Bahrain Circuit Funding Gets Parliament Approval

The construction of a circuit to host a Formula One race in Bahrain in 2004 is back on track following a decision from the Shura Council on Monday.

The project had hit trouble earlier this month when a parliament committee voted against the funding, with chairman Isa Al Mutawa claiming the race would "fly in the face of Islamic values," saying also that it would bring unwanted tourism and prostitutes to the kingdom.

The MPs had rejected a request to invest $200 million (USD) into the $500 million project.

However, the council on Monday approved the funding plan, including the $200 million necessary for the construction of the state-of-the-art circuit. The construction of the track is, according to Bahrain officials, well ahead of schedule.

Thirty-six of the 40 council members voted in favour of the project, with the funding coming from a $500 million bonds issue. The bonds were issued by the Finance and National Economy Ministry last month.

"We faced stiff competition from other countries but we managed to win the project, which makes Bahrain an important regional centre in the motoring world," Finance and National Economy Minister Abdulla Saif told the Gulf Daily News. "Over the past few years economic growth has averaged four and a half per cent annually.

"This is a decent level of growth by most countries' standards but our aim is to reach five and a half to six per cent. In order to keep our economy growing and improve the standard of living of Bahrainis, we need major developmental projects."