US embassy cable - 04MANAMA370

UNCLAS SECTION 01 OF 02 MANAMA 000370 
 
SIPDIS 
 
DEPT FOR NEA/ARP AND EB/TPP/MTA/MST ADILWORTH 
DEPT PASS USTR JASON BUNTIN, AND JEAN GRIER 
USDOC FOR JLIUZZI AND SPIETAN 
 
E.O. 12958: N/A 
TAGS: EAGR, ECON, ETRD, PREL, BA 
SUBJECT: POST RESPONSE: U.S.-BAHRAIN FTA GOVERNMENT 
PROCUREMENT 
 
REF: STATE 52560 
 
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Post-proposed additions to the GOB's list of government 
entities that may be of interest to U.S. suppliers 
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1. Post believes that the following should be ADDED to the 
list of government entities that conduct procurements that 
may be of interest to U.S. suppliers: 
 
--Royal Court 
--Prime Minister's Court 
--Crown Prince's Court 
 
The following have independent budgets and so should also be 
included: 
--Bahrain Defence Force (BDF) 
--Civil Service Bureau 
--National Audit Court 
--Directorate of Legal Affairs 
--Bahrain Customs and Ports Directorate 
--Bahrain Stock Exchange 
--Cultural and National Heritage Directorate 
--Tourism and Marketing Directorate 
--Publications Directorate 
--Housing Bank 
--Bahrain Monetary Agency 
--Bahrain Stock Exchange 
--University of Bahrain 
--Bahrain Training Institute 
--Bahrain Center for Studies & Research 
--Bahrain International Circuit 
--Supreme Council for Women 
--Specific Councils 
--Supreme Council for Profession Training 
--Bahrain Institute of Banking and Finance 
 
Entities covered by the Tenders Law all have the potential to 
conduct significant procurements that could be of interest to 
U.S. suppliers. 
 
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State Owned Enterprises 
---------------------- 
2. State owned enterprises (SOEs) in which the government has 
a greater than 50 percent ownership and that conduct 
procurements that could be of interest to U.S. suppliers: 
 
--Bahrain National Gas Company (Banagas): 75 percent state 
ownership (SO) 
--Bahrain Petroleum Company (Bapco): 100 percent SO 
--Aluminium Bahrain (ALBA): 77 percent SO (NOTE: A 
recently-signed MOU with ALCOA would give ALCOA a 26 percent 
stake in ALBA, leaving the GOB with a 51 percent stake. 
Please discuss inclusion of ALBA in the Agreement with ALCOA. 
 END NOTE). 
--Bahrain Development Bank: 100 percent SO 
--Bahrain Flour Mills (BFM): 65.73 percent SO 
--Bahrain Monetary Agency (NOTE: This is Bahrain's Central 
Bank.  END NOTE) 
--Bahrain Stock Exchange 
--Mina Salman and Hidd Ports (Customs and Ports Directorate, 
Ministry of Finance, but managed by a private company): 100 
percent SO 
 
3. The following entreprises identified as SOEs reftel do not 
meet the 50 percent state ownership (SO) threshold: 
--Gulf Aluminium Rolling Mill Company (GARMCO): 25.47 percent 
SO 
--Bahrain Aluminium Extrusion Company (BALEXCO): 15.76 
percent SO 
--Arab Shipbuilding and Repair Yard (ASRY): 18.84 percent SO 
--Gulf Air (co-owned by Bahrain, Oman and Abu Dhabi): GOB 
owns 33 percent 
--Bahrain Telecommunications Company (BATELCO): 29.6 percent 
SO 
--Bahrain International Airport: 16.5 percent SO 
 
4. No Commercial Registration records were found for the 
following: 
--Gulf Aluminium Industries (joint venture between Bahrain 
and Italy) 
--Bahrain Atomisers International 
--Bahrain-Saudi Aluminium Marketing Company (BALCO) 
 
5. The following enterprises listed as SOEs reftel are not 
SOEs: 
--Al Ayam (The Days) (Pro-King newspaper, but not SO) 
--Akhbar al Khalij (Gulf News) (Pro-Government, but not SO) 
--Gulf Daily News (English-language newspaper) 
(Pro-Government, but not SO) 
--Bahrain ABC Islamic Bank 
 
 
 
FORD