New data released by the Tender Board, an independent regulator of government procurement practices in Bahrain, revealed that the country awarded 1,730 tenders in 2019 worth a total of $4.9 billion.

The construction and engineering services sector took the lion’s share of the awarded tenders, with 45% worth $2.2 billion. The oil and gas sector placed second with tenders valued at $1.2 billion or 24% of the total. The aviation sector came third accounting for 13% of awarded tenders valued at $627 million.

In the first quarter of 2020, Bahrain awarded 372 tenders worth a total of $740 million, with the procurement of equipment and materials accounting for 30% of the awarded tenders valued at $233 million. The construction and engineering services sector accounted for 26% of tenders worth $188.7 million, followed by the aviation sector, which took 18% of the tenders valued at $132 million. The fourth and fifth largest shares were taken by the oil and gas sector and the services sector, accounting for 15% of the awarded tenders worth $113 million, and 11% worth $82 million, respectively.

The results reaffirm Bahrain’s efforts to continue public and private sector spending on major infrastructure projects despite the exceptional circumstances currently affecting the globe regarding the COVID-19 outbreak. The Kingdom’s $32 billion infrastructure project pipeline is a major contributor and driver of national economic growth. Among the key projects currently underway is the Bahrain Petroleum Company (Bapco) refinery modernisation project (now 40% complete), the $1.1 billion Bahrain International Airport expansion project that will contribute to doubling the airport’s capacity to 14 million passengers annually, and the fleet upgrade of Bahrain’s national carrier Gulf Air.

Shaikh Nayef Bin Khalid Al Khalifa, Chairman of Bahrain Tender Board, said: “The new data reflects the stability of the bids awarded in all sectors, and reinforces the sustainability of Bahrain’s development services as part of the ongoing urban infrastructure expansion that the country is undertaking. In line with the objectives of the Bahrain Economic Vision 2030, these numbers encourage us to provide best-in-class services that meet and exceed our citizens’ expectations and align with our national priorities to achieve sustainability and encourage investment, further driving the country’s economic evolution. 

He added: “In an effort to enhance market competitiveness, the Board sought to encourage a wider range of suppliers and contractors to participate in government tenders and bidding last year. The Tender Board achieved distinguished results in 2019 in terms of its selection of government tenders and auctions, with the number of public tenders constituting 70.5% of the 2019 total – up from 57% the previous year.

“In addition, the number of limited tenders declined from 25% to 19.3% of the total number of tenders, while the contracting ratio registered 10.3% in 2019, compared to 18% in 2018. This reflects the progress the Tender Board has made in adopting best international practices to increase its competitiveness and optimise the value of public funds spent.”

Bahrain’s economy has sufficient flexibility to overcome the repercussions of the coronavirus crisis and it will be able to recover quickly once the precautionary measures are eased, revealed during a forum last month.

Proact International Consultancy organised the “Economic Recovery” forum in Bahrain under the slogan “Post-Pandemic”, which was held remotely through live broadcasting.

A group of economists and businessmen discussed the path of post-corona recovery phase in the banking, health, nutrition, tourism, hotels, technology, communications and media sectors at the forum.

The forum’s speakers also reviewed investment opportunities and methods to meet the challenges and encourage the innovation required by the next stage.

CEO of Proact International Consultancy and Secretary-General of the Forum, Dr Khaled Bomatia welcomed the forum participants, who reviewed the changes imposed by coronavirus and discussed how to overcome its consequences, especially in the most-affected sectors.

Businessman Khalid Al Amin said the Bahraini economy has sufficient flexibility to overcome the repercussions of the coronavirus crisis, expressing his belief that the economy will recover quickly once the precautionary measures are eased.

He pointed out that Bahrain’s openness and the integration of its economy with the other economies of the region and the world link the acceleration of this recovery to actions taken by other countries.

Agencies