In-Country Value (ICV) is economic value added from local operations and spend retained in the country. ICV is measured using a formula that captures how much out of your revenue you contribute back into the economy. This formula specifically measures the retained in-country contribution from local purchases, developing local human and business capabilities, and establishing capital investments.
ICV rewards bidders based on their contribution as it provides them with a commercial advantage when bidding for a tender in the Energy sector.
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:
ICV in Qatar is driven by focusing on the following strategic objectives of localization:
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.
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.
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.
Any cost incurred by the suppliers towards the development of their sub-suppliers counts as 100% contribution to their ICV score.
ICV incentivizes exports since the revenue from export is excluded from ICV formula, which will result in a higher ICV Score.
A
Cost of local tangible goods and materials
Cost of local services (manpower, subcontractors and goods)
B
Cost of training offered to Qatari Nationals and residents
C
Cost of supplier training and certification programs
D
Depreciation of company assets In Qatar
R
Total revenue in Qatar, excluding exports
A
B
C
D
R
A
B
C
D
R