The government of Bahrain’s financial adviser on the project, HSBC, has now submitted a list of recommended developers for the project that it is waiting to be approved.

A source close to the deal says he does not expect the currently difficult financial markets to affect the ability of a developer to fund the project.

The project involves the design, financing, construction and operation of a $150m greenfield sewage treatment plant in Muharraq, with initial capacity of up to 100,000 cubic metres a day.