Bahrain has awarded a total of 372 tenders worth a total of $740 million during the first three months of the year, reaffirming the Kingdom’s efforts to continue public and private sector spending on major infrastructure projects, despite the ongoing exceptional circumstances around the globe due to the COVID-19 pandemic.
According to data released by the Bahrain Tender Board, the biggest share (30%) of tenders was for the procurement of equipment and materials, worth a total of $233 million. This was followed by the construction and engineering services sector, which accounted for 26% of tenders, worth $188.7 million.
The aviation sector came in third, taking 18% of the tenders valued at $132 million, while the fourth and fifth slots were taken by the oil and gas and services sectors, accounting for 15% and 11% of the awarded tenders respecitively, it stated.
According to the Bahrain Tender Board, a total of 1,730 tenders worth $4.9 billion were awarded last year, with the construction and engineering services sector grabbing the lion’s share of 45%, which was worth $2.2 billion.
The oil and gas sector came second with $1.2 billion tenders (around 24% 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 modernization 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 it stated.
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.
Sheikh 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% of the 2019 total – up from 57% the previous year,” he stated.
“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,” noted Sheikh Nayef.
“This reflects the progress the Tender Board has made in adopting best international practices to increase its competitiveness and optimize the value of public funds spent,” he added.
ME Construction News
14/05/2020
