Negotiations are under way to resolve a financial dispute that threatened to result in a luxury housing development in Bahrain being swamped with overflowing sewage.

A Dubai-based company that operates a water treatment centre for Riffa Views last month said it was planning to shut it down, claiming it was owed BD4 million ($10.5 million), said a report in the Gulf Daily News (GDN), our sister publication.

Metito initially set a December 1 deadline for payment, but agreed to continue operating the Riffa Views water treatment plant - which also treats wastewater for the Royal Golf Club and Awali - while talks are in progress.

"In a couple of days we will be able to find out more," Metito general manager Walid Madawar told the GDN.

"At the moment, we are in a set of new discussions and the problem that seems to exist is delayed payments from three separate parties and co-ordination between them for the payments.

"We are still running, but in a few days something should definitely be happening. We have heard a lot, but are just waiting to get something on paper."

The plant treats 18,000 cu m of sewage every day and, if it was shut down,effluent would start overflow within an estimated two weeks.

Riffa Views managing director Yasser Alraiee previously told the GDN that the main reason payment had been delayed was tenants not paying compulsory service charges. - TradeArabia News Service