Local content in gcc what all you need to know: icv certificate
Local content in gcc what all you need to know: icv certificate
UAE ADNOC have introduced local content requirements into their legal framework through legislation, regulations, guidelines, industry contracts and bidding practices, in order to maximise the gain of foreign investment
The main intention of icv adnoc program is to encourage more foreign investment to the country in order to increase its local economy, train and hire more workers and to build a local supplier networks for goods and services
In response, companies must rethink their approach to local content if they are to achieve lower costs, access further development programmes and maintain and improve their relationships with host governments.
As national oil companies look to fuel the economic development of their countries, we look at the local content plans of ADNOC, Saudi Aramco and Kuwait Petroleum Corporation.
ADNOC
ADNOC have launched and adopted the In country value certificate, commonly known as icv certificate., programme in february 2018
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It aims to foster local content by encouraging local supplier selection, localisation of critical functionalities in the oil and gas industry and development of UAE nationals – especially SMEs.
All suppliers participating in trade with adnoc will be asked to provide an ICV certificate when participating in tenders, however, while the ICV certification is not mandatory, failing to have one will result in a 0% rating. This does not preclude suppliers from participating in a tender, but will have an impact on their final evaluation score.
Suppliers of goods are issued certificates based on local value-add activities such as local manufacture, investment and employment levels. Suppliers of services are issued certificates based on levels of investment, in-country value of goods procured, subcontractors engaged and employment levels.
