DEBATE on a government-drafted bill to amend Bahrain’s 2002 Tenders, Auctions, Purchases and Sales Law has been suspended for a month after disagreements among MPs over the potential implications of raising financial thresholds for government tenders.
The proposed amendments seek to enhance flexibility, transparency and efficiency in public procurement.
Parliament’s financial and economic affairs committee has already recommended approval of the draft after consulting the Tender Board, National Audit Office and Bahrain Chamber, all of which broadly supported the revisions.
Among the most significant changes is the proposal to raise the maximum financial limits for ministries and state-owned companies to conduct independent tenders and purchases without direct oversight from the Tender Board.
Under the draft law, ministries and government agencies would be authorised to manage tenders worth up to BD50,000 – up from BD25,000 – while state-owned companies would be permitted to handle tenders up to BD100,000, compared with the current BD50,000 ceiling.
The proposed legislation also includes provisions to modernise auctions by allowing electronic and hybrid bidding systems and enabling the Tender Board to delegate auction management to private entities under specific conditions.
Electricity and Water Affairs Minister and Tender Board chairman Yasser Humaidan said the updated legislation reflects modern procurement realities and addresses inefficiencies in the existing framework.
“The move would allow electronic bids, which are currently not permitted,” he said. “It also allows negotiations among close contenders to determine the winner. The current ceilings are unfeasible and hinder operational work. Even with the new limits, more than 80 per cent of deals will continue to be monitored by the Tender Board.”
Parliament financial and economic affairs committee chairman Ahmed Al Salloom added that the amendments recognise the evolving nature of procurement and the need for flexibility in smaller-scale projects.
However, MP Jalal Kadhem Al Mahfoodh said the move “undermines regulatory control and opens a gateway to corruption”, warning that doubling the ceiling for ministries and state-owned companies “grants excessive spending powers without real supervision from the relevant authorities”.
“Setting such high limits strips oversight bodies of their ability to closely monitor the use of public funds,” he said, adding that many state-owned company boards included private businessmen, increasing the risk of conflicts of interest and allowing contracts to pass without genuine scrutiny.
Mr Al Mahfoodh also argued that raising the ceilings would harm small and medium-sized enterprises (SMEs).
“Many SMEs benefited from tenders close to the current ceiling; they were among the most competitive bidders in terms of value and quality,” he said.
Parliament first deputy speaker Abdulnabi Salman also expressed concern, questioning whether the changes could lead to unchecked financial decisions.
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