China Machinery Engineering Corporation (CMEC) has won a $691 million contract to build more than 3,000 residential units in a government-subsidised housing project in Bahrain.

CMEC Deputy General Manager Fang Yanshui met with Bahraini Deputy Prime Minister Sheikh Khalid and signed the East Sitra City contract with Bahraini Housing Minister Basim Bin Yacob Al Hamar.

According to a statement released by CMEC, Sheikh Khalid described East Sitra City as an important measure for ensuring steady and robust economic development of the region.

Yanshui added that the Chinese government and CMEC attach great importance to the project which will include 3,100 homes and relevant supporting municipal works.

Al Hamar said that the project is one of a number initiated by the ministry to provide 40,000 housing units for lower-income families.

The project is also in line with efforts to hit the 25,000 housing unit target that the government is currently working towards

The General Plan for East Sitra also includes health, educational and commercial facilities, places of worship, commercial centres, fuel stations, police stations and coast guard, youth centres and elderly care, parks and public parks.

An Wa’er, Chinese Ambassador to Bahrain, said the project represented a new milestone of cooperation between the two countries under the Belt & Road Initiative.