What is In-Country Value (ICV)?

Tawteen ICV program is developed to complement Qatar National Vision 2030 by driving the localization agenda in Qatar’s Energy sector through the following key enablers:

1

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
  • 2

    Way of working, not just a formula

    ICV will change the behavior of procurement process and suppliers’ spend. Suppliers need to adapt their procurement strategy as the commercial evaluation will be based on suppliers’ competitive price and ICV score.

    3

    Contribute to sustainable economic growth for the Energy sector

    ICV will encourage local businesses to grow and broaden local sources to enhance the supply chain resilience and business continuity. In turn, this will reduce dependencies on imported goods and services and result in logistical cost savings and shorter lead-time.

    4

    Mechanism to promote GDP diversification

    ICV promotes GDP diversification through developing and supporting local suppliers and SME (small and medium enterprises) as well as incentivising foreign suppliers to establish new opportunities in Qatar.

    5

    Enables the development of local suppliers

    Any cost incurred by the suppliers towards the development of their sub-suppliers counts as 100% contribution to their ICV score.

    6

    Supports Qatar in becoming globally competitive

    ICV incentivizes exports since the revenue from export is excluded from ICV formula, which will result in a higher ICV Score.

    The ICV Formula is based on the ICV strategic objectives

    Divided by:
    • Objective 1Maximize sustainable in-country value creation
    • Objective 2Upskill and develop local talent and suppliers
    • Objective 3Promote in-country private investment

    A

    Goods

    Cost of local tangible goods and materials

    Services

    Cost of local services (manpower, subcontractors and goods)

    +

    B

    Training of Workforce

    Cost of training offered to Qatari Nationals and residents

    +

    C

    Supplier Development

    Cost of supplier training and certification programs

    +

    D

    Investments in Fixed Asset

    Depreciation of company assets In Qatar

    Divided by:

    R

    Total Revenue in Qatar

    Total revenue in Qatar, excluding exports.

    ICV Scorecard

    Divided by:

    A

    Goods & Services
    +

    B

    Workforce Training
    +

    C

    Supplier Development
    +

    D

    Investments in Fixed Asset

    Divided by:

    R

    Revenue
    • The ICV Scorecard is a historical view based on the latest audited financial statement.
    • It must be certified by an ICV certifier annually, at a minimum. ICV scorecards offer a commercial advantage to suppliers seeking to do business with the Energy Sector in Qatar.
    • ICV Scorecard impacts the procurement process as follows:

      a) Bidders shall submit their ICV Scorecard certificate in the bid document.

      b) ICV Scorecard certificate will play a role in commercial evaluation to determine the winning bidder.

    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:

      a) Bidder shall submit the completed ICV Plan template in the bid document

      b) The submitted ICV plan will play a major role in commercial evaluation to determine the winning bidder