The ICV program will, over time, establish a robust baseline which each supplier will be measured against accordingly. Additionally, the program will measure the progression of ICV over time and ensure processes and systems are in place to maximize ICV.
The ICV program will contribute to a sustainable Energy sector by ensuring that each Supplier is evaluated in a uniform manner and that Suppliers will be appropriately developed and incentivized to drive Qatar’s economic growth.
First and foremost, Suppliers must be technically capable of providing the material(s) and/or service(s). Additionally, Suppliers must ensure a blend of technical capability, price competitiveness and strong ICV score to win the bid; a Supplier with the highest ICV score is not guaranteed to win.
ICV plan will be monitored at the middle and end of the contract. Suppliers will be responsible for getting their ICV Plan Tracker certified at the end of the contract to ensure they have met their target.
There will be some exceptions to the technical evaluation for new Suppliers investing in Qatar to promote the establishment of new facilities in country. We recognize that the technical evaluation criteria may be stringent and disadvantageous to new Suppliers in the market.
No. ICV will be used as a parameter during commercial evaluation. Should a company fail to submit an ICV Scorecard/Plan, then its ICV will be considered zero.
The ICV Scorecard is based on the last 12-month audited financial statements and is valid for one year, to be refreshed annually. The ICV Plan is forward looking and hence highlights the forecasted spend per contract. It is submitted per contract if requested by the Energy Company.
The ICV score is made up of 5 key components: 1. Spend on goods procured in country 2. Spend on services procured in country 3. Spend on supplier development in country 4. Spend on training of Qataris and residents 5. Investments in fixed assets in country The summation of the 5 elements is then divided by revenue generated in Qatar.
ICV formula takes into account the compensation and benefit only; we have a set a minimum salary requirement for residents and anything below this salary will not be counted towards ICV.
It is difficult to certify the education level of the workforce. Also, the quality of education varies across different local and foreign institutions.
Spend on raw materials purchased from abroad negatively impacts the ICV score, however that spend may be partially offset by local procurement of other goods and services, spend on workforce training, spend on supplier development and depreciation of fixed assets in Qatar. If a raw material is not available in Qatar, then all the companies who import it will be at the same level playing field in terms of ICV.
The denominator of the ICV formula represents a company's revenues in Qatar, hence export revenues are excluded. At the same time, all costs associated with exports are accounted for in the numerator. This does in fact mean that exporting provides a certain advantage in terms of ICV. However, export-heavy companies will be dealt with on a case by case basis in terms of ICV certification to ensure fairness amongst Suppliers in the energy sector.
In the Goods and Services ICV formula components, a company's ICV score is calculated by multiplying spend on a certain subcontractor by that subcontractor's ICV score. Hence the company will be encouraged to improve its subcontractors' ICV scores or opt to work with other subcontractors with higher ICV scores.
These categories are currently irrelevant to the performance of the local economy based upon our defined strategic objectives but might be considered in the future.
Certifiers will be audited and will have their own ICV Scorecards certified by a Tawteen appointed Auditing firm in order to ensure the fairness and accuracy of the certification process.
The design of the formula and calculation methodology leaves little room for interpretation. If a Supplier is not satisfied with its ICV score, it should discuss it with its Certifier first to try to resolve it. If the issue is not resolved, the Supplier can report it to Tawteen.
Each legal entity within an organization must have its own ICV score and the entity bidding for work will have to submit its own certified ICV score, not that of the parent company.
No. The audited financial statement has to be issued within the last 2 years to be considered for ICV certification. latest 12-month audited financial statements will be used as a basis for ICV Scorecard certification, which will be valid for one year from the date of issuance.
ICV Certifiers are financial auditing firms which have been prequalified by Tawteen and are held to stringent ethical and risk management standards and protocols.
There will be two major ICV inputs; the ICV Scorecard and the ICV Plan. The ICV Scorecard will be at a Supplier level based on the previous fiscal year data and certified by a pre-approved Certifier. The ICV Plan is done at a contract level and is based on ICV forecast, applicable for specific contracts.
Suppliers will engage with a preapproved Certifier and submit the ICV Scorecard Submission Template to get the information validated. Upon validation, the Supplier will receive an ICV certificate with their ICV score. Please contact any of the approved ICV Certifiers for further information.
The ICV Auditor will be responsible for conducting audits on the Certifiers. This will ensure that the proper ICV certification policies, procedures, and processes are followed, and that Certifiers are meeting the quality and accuracy standards required.
Average certification can take up to 2-3 weeks, depending upon availability of supplier data. Please contact any of the approved ICV Certifiers for further information.
ICV Score = (Eligible Local Cost / Total Cost) + Bonus
The new formula uses ‘Total Cost’ instead of ‘Total Revenue in Qatar’ in the denominator to accurately reflect and capture in-country spend of suppliers.
• Goods and services, including manpower compensation • Workforce training • Supplier development • Investments in fixed assets
The ‘Eligible Local Cost’ includes the addition of spend on insurance, corporate social responsibility (CSR), government fees, and local farms; and will capture greater manpower compensation.
Suppliers will be able to claim an additional ICV Score of up to 15%, covering multiple strategic behaviors:
• Productivity and automation • Capability building • Investment growth • Qatarization • Exports • Research and Development (R&D) • Sustainability
To calculate the bonus, each lever is assigned specific threshold values (low, medium, high) and a priority weight. Suppliers can choose from the different levers (as per their industry, maturity, etc.) to maximize their benefit.
No, suppliers are not required to get recertified before the expiration of their current certificate.The ICV Score of current certificates will be adjusted by an additional fixed percentage to reflect the market increase. This adjustment will be applicable until the certificate expires. However, suppliers may choose to be recertified before their current certificate expires.
Yes, the supplier can still participate. The necessary measures have been taken to ensure the ICV Program will proceed without interruptions or delays.
Yes, suppliers would still be able to participate in tenders as the grace period represents an extension to the validity of your ICV certificate by an additional 90 days. Nevertheless, suppliers will be required to submit a letter from the ICV certifiers confirming certification process initiation.
This new policy will become applicable from 1st November 2024
Until the end of June 2025, suppliers will be able to obtain a new certificate using the same audited financial statement used for a previous certificate.This policy is applicable to financial statements with year-end of 2022 and 2023.
Yes, if a supplier was issued a SIRI assessment report or ISO certification during the validity of an existing ICV Certificate, they are eligible to submit this documentation directly to Tawteen at info@tawteen.com.qa.
The Tawteen team will review and verify the submitted documents, and upon validation, will reflect the updated information directly to the supplier’s ICV Scorecard.
If you are purchasing from an ICV+ eligible manufacturer, the ICV contribution for the relevant spend is calculated using the manufacturer’s ICV Score, inclusive of the 50% from ICV+.
ICV+ is applicable to commercial evaluations in energy sector’s procurement. If an eligible manufacturer is certified and has ICV+, commercial evaluation uses its ICV Score inclusive of the 50% from ICV+. If an eligible manufacturer only has ICV+ (0% ICV Score otherwise), the 50% from ICV + will be used in the commercial evaluation.
All manufacturers with a Commercial Registration (CRN) issued by the Ministry of Commerce and Industry will be considered for eligibility. The complete eligibility requirements will be published soon.
The blanket score policy provides all eligible micro and small suppliers with an ICV Score of 30% to empower their participation in the local market.
• If a micro or small supplier is not certified, their ICV Score will be 30%. • If a micro or small supplier is certified, but their ICV Score is less than the blanket score (30%), their ICV Score will be 30%. • If a micro or small supplier is certified, and their ICV Score is higher than the blanket score (30%), their certified ICV Score will be used.
If you purchase from an eligible micro or small supplier, the ICV contribution for the relevant spend is calculated by using whichever ICV Score is higher: blanket score (30%) or certified ICV Score.
In tenders/bidding directly with energy companies:
• When such enhancements take effect, micro or small suppliers with a blanket score will be exempted from mandatory ICV, and they will be permitted to participate in tenders but will be treated as having 0% ICV Score in the commercial evaluation. • If a micro or small supplier prefers not to have a 0% ICV then they need to obtain an ICV certificate.
No, the simplified certification is optional for all micro and small suppliers.
Micro and small suppliers may choose to complete the detailed certification, but will be subject to the relevant requirements, which are more stringent than the simplified certification.
Yes, all micro and small suppliers will continue to be eligible for extensions. Extensions will be applicable for both detailed and simplified certificates.
After the original certificate expires (1 year), micro and small suppliers can extend their certificate on an annual basis, for up to 3 more years.
All micro and small suppliers with a Commercial Registration (CRN) issued by the Ministry of Commerce and Industry will be eligible for the blanket score.
ICV Overview
ICV Certification
Suppliers’ ICV Database