MPs yesterday approved sweeping amendments to government procurement law and referred them to the Shura Council.
The changes to Decree-Law 36 of 2002 raise internal purchasing ceilings, introduce controlled negotiation in limited cases and modernise auction methods, while preserving the supervisory powers of the Tender Board and the National Audit Office.
Parliament’s financial and economic affairs committee chairman MP Ahmed Al Salloom said the draft addresses ‘real operational challenges exposed over two decades’ and aligns Bahrain with modern procurement standards.
A key amendment doubles the ceiling for purchases ministries can process internally from BD25,000 to BD50,000. For wholly state-owned companies, the limit rises from BD50,000 to BD100,000. Entities must still notify Tender Board Bahrain every three months of such purchases.
MPs deliberately removed a clause that would have allowed the Cabinet to change these limits by decision.
“Any future change to financial ceilings must return to Parliament, not executive discretion,” Mr Al Salloom said.
Rigid auction rules are replaced with broader contracting methods set by executive regulations. Public auctions may be conducted physically or electronically, and – under strict controls – even managed by private operators.
One of the most debated additions allows entities, with Cabinet approval, to negotiate with bidders only in defined situations – when there is a single bidder, when the best bid exceeds the allocated budget, or when bids fall within five per cent of the top technical score. Any outcome must go back to the Tender Board for a final decision.
Business groups cautioned that post-bid negotiations could affect competition. Mr Al Salloom pushed back. “Negotiation is not open-ended bargaining. It is a controlled tool used internationally to secure better value for public funds when competition is limited or prices exceed estimates.”
A new provision allows the Cabinet to exempt entities from the law for contracts executed entirely outside Bahrain, provided Cabinet-approved procedures are followed and quarterly reports submitted.
Both the Bahrain Chamber and the Bahrain Businessmen’s Association supported the reforms, urging clear safeguards around negotiations.
Electricity and Water Affairs Minister Yasser Humaidan, politically responsible for the Tender Board, attended the debate.
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