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	Bahrain		Info-Prod Country Guide
CHARACTERISTICS   INDICATORS   INVESTMENT ISSUES   PROJECTS   PROSPECTS

Current and Projected Projects General Bahrain is rapidly approving new industrial projects in an attempt to diversify its production base. During the first three months of 1996 alone, the Oil and Industry Ministry approved sixteen new projects worth US$ 16 million. Additional projects valued at US$ 14.5 million were approved in principle and are currently waiting for final licenses. During 1996, approved projects include a US$ 600 million power and water plant, a port and a bridge to connect the new industrial and free trade zone area at Hidd with Bahrain's Salman Port. Additionally, a number oflocal and international banks have committed to finance a major portion of a proposed sponge iron plant, and the Korean conglomerate Hyundai is in negotiations to establish a pipe unit. Build Operate Transfer Use of the build-operate-transfer (BOT) method on power and water schemes was under active consideration during 1995-1996, but due to a dispute with the potential provider, the government decided against the project. Instead, the government will remain a buffer between the provider and the population, buying the water from the private operator and then passing it on to the consumer. The government intends to maintain subsidies, and, thus, expectations that the injection of private sector competition would expose true costs, push up tariffs and push down budget deficits are unlikely to remain realized. Franchising Fast food franchises are highly sought after by local contacts. Many of the major food franchise companies are operating presently in Bahrain. There is also an increasing interest in non-food, service-sector franchises with proven international attractiveness. A local sponsor is required to set up a franchise in Bahrain. Previous Chapter Contents Menu Next Chapter

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