Bahrain Ports To Be Privatized

VOL. XLV

No 27

8-July-2002

BAHRAIN

Bahrain Ports To Be Privatized

The Finance and National Economy Minister of Bahrain, 'Abd Allah Saif, has announced that the government is inviting private sector investors to form a company with an authorized capital of BD100mn ($263mn) to run the kingdom’s Mina Salman port, and the Khalifa bin Salman port, which is scheduled to become operational in 2005. The project is open to both Bahraini and non-Bahraini individual and institutional investors, and the Bahraini Government will take up any equity not subscribed by private investors. The new company will be responsible for managing the ports, while certain services such as customs will remain in government hands. The land and infrastructure of the ports will be leased from the government on a long-term contract. The Mina Salman port was opened in 1961 and was expanded in 1976 and 1979. Management of the port could be transferred to the company as early as the beginning of 2003. According to Mr Saif, the privatization of the ports is part of the government’s program of general economic reforms, which has already seen Bahrain commit itself to privatizing the public transport system, the telecoms sector and the electricity industry. “The overall purpose is to enable the private sector to take a leading role in the country’s economy,” he said.