09 October 2012
Two major trans-national road projects in the Arab world - the USD 6 billion Qatar-Bahrain Causeway and the USD 3 billion Egypt-Saudi Arabia bridge - continue to be on hold as they await political decisions.

Egyptian transport minister Dr. Mohamed Rashad told Zawya his ministry is awaiting the green light from both the Egyptian and Saudi governments before it can submit the project's feasibility study and possible funding methods.

The link between Qatar and Bahrain remains suspended as it goes through multiple redesigns and cost evaluations.

Dr. Rashad said the plan for his country's road link with Saudi Arabia has been enthusiastically welcomed at the highest political levels. At first, the Egyptians were worried about the environmental impact of constructing the link, but enthusiasm returned after Spain and Morocco built a link across the Strait of Gibraltar, the minister said.

The subject was discussed during the recent visit of Egyptian president Mohamed Mursi to Riyadh, Dr. Rashad said. However, it is still unclear whether the Egypt-KSA link will be bridge, a tunnel or a combination of the two, the minister told Zawya.

Transport ministry spokesperson Mohamed Shahat confirmed that the decision on the project would need to be taken at the political level, after which the ministry would conduct the feasibility study. The study itself is expected to cost more than EGP 100 million, Shahat told Zawya.

Jamal al-Bayoumi, secretary general of the Arab Investors Union, suggested that while the construction of such a link would have economic benefits, there may be some fear at the Saudi end of Egyptians illegally emigrating to the oil-rich Arabian Gulf nation. This perspective changed, however, after the bridge between KSA and Bahrain was constructed, he said.

At the Egyptian end, there were fears that the link would impact tourism in Sharm el-Shaikh, al-Bayoumi added. The link is expected to be located 18 kilometers south of Sharm el-Shaikh.

Qatar-Bahrain Causeway

The project to link the two Gulf nations of Qatar and Bahrain did progress further than its KSA-Egypt counterpart, but is currently on hold as the designs and costs are being revisited, a senior official told Zawya on condition of anonymity.

"It is true that the launch of the project is not expected soon but it is officially still on between Qatar and Bahrain," the official said.

A preliminary design by Danish firm Coy was selected from among 10 received from specialized international companies. The construction contract was awarded to a consortium of French company Vinci Construction Grands Projets; German company Hochtief; and Greece's Consolidated Contractors International.

Nasser Haidar, member of the Economic Affairs Committee in the Qatari Shura Council, told Zawya: "The Qatar-Bahrain Causeway project is suspended but not cancelled." He explained that the project's cost and other funding issues are behind the successive postponements.

One analyst suggested that a 15% increase in the cost of construction materials since the project was first analyzed may have been the reason for its postponement. The causeway will link the north-western coast of Qatar through an area known by Ras Asheireej, to the eastern coast of Bahrain through Askar, with a total length of 40 kilometers.

Economic Benefits

Qatari economist Abdullah Al Sayyed told Zawya: "The causeway project would have led to an unprecedented flurry of economic activity, particularly real estate activity for both countries." He estimated the volume of real estate investments and economic activity resulting from the causeway at around USD 20 billion.

It would also contribute to the revitalization of the initiatives toward urbanization in both countries, Al Sayyed said, as well as facilitate the movement of people and goods and promote tourism movement Saudi Arabia, Qatar and Bahrain.

As part of an earlier plan for the causeway, railway lines laid along it would become part of the GCC Rail project that the Gulf countries want to implement by 2017 at a cost of around USD 25 billion.

© Zawya 2012