Impact of the ICV in Dubai, Abu Dhabi, Sharjah, UAE on Business with ADNOC
In-Country Value (ICV) program was introduced by ADNOC for its suppliers. The program aims to boost ADNOC’s ICV contribution in Dubai, UAE by focusing on local supplier selection, development of Dubai Nationals, and the localisation of critical functionalities in the oil and gas industry.
How does ICV in Dubai, Abu Dhabi, Sharjah, UAE affect existing operations and structures?
Engaging in business with ADNOC will require carrying out self-assessment by ADNOC’s guidelines, certification of such self-assessment by an accredited certifying body, and drawing up an ICV Improvement Plan in Dubai, UAE.
ICV in Dubai, UAE is mainly relevant during the evaluation phase, where the bidder with the best ICV score would match the best price. Should the bidder with the best ICV score not be able to match this price, the bidder with the second-best ICV score would be asked to match the price, and so forth.
Upon contract award, ADNOC will require the successful bidder to come up with an ICV Improvement Plan that will need to show how the successful bidder will improve his ICV score in Abu Dhabi, UAE. The above highlights that ICV is one of the cornerstones in ADNOC’s procurement process. The evaluation applies to all awarded contracts.
Points to be kept in mind
- Dealing with ADNOC directly or indirectly will have a different impact on their ICV obligations;
- Suppliers will need to obtain an ICV certification in Dubai, UAE; and
- If dealing indirectly with ADNOC, suppliers will not need to come up with an ICV improvement plan in Abu Dhabi, UAE. It is expected that contractors helping suppliers will pass on their obligations resulting from their ICV Improvement Plan to them.
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