– The value of contracts increased by 23 % compared to Q1 2020 –
– Number of contracts up by 25% –
– Bahrain’s $32bn infrastructure spend driving growth –
Manama, Bahrain: Bahrain awarded US$ 1.6 billion (BD 607 million) worth of Government contracts in the first quarter of 2021, according to new data released by Bahrain’s Tender Board – the country’s government procurement regulator. In total, the value of the awarded tenders grew by 23% from US$ 1.3 billion (BD 492 million) in the first quarter of 2020 which reflects the increased economic activity in the Kingdom.
The growth was partly driven by projects linked to Bahrain’s $32bn infrastructure spend – which includes strategic infrastructure projects such as the multi-billion dollar refinery modernisation project, which is 70% complete and due to finish by the end of 2022.
In terms of value, the oil was the largest sector with US$ 767 million (BD 289 million) worth of contracts in Q1 2021, followed by the aviation sector, with contracts valued at US$ 382 million (BD 144 million).
While the construction and engineering consultancy sector has generated US$ 194 million (BD 73 million) worth of contracts so far this year; with the materials & equipment receiving contracts worth US$ 119 million (BD 45 million).
Commenting on the new figures, the Chairman of the Tender Board, Shaikh Nayef bin Khalid Al Khalifa said, “The volume of economic activity, with 25% more tenders awarded in the first quarter of this year compared to last year, demonstrates the strength of the economy and the size of the opportunity for businesses that are looking to partner with Bahrain. Improvements made to our e-tendering system over the last year are just part of a wider digitalisation drive that is realising greater efficiencies, benefiting the private sector and taking full advantage of Bahrain’s advanced digital infrastructure. The number of robust and successful procurement processes that took place in Q1 is a testament to our unique ‘Team Bahrain’ approach that sees the government and the private sector work hand in hand to deliver strong results across the board.”
In terms of the purchasing authorities, Tatweer Petroleum was the biggest spender, awarding US$ 509 million (BD 192 million) worth of contracts, followed by Gulf Air which reached US$ 369 million (BD 139 million). Bapco placed third with tenders worth US$ 257 million (BD 97 million), followed by the Ministry of Works, Municipalities Affairs at US$ 224 million (BD 84.5 million) and the Ministry of Health reaching US$ 75.6 million (BD 28.5 million).