Manama Municipality's income is expected to more than double as old leasing contracts are replaced with new 'market-priced' rates.

Its revenue from current contracts is BD109,058 a month, but it is expected to increase up to BD230,500 with the introduction of new contracts.

This is an increase to 399 out of a total of 903 contracts revised by the municipality and Manama Municipal Council, said officials.

The latest development also includes the transfer of ownership of various projects after their contracts expired.

'When municipal plots were earlier leased to investors it was for periods of 15 years,' said council financial, administrative and legislative committee head Sadiq Al Basri.

'The contracts stated that the building constructed by the developer becomes municipal property immediately after their expiration.'

This means that instead of charging a specific amount for rent on various properties as stated in the contract, it can now be further increased, said Al Basri.

'It includes 12 outlets west of the Manama Central Market, where rent will increase from a total monthly revenue of BD34,085 to BD60,681, which is justified since the lease is for both the plot and showrooms.

'The same applies to the Marina Mall, which has seen its monthly rent revenue increased from BD35,700 to BD80,000, as the municipality now owns the building in addition to the plot of land.'

'The Mothercare showroom in Segaiya will see increased revenue from BD1,700 a month to BD13,450, which is around 790 per cent rise.'

He said there were other outlets whose rents were not in line with current market prices and will be increased once their contracts expire.

'Shops in the Lulu Shopping Complex will soon bring a revenue of BD60,681 rather than the current BD34,085,' he said.

'Garages in Hoora will pump a revenue of BD15,190 rather than the current BD9,277 and the old slaughter house area where 18 shops are operating will bring a revenue of BD10,160 rather than the current BD7,800.

'Revenue from outlets on Al Fateh Corniche will be BD3,560 rather than BD2,250, while the Royal Commercial Centre, Gudaibiya, would have its rent increased by 87 per cent from BD1,050 a month to BD1,960.'

Meanwhile, municipal rent from 191 merchants in the Manama Central Market is set to decrease, said Al Basri.

The merchants are currently being forced to pay a location tax, more than their counterparts in other markets around the country, which the council deemed unfair, he added.

He said that even though the municipality was set to lose thousands of dinars due to the central market rent decrease, it was 'the price of justice'.

He said that the move would not have a serious impact on the municipality's budget since it would be receiving higher revenues from its properties contracts.

'We are expecting a monthly drop of BD1,795 from the current BD4,915 in rents from 97 stalls in the fish market and a drop of BD1,380 from the BD4,425 collected from the meat and poultry market,' he said.

'Those merchants are paying more than they should and it's affecting their business. They are paying an additional amount, which they shouldn't compared to their counterparts in other markets.'-TradeArabia News Service