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What is In-Country Value (ICV)?

In-Country Value (ICV) measures the economic value added from local operations and retained spend. ICV is measured using a formula which captures the contribution of eligible local costs from total costs incurred from operations in the State of Qatar. This formula considers the contribution from local purchases, upskilling the workforce, developing local suppliers, and establishing capital investments.
ICV rewards bidders based on their local contribution, providing them with a competitive advantage during commercial evaluation in tenders with the Energy Sector.

ICV Objectives

Tawteen’s ICV Program was developed to complement the Qatar National Vision 2030. The ICV Program drives the localization agenda within the Energy Sector through the following key enablers:

Key strategic focus
area

ICV in Qatar is driven by focusing on the following strategic objectives of localization:

  • Maximize sustainable in-country value creation
  • Upskill and develop local talent and suppliers
  • Promote in-country private investment

Way of working, not just a formula

ICV changes behaviors related to procurement and suppliers’ spend. Suppliers are motivated to adapt their procurement strategy due to the role of competitive pricing and ICV Score in commercial evaluation.

Contribute to sustainable economic growth for the Energy sector

ICV encourages local businesses to grow and broaden local sources to enhance supply chain resilience and business continuity. In turn, this reduces dependencies on imported goods and services, resulting in logistical cost savings and shortened lead-time.

Mechanism to promote GDP diversification

ICV promotes GDP diversification by developing and supporting local suppliers. Additionally, the ICV Program incentivizes foreign suppliers to establish new opportunities within the State of Qatar.

Enables the development of local suppliers

ICV rewards suppliers who invest into the development of other local suppliers by capturing 100% of the respective spend in their ICV Score. Suppliers are further recognized for innovation and best industry practices through the Bonus Scheme.

Supports Qatar in becoming globally competitive

ICV incentivizes competitive behaviors such as exports, productivity & automation, and research & development by rewarding strategic progress through the bonus scheme.

Refined ICV Formula

ICV Scorecard

  • The ICV Scorecard is a historical view of achieved in-country value (ICV) from business operations in Qatar, based on the latest audited financial statements.
  • Each ICV Scorecard must be validated by an ICV Certifier.
  • The ICV Scorecard impacts the procurement process as follows:
    1. Bidders must have a valid ICV Certificate on the commercial bid submission date.
    2. The ICV Certificate provides a competitive advantage in commercial evaluation and plays a role in determining the winning bidder.

The ICV Plan content will be updated as part of the enhanced ICV Program at a later stage.

ICV Plan

Divided by:

A

Goods & Services
+

B

Workforce Training
+

C

Supplier Development
+

D

Investments in Fixed Asset

Divided by:

R

Total Contract Value
  • The ICV Plan is a forward-looking view, based on a supplier’s planned spend during contract execution. For selected contracts with Qatar’s Energy Sector, supplier’s will set out its ICV Plan as part of its tender documents, as a commitment to be achieved at the end of contract execution.
  • The ICV Plan must be certified by an ICV Certifier at the end of the contract. There will be corresponding reward if the winning bidder achieved its commitment.
  • ICV Plan impacts the procurement process as follows:
    1. Bidder shall submit the completed ICV Plan template in the bid document.
    2. The submitted ICV plan will play a major role in commercial evaluation to determine the winning bidder.

The ICV Plan content will be updated as part of the enhanced ICV Program at a later stage.

ICV Plan

Divided by:

A

Goods & Services
+

B

Workforce Training
+

C

Supplier Development
+

D

Investments in Fixed Asset

Divided by:

R

Total Contract Value
  • The ICV Plan is a forward-looking view, based on a supplier’s planned spend during contract execution. For selected contracts with Qatar’s Energy Sector, supplier’s will set out its ICV Plan as part of its tender documents, as a commitment to be achieved at the end of contract execution.
  • The ICV Plan must be certified by an ICV Certifier at the end of the contract. There will be corresponding reward if the winning bidder achieved its commitment.
  • ICV Plan impacts the procurement process as follows:
    1. Bidder shall submit the completed ICV Plan template in the bid document.
    2. The submitted ICV plan will play a major role in commercial evaluation to determine the winning bidder.