were finally removed,” said Mr Al Khozai.
He also hoped the decision would allow the management company to invest extra finances into the park.
“Adhari has what it needs to be the favourite destination for Bahrainis, GCC nationals and expatriates, mainly families,” he said.
“But it has to rapidly introduce new advancements in the field of leisure and entertainment.
“Now the deal is approved they can go ahead with whatever suggestions they have presented, besides other ideas that we gave them.”
The BD15 million theme park opened in April, 2008 as part of plans to revive the area.
It was constructed by Al Khaleej Development Company (Tameer) and Kuwaiti Markets and Commercial Complexes Company, which then formed a company with three other partners.
Part of the historic park was reopened to the public in September 2003 after the ancient spring and surrounding areas were renovated and a mosque was built at a cost of BD600,000. Officials from the Adhari Park Development Company were unavailable for comment yesterday.
mohammed@gdn.com.bh
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