A legislation that seeks to modernise government procurement procedures, allowing ministries, agencies and state-owned companies a higher threshold, is set for debate and vote during the Parliament session on Tuesday.
The government-drafted amendments cover the 2002 Tenders, Bids, Government Purchases and Sales Law.
They aim to address practical challenges encountered in the application of the law, update procurement systems to reflect economic changes at local, regional, and international levels, and adopt best practices that enhance efficiency, transparency and quality in public procurement processes.
“The law is being revised to remedy practical issues that have surfaced during its implementation, ensuring that government procurement processes function more smoothly,” said Parliament’s financial and economic affairs committee chairman Ahmed Al Salloom.
“Changes reflect the need to modernise procedures in line with new economic realities at various levels – local, regional, and international,” he added.
“The amendments embrace advanced standards and procedures to foster efficiency, transparency, and cost-effectiveness in tendering and procurement activities.
“Specific financial limits within the law are raised to better accommodate current market conditions.”
For ministries and government bodies, the maximum value for undeclared tenders, bids, purchases, and sales to the board will double from BD25,000 to BD50,000.
For fully state-owned companies, this threshold will rise from BD50,000 to BD100,000.
The bill also permits the Cabinet, by decision, to modify these financial limits in response to evolving economic conditions.
“Recognising the unique legal nature of contracts executed abroad, the proposal provides additional flexibility to accommodate the specific circumstances associated with such transactions,” said Mr Al Salloom.
“The proposed law allows contracting authorities greater leeway to negotiate with suppliers and contractors in certain cases, with the goal of enhancing service quality, preserving public funds, and ensuring resource sustainability.
“We believe that this legislative update is a timely response to the fluctuations in market prices. The proposed adjustments, particularly the increase in financial thresholds and the added flexibility for international contracts, will significantly improve our government procurement system.”
The proposal has been backed by the Bahrain Chamber and the Bahrain Businessmen’s Association.
The Financial Audit Office has no objections to the amendments.
Meanwhile, MPs are set to vote on financing from the Islamic Development Bank to fund the new 400 Kilo Volt Electricity Plant in Jasra. The loan, which will be granted to the Electricity and Water Authority (EWA), can’t exceed $200 million.
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