Development of Manama hit by cash crunch: Al Umran
Manama : Budget restrictions on Manama Municipal council has delayed the development of Manama, Deputy Chairman Mazen Ahmed Al Umran has said.
Financial limitations hindered the council’s plan to further develop the capital city, Al Umran told DT News. A number of key projects have been stalled due to lack of funds, he said. Although the capital city makes a considerable amount of revenue, majority of it were transferred to the Ministry of Finance. Of the BD42 million that the capital generated last year, BD34.2m was transferred to the central fund, Umran said.
Projects affected by limited funds include the construction of new Manama central market and renovation works of markets in Jidhafs and Sitra, he said. These projects have been delayed because of cash shortage. “It’s high time that something should be done for the central market. Yes, we have done the renovation but it’s better to build something entirely new because the market is very old. We are also planning to renovate the markets in Jidhafs and Sitra,” he said.
“The biggest hurdle that we face now is regarding the allotted amount. The budget has shrunk compared to the initial stage. We have started the projects in 2015 and not long after, the drop in oil prices took a toll on the economy and that means we have less money to work with. However, the capital city itself is a money generating area. It has generated over BD40m a year,” he said.
“The main sources of income are the fees paid by building owners and malls. Out of BD42m, we were allocated BD7.8m and the rest of the amount went to the ministry. We are getting less than 20 per cent of the revenue. Out of BD7.8m, BD6.6m has been used to pay salaries. The remaining amount is insufficient for the projects,” Umran
explained.
He said that the project to renovate the Manama souq was also delayed due to cash crunch. “We want to enhance the old Souq, tourism is linked with tradition and culture. When tourists visit Bahrain we want to ensure that they never miss the cultural aspects of Bahrain. A renovated souq will definitely provide the visitors a detailed history of old Bahrain,” the Deputy Chairman said.
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