Construction on a US$66m marina project in Bahrain has been delayed again after it was discovered land set aside for the development’s second phase was no longer under government control, meaning a royal order is required for the project to continue as planned, it was reported.

Muharraq Municipal Council in October finally gave the green light for a BHD25m (US$65m) Al Ghous Corniche marina development, which will include a hotel, public beach, shopping mall, an indoor and outdoor theme park, fish market, a main office tower and commercial and residential buildings.

While phase one of the proposed development was started in 2006, phase two was deadlocked by a disagreement among officials and was never started. Located between the Shaikh Hamad bin Isa Causeway and the Shaikh Isa bin Salman Causeway, the coastal project includes backing from a consortium of Turkish, Saudi and Bahraini investors.

A dispute may now see phase two of the project deadlocked in further administrative delays as the deeds for the land are currently in the hands of Bahrain Real Estate Investment Company (Edamah), a division of the government-backed Bahrain Mumtalakat Holding Company.

“That land is not registered with us as municipal property and if councillors want the complete the project to go ahead as planned, then it has to contact the Royal Court to change the deeds,” Muharraq Municipality director-general Saleh Al Fadhala was quoted as saying.

“This is the first time we see huge interest from regional investors to pump money in a Muharraq project rather than Manama and we have to make everything easy for them, not the opposite… I don’t think the Royal Court would reject transferring deeds for such a vital project, which would give Muharraq the edge it needs to be truly known as Bahrain’s first image,” added Council chairman Abdulnasser Al Mahmeed.

The project is part of Bahrain’s bid to reignite its tourism sector after months of civil unrest.

Earlier this year, hotels in the Gulf kingdom’s capital, Manama, reported a 112 percent rise in occupancy rates to 45 percent, according to latest figures released by STR Global.