Bahrain deal signed

Press, 14 April 1978, Page 7

Bahrain deal signed

PA Wellington. The lease agreement for the multi-million dollar joint )ort facility in Bahrain was formally signed at the first meeting” pf the full board of the Bahrain New Zealand Trading and Storage Company (8.A.N.Z.) in Wellington.

8.A.N.Z., formed in November last year by New Zealand and Bahrain, plans to build about 12 warehouses and coolstores capable of holding more than 8000 tonnes of primary produce.

Signaturies to the agreement included the Chairman af the New Zealand Exportimport Corporation, (Mr H. W. Revell), the Bahraini Minister of Development and 'lndustry (Mr Yousef ShiInawi), and the chairman of | B.A.N.Z. (Mr Ibrahim Eshaw). B.A.N.Z. plans “free zone” (berthage and stoage facilities jin Bahrain to eliminate congestion for New Zealand exporters. It will also seek trade in its own right in Bahrain and elsewhere in the Middle East.

The port facility offers New Zealand exporters an important means of access not only to Bahrain but to other nearby Middle East countries.

The board meeting this week deferred a decision on finance for the project. Mr Eshaq said that six proposals had been received from finance institutions around the world, but the board felt no immediate urgency to commit itself to one particular proposal at this stage. This was because of the particular uncertainty surrounding the Em ociollar, marke’ exchange rates, and fluctuations in interest rates. I “We felt it more appropriate to commr ourselves ■ when we have received all tenders, and the final cost of (the project is established,” (he said.

This was expected about the end of June. The final cost had not been nudgeted at this stage, but the initial facilities were expected .o cost SIIM, Mr Eshaq said. The project’s target completion date is August or September next year, but B.A.N.Z. would consider trading earlier than that date. The 10-hectare site, not

,far from the Bahraini capital: ! of Manama, was a prime loj cation and the company; 'could offer bonded facilities I for dry cargo before the completion date. The New Zealand firm of Kerslake and Partners had been appointed consulting engineers for the project, but no decision had yet been made on management for the project. Mr Eshaq said B.A.N.Z.

(was looking at proposals from the other companies [engaged in trading and cold storage facilities. Initially it might be advisable to seek expprt advice from other companies working in this field, and B.A.N.Z. was considering proposals from within New Zealand and abroad. The role of management would begin only when construction w'as finished.