Gulf Construction Online - Bahrain driving growth; awards $740m tenders

Regional News

Shaikh Nayef ... adopting best international practices.

Bahrain driving growth; awards $740m tenders

01 June 2020

Bahrain had awarded a total of 372 tenders worth $740 million during the first three months of the year, thus reaffirming the kingdom’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.

Of these, the biggest share (30 per cent) was for procurement of equipment and materials worth $233 million followed by the construction and engineering services which accounted for 26 per cent of the tenders worth $188.7 million, according to new data released by the Bahrain Tender Board.

The aviation sector was the third, taking 18 per cent of the tenders valued at $132 million, while the fourth and fifth slot was taken by the oil and gas sector and the services sector, accounting for 15 per cent and 11 per cent of the awarded tenders, it stated.

According to Bahrain Tender Board, a total of 1,730 tenders worth $4.9 billion had been awarded last year, up 70.5 per cent over the previous year, with the construction and engineering services sector grabbing the lion’s share (45 per cent) worth $2.2 billion.

The oil and gas sector came second with $1.2 billion tenders (around 24 per cent of the total), followed by the aviation sector with $627 million tenders accounting for 13% share.

The Tender Board said the kingdom’s $32-billion infrastructure project pipeline is a major contributor and driver of national economic growth.

Among the key projects currently under way is the Bahrain Petroleum Company (Bapco) refinery modernisation project (now 50 per cent complete), and the $1.1-billion Bahrain International Airport expansion project that will contribute to doubling the airport’s capacity to 14 million passengers annually, it stated.

Bahrain Tender Board Chairman Shaikh Nayef bin Khalid Al Khalifa 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.

Shaikh Nayef said in an effort to enhance market competitiveness, the board had 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 per cent of the 2019 total – up from 57 per cent the previous year,” he stated.

“In addition, the number of limited tenders declined from 25 per cent to 19.3 per cent of the total number, while the contracting ratio registered 10.3 per cent in 2019, compared to 18 per cent in 2018,” noted Shaikh Nayef.

“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,” he added.