MPs to debate plan to double tendering limits to BD50,000 for ministries, BD100,000 for state firms

TDT | Manama

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Ministries will see their tendering limit double to BD50,000 from the current BD25,000 if a draft law gains MPs' approval next Tuesday.

Prepared by the Financial and Economic Affairs Committee, the proposal amends Decree-Law No. (36) of 2002, which regulates tenders, auctions, purchases, and sales across the government.

Approval would also mean state-owned companies have their threshold raised from BD50,000 to BD100,000.

The original draft gave the Cabinet the power to revise these limits in the future, depending on economic conditions. However, the committee has recommended removing this provision.

The law also introduces two new articles. One allows the Cabinet to exempt certain government bodies from regulations for deals signed and carried out abroad—provided those bodies follow their own approved internal procedures and report regularly to the Tender Board.

The second article permits ministries, or any evaluator appointed by the Tender Board, to negotiate with bidders in specific situations. This includes cases where only one offer is received, the lowest bid is higher than the estimated cost, or the top bids are within five per cent of each other. Final approval would rest with the Tender Board. Other amendments aim to clarify how public assets are sold. One revised article allows ministries to use either traditional or electronic public auctions to dispose of assets. The Tender Board would also be allowed to assign auction procedures to private firms.

Two existing articles—Article 33, paragraph two, and Article 64—would be scrapped. These cover restrictions on price negotiations and tie sales procedures to those used for government purchases.

The Tender Board supported the draft, stating that public bodies need more flexibility to address rising costs and that the current caps are too rigid.

The National Audit Office and the Bahrain Chamber of Commerce and Industry generally welcomed the amendments. However, the Chamber raised concerns about removing Article 33, warning that it could disadvantage smaller firms seeking contracts. It also criticised the negotiation clause, suggesting it could undermine sealed tendering and favour larger firms.

The Bahrain Businessmen’s Association backed the draft, arguing the changes better reflect today’s market and promote fairer competition.