IN-COUNTRY VALUE (ICV) CERTIFICATION
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ICV CERTIFICATION SERVICES IN UAE
ADNOC announced an ICV program executed from 1st April 2018 which requires that all suppliers of goods or services to obtain ICV certification from the ADNOC ICV Certification Agency and calculate and declare their certified ICV score for the previous financial year, to demonstrate how they are helping to deliver ICV. Suppliers who do not hold the ICV Certificate shall be allowed to participate in the ADNOC Group tenders, but, their ICV score will be considered as “Zero” in the bid evaluation and hence may be at a disadvantage to those with a higher ICV score.
UNIFIED ICV CERTIFICATION PROGRAM
In 2019 and 2020, the Department of Economic Development, Abu Dhabi Ports and Aldar Properties have joined hands with ADNOC Group to broaden the ICV certification process across various sectors in Abu Dhabi and the UAE. It is likely that more entities will join the ICV certification platform.
AREAS CONSIDERED FOR UNIFIED ICV CALCULATIONS
(a) Goods Manufactured (only for Suppliers holding Industrial License)
(b) Third-Party Spend (only for Suppliers holding non-Industrial License)
(e) Expatriate Contribution
(f) Bonus – i) Revenue from outside UAE. ii) Emirati Headcount
WHY HAS THE ICV CERTIFICATION PROGRAM BEEN IMPLEMENTED IN UAE?
An In-Country Value (ICV) program was announced for Abu Dhabi National Oil Company (ADNOC) Group Companies with the following objectives:
(a) Emiratization: Creating additional employment opportunities for Emiratis in the private sector
(b) GDP Diversification: Supporting UAE GDP diversification by sourcing additional goods and services within the UAE; and
(c) Strategic Considerations: localizing strategically critical parts of the value chain for selected categories.
WHO NEEDS A UNIFIED ICV CERTIFICATE?
Companies working directly as suppliers or indirectly as sub-supplier with the following Govt. and Semi Govt. Departments are required to acquire the unified ICV certificate.
- ADNOC Group Companies
- Abu Dhabi Department of Economic Development
- Aldar Properties
- Abu Dhabi Ports
- Environment Agency Abu Dhabi
- All other Govt Departments of Abu Dhabi
- Companies submitting tenders through Musanada (Abu Dhabi General Services Company)
INFORMATION REGARDING ICV CERTIFICATION SERVICES
- Suppliers shall have ICV certificate issued by an ICV Empaneled Certifying Body.
- Each license of a Company is considered as an independent legal entity even if the ownership is the same. But in same emirate if a company have more than one branch but similar activities under same licenses, then one combined ICV certificate is allowed for the Company in that Emirate.
- All figures entered in the ICV certificate template should tally with Supplier’s latest audited Financial Statements. The audited financial statements shall be as per the International Financial Reporting Standards (IFRS), and shall not be older than 2 years from the certification year.
- For newly established Companies (less than 10 months old) that do not have audited financial statements, the Management Accountsfor a period of up to 9 months can be used for ICV calculations. Any management accounts greater than 9 months will be required to be audited.
- The ICV certificate shall be valid for a period of 14 months from the date of issuance of Audited Financial Statements. The supplier can get recertified during the validity of the ICV certificate if he chooses to, using the same audited financial statements, but the validity of 14 months from the first issue will remain same.
- Upon appointing an Empaneled Certifying Body, Supplier shall not change the Empaneled Certifying Body for that year’s ICV certificate without proper justifications.
- Supplier’s submission shall consider all Supplier’s costs incurred and revenue earned during the financial year.
ICV IMPROVEMENT PLAN
When the terms of the tender are required, the Supplier shall submit an ICV Improvement Plan along with the commercial bid.
The ICV Improvement Plan will be a contractual commitment linked to payment against the achievement of actual ICV achieved vis-à-vis the ICV committed as per the ICV Improvement plan.
Types of ICV improvement plan
- Company based Improvement Plan
- Agreement based Improvement Plan
The weighted average of the Planned ICV% as per ICV Improvement plan along with the ICV certificate score shall be considered to arrive at the ICV ranking of the Bidder during commercial evaluation. For monitoring the ICV actually achieved vis-à-vis the ICV planned as per the ICV Improvement plan, the Supplier shall provide the latest ICV certificate from the Supplier upon completion of each Agreement year.
A Milestone towards the achievement of ICV for an amount of 5% of the Agreement value shall be included in the Contract and this payment will be released after completion of each year from the commencement date of the Agreement in proportion to the actual ICV achieved as per the latest ICV certificate.
As a Trusted ICV Service Provider ELEVATE will offer you
- The client’s financial statement will be audited and signed.
- Our Team will help you understand about the ICV services and the determining factors that affect the ICV score.
- We will Suggest on how to improve ICV score and include the incremental effect of each step in our impact analysis report. This includes mainly, among other steps, the recommendation of restructuring in organizational processes to increase ICV score.
- Draft the ICV template, based upon the records of financial year under certification that can be presented to ICV certifying body to ensure the achievement of ICV score as per drafted template.
- Draft the ICV improvement plans that is required to be submitted with the tenders of the ADNOC.
- Elevate First Accounting & Auditing’s has exclusive tie up with Al Raqamiya Management Consulting that is one Certifying body for ICV