The In-Country Value (ICV) is a policy that outlines methods of operation that will aid in promoting GDP diversification in the state of Qatar and sustained economic growth of the energy sector. ICV is governed by "Tawteen," a group chaired by Qatar Petroleum.
The ICV is the entire amount of money spent within the nation that promotes economic growth, builds human capacity, and raises productivity. This is a crucial component of Qatar's localization ambitions and will help the nation become more competitive on a global scale.
The ICV will assist Qatar in lowering its dependency on imported goods and services, enhancing the skills of the populace, and luring investment to the country.
What is ICV certification?
Suppliers are expected to submit their ICV scorecard and/or ICV plan submission templates as part of the ICV program, and these documents must be validated by independent ICV certifiers in Qatar who have been approved by Qatar Petroleum. Deloitte, Ernst & Young, KPMG, Rodl & Partner, and a large number of other certifiers are examples of ICVs.
This is necessary to guarantee that the data supplied by suppliers is computed in accordance with the methodology and that the ICV contribution is correct. The certifier's primary duties include carrying out test processes, reviewing the data supplied by suppliers, issuing ICV Certification, attending biweekly meetings, and granting Tawteen access to review working papers.
Tawteen has established a governance framework to guarantee the accuracy, reliability, and coherence of the ICV program's interpretation. All of Qatar's energy-related businesses are involved in Tawteen's operations. Suppliers can only become certified through the designated ICV Certifiers, who are appointed by Tawteen as ICV Certifiers.
Why ICV is important to you
Whether a large entity is directly involved in the energy industry or not, the In-Country Value programs in the Middle East will have a considerable impact on that corporation's investment, procurement, talent development, and structure policies. International and local businesses will need to build cohesive plans in order to maintain their competitiveness over the long term, as executing these strategies takes time to mature. It is essential to have a thorough understanding of ICV while creating any regional plan. An overview of ICV in the Middle East is provided here.
The ICV Policy has an impact on the tendering and awarding process, where local suppliers and contractors will get a commercial advantage.
Key areas of the procurement process
Suppliers should anticipate that ICV will have an influence on the following three areas:
Supplier onboarding
As part of the registration procedure, suppliers will be required to provide their certified ICV scorecards. They must also re-certify and update their scorecard every year.
Tendering
Based on the ICV scorecard or the ICV strategy, ICV participates in the decision to choose the successful bidder.
Contact review
The ICV plan is subject to three reviews: two throughout contract execution, one in the middle, and a final assessment at the conclusion of the contract.
The supplier is required to have their ICV plan verified by a pre-approved certifier for review at the end of the contract.
Depending on the supplier's performance in relation to their ICV plan, there will be corresponding penalties or awards that were agreed upon during contract discussions.
Technical, business and ICV evaluation factors are used to determine the winning bidder. It is essential that the ICV criteria are followed during the procurement process.
