"This is by far the biggest development project we have ever undertaken at the BIC since the circuit was first built," he said.
"I believe that there can be no better way for us to mark our 10th anniversary in F1 by demonstrating our long term commitment to the sport through this significant investment," said al-Khalifa.
The track floodlighting for the F1 race will involve 495 lighting poles, ranging in height from 10-45 metres, and be suitable for high definition TV broadcasting.
Singapore currently hosts Formula One's only full night race, with Abu Dhabi's a day-to-night event with the sun setting during the race. A spokesman said Bahrain's race would start after sunset.
Bahrain's race is scheduled for April 6.
(Reporting by Alan Baldwin, editing by Amlan Chakraborty)
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