EWA Legal Dispute Contract Sparks Tender Board Clarification

TDT | Manama

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The Bahrain Tender Board has affirmed that its regulations and laws apply equally across all sectors in government tenders, ensuring consistent standards for supplier and contractor participation. This aligns with the objectives of the Law Regulating Government Tenders, Auctions, Purchases, and Sales and its executive regulations.

Responding to an inquiry from MP Dr Hisham Ahmed Al Asheeri, the board explained that bids must meet the tender document's conditions and required documentation to be accepted.

"Suppliers and contractors must also possess necessary qualifications, professional and technical competence, financial resources, equipment, and administrative and technical capabilities to fulfill the contract. Further requirements include eligibility to enter into a contract, absence of bankruptcy or insolvency, and adherence to Bahraini laws and regulations,"the Board's response stated.

The board highlighted that contracting authorities employ trained and board-approved teams to manage procurement procedures. In direct contracting, these teams verify that goods, constructions, or services meet specifications and requirements, ensuring prices are market-competitive based on received bids.

Addressing a specific inquiry regarding a contract with a legal consultancy firm, the board clarified that the initial contract, awarded in 2021, utilised direct contracting as permitted by law under specific circumstances. A subsequent amendment in 2024, increasing the contract value, was for a change order to the original agreement.

The contract, initially valued at BD 1.5 million, involved providing legal consultancy services to the Electricity and Water Authority (EWA) in a dispute with a litigating company before the Bahrain Dispute Resolution Centre.

The EWA requested direct contracting due to the urgency of the matter and the tight deadline imposed by the Centre, given the litigating company's claims totaling BD 11.44 million. The firm's extensive experience in local and international disputes, including prior work for EWA, justified the direct contracting approach.

The board approved the direct contract on October 4, 2021. A first amendment of BD 225,000 was approved on May 13, 2024, representing less than 15% of the original contract value, to cover additional legal consultation related to the dispute.

This was due to insufficient initial information about the dispute's progress and to avoid higher costs associated with engaging a different firm. The contract value then increased to BD 1.725 million.

A second amendment of BD 215,000 was requested and approved on May 29, 2024, to cover additional work to finalise the settlement with the litigating company, avoiding costly arbitration. The final contract value stands at BD 1.94 million. The Tender Board emphasised that all actions were in accordance with existing laws and regulations.