What is In-Country Value (ICV)?
The In-Country Value (ICV) is a policy that sets out ways of working which will help contribute to sustainable economic growth of the Energy Sector and promote GDP diversification in the state of Qatar. ICV is overseen by a body known as ‘Tawteen’ which is led by Qatar Petroleum.
The ICV is the total spend retained in country that benefits business development, contributes to human capability development and stimulates productivity. This is an essential pillar of Qatar’s localisation efforts and will support the country in becoming globally competitive.
The ICV will help Qatar to continue reducing reliance on imported goods and services, building capabilities of the local population, and attracting investment to Qatar.
What does ICV mean for the Procurement Process in Qatar?
The ICV Policy impacts the tendering and awarding process, where suppliers and contractors who are contributing to the local economy will acquire a commercial advantage.
Suppliers should expect ICV to impact three key areas of the procurement process:
- Supplier onboarding
Suppliers will be requested to provide their certified ICV scorecard as part of the registration process and will need to re-certify and update their scorecard on an annual basis
ICV plays a role in the selection of the winning bidder based upon the ICV scorecard or the ICV plan
- Contract Review
There are two reviews during the execution of the contract, one review undertaken during the middle of the contract and a final review of the ICV plan at the end of the contract
For the review at the end of the contract, the supplier must get their ICV plan certified by a pre- approved certifier
There will be associated penalties or rewards, agreed during contract negotiations, depending upon the supplier’s performance against their ICV plan
The bidding process and evaluation is based on technical, commercial and ICV evaluation criteria. Compliance to the ICV requirements in the procurement process is crucial.
What is the ICV Certification?
Under the ICV program, suppliers are required to submit their ICV scorecard and/or ICV plan submission templates which are to be certified by Qatar Petroleum-approved, independent, ICV certifiers. ICV certifiers include Deloitte, Ernst & Young, KPMG, Rodl & Partner as well as numerous other certifiers.
This is required to ensure the information provided by suppliers is calculated according to the methodologies and the ICV contribution is accurate. The main responsibilities of the certifier include performing test procedures and review information provided by suppliers, issue ICV Certificates, attend bi-weekly meetings and provide access to Tawteen to review working papers.
Tawteen has put in place a governance structure to ensure transparency, quality and consistency of interpretation of the ICV program. Tawteen operates with the participation of all the companies in the Energy sector in Qatar. ICV Certifiers are appointed by Tawteen, and suppliers can only get certified through the appointed ICV Certifiers.
Does ICV impact my company?
For more information about Qatar’s ICV Program and how this could impact your business for tendering new contracts as well as conducting business in Qatar, Licensing matters and PRO Services, please contact Venture Partner Qatar.
How can Venture Partner Qatar assist with ICV Certification?
Venture Partner Qatar can assist with ICV certifications for companies and individuals in Qatar, For more information, please speak to one of our team members on +974 4478 8765 or email email@example.com
The In-Country Value (#ICV) is a policy that sets out ways of working which will help contribute to sustainable economic growth of the #Energy Sector and promote GDP diversification in the state of #Qatar. https://t.co/gDiVrg90X3— Venture Partner (@venturepartnerq) February 26, 2020