Bahrain�s new parliament is expected to swiftly pass sensitive austerity measures needed to secure a Gulf aid package, but the U.S.-allied government may implement the belt-tightening in stages to avoid provoking public anger.

The Bahraini government signed yesterday two deals worth $25 million with the Saudi Fund for Development (SFD).

Bahrain will receive up to $2 billion from its Gulf neighbors before the end of the year as the first installment of an aid package, and some funds have already arrived in state coffers, officials said on Thursday.

Works, Municipalities Affairs and Urban Planning signed deal for a new headquarters for agricultural affairs, funded by Kuwait Fund for Economic Development. The project will cost 2 million BD.

Bahrain�s Minister of Housing, Bassem Al Hamar confirmed that the East Sitra housing project is not listed in the GCC Marshal projects, pointing out the lack of required budget to implement the project.