A total of BHD 607 million, or USD 1.6 billion, were awarded in Bahrain tenders during the first quarter of the year.
Data released by procurement regulator Bahrain Tender Board said that the total value of awarded tenders grew 23% from the same time last year. Tenders in the first quarter of 2020 amounted to BHD 492 million, or USD 1.3 billion.
“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,” Chairman of the Tender Board, Shaikh Nayef bin Khalid Al Khalifa, said.
Oil and aviation were the two largest sectors by tender value. The oil sector secured contracts worth BHD 289 million, or USD 767 million in Q1 this year. Meanwhile, contracts in the aviation sector amounted to BHD 144 million, or USD 382 million.
Construction and engineering consultancy also awarded some Bahrain tenders, with BHD 73 million, or USD 194 million, securing tenders. The materials and equipment sector generated contracts worth BHD 45 million, or USD 119 million.
Tatweer Petroleum emerged the biggest spender on Bahrain tenders during the quarter, accounting for nearly a third of the awarded tender volume. The upstream production company spent BHD 192 million, or USD 509 million, on contracts.
It was followed by Gulf Air, which spent BHD 139 million (USD 369 million), and Bapco with BHD 97 million (USD 257 million).
Meanwhile, the Ministry of Works, Municipalities Affairs and Urban Planning contributed tenders to the value of BHD 84.5 million (USD 224 million). In addition, the Ministry of Health awarded contracts worth BHD 28.5 million (USD 75.6 million) during the quarter.
INFRASTRUCTURE SPENDS FROM 2018 BOOST BAHRAIN TENDERS
Bahrain’s infrastructure spends of USD 32 billion, announced in 2018, was partly attributed for the growth in Bahrain tenders awarded in Q1. For instance, the country has a multi-billion-dollar refinery modernisation project in the works. The project is 70% complete, and is due for completion by the end of next year.
The investment allocation consists of USD 10 billion from government coffers, USD 7.5 billion from the GCC Development Fund, and USD 15 billion committed from the private sector.
Aimed at diversifying the economy, the investment target focuses on six key verticals. These are tourism and hospitality, retail, real estate, finance and fintech, infrastructure and oil and gas services.
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