Bestaxca Accounting plays an important role in obtaining ICV certification and developing a plan to improve ICV scores for companies working directly as contractors or indirectly as subcontractors with government and parastatal institutions in the UAE.
We facilitate this in the following ways:
- Recommending a reorganization of organizational processes
- Preparing a draft ICV template
- Continuous monitoring to maintain a high ICV score
- Preparing plans to improve ICV
- Provide specialist staff with the skills needed to improve ICV scores
A high ICV score gives companies an advantage in the ADNOC selection process. Bestaxca Accounting develops clients’ understanding of ADNOC, Aldar, the Finance Department, Abu Dhabi Ports In-Country Value Certification and the factors that influence ICV scores.
ICV is a cornerstone of the ADNOC procurement process in the UAE. The assessment applies to all contracts awarded. Trading directly or indirectly with ADNOC will have a different impact on suppliers’ ICV obligations. Depending on their relationship with ADNOC, suppliers will be required to obtain UAE ICV certification and prepare a UAE ICV development plan themselves or seek assistance from supporting suppliers.
What is ICV certification?
The Abu Dhabi National Oil Company (ADNOC) has introduced an In-Country Value Certificate programme, which will come into effect from 1 April 2018. One of the requirements of the programme is that all suppliers established in the UAE must obtain an In-Country Value Certificate from the ADNOC ICV Certification Agency.
At the same time, suppliers must obtain a calculated ICV score showing their contribution to ICV shipments in the previous fiscal year. Contractors who are not interested in obtaining an ICV certificate may participate in the ADNOC group selection process, although their ICV score will be considered as zero.
In the UAE, ICV is a cornerstone of the ADNOC procurement process. The assessment applies to all contracts awarded. Contracting directly or indirectly with ADNOC has different consequences on the ICV obligations of suppliers. Suppliers will be required to obtain their own ICV Certification Services In Dubai and prepare a UAE ICV development plan or seek assistance from supporting suppliers, depending on their relationship with ADNOC.
What is an ICV development plan in the UAE?
An ICV Development Plan in the UAE is a contractual obligation linked to the payment of ICVs actually achieved for ICVs committed under the ICV Development Plan. The two types of ICV Development Plans are company-based plans, which are required for the annual ICV certificates issued in the UAE during the contract period, and contract-based plans, which further require the contractor to employ a project controller to monitor the project expenditure. SAE’s ICV Improvement Plan is considered mandatory, is used to obtain ICV certification, and is verified quarterly to ensure that the company is progressing according to the plan.
ICV certification bodies in the UAE
The UAE’s In-Country Value programme has been the most practical tool to ensure economic growth in the right spirit. ADNOC has selected certification bodies in the UAE to provide ICV-related certification services. The main services provided by ICV certification bodies in the UAE include: reviewing information on proposed suppliers, reviewing the procedures used by suppliers to determine ICV scores, issuing ICV certificates and renewing suppliers’ ICV certificates. The UAE ICV certification bodies also support ADNOC or other participants in the ICV programme and participate in meetings with other certification bodies.
What is the ICV certification process and how does it work?
The UAE’s In-Country Value Creation (ICV) programme aims to grow and diversify the UAE economy. The UAE’s ICV certification process involves collecting data from the supplier’s data submission form, following agreed procedures, preparing a report of significant findings, and finally, if requirements are met, the ADNOC-approved authorities sign off on the UAE’s ICV certification. The implementation of the ICV Certification Services In Dubai of suppliers includes consultation with stakeholders, review of current procedures, review of information completed on the supplier information form and final negotiation of the certification process.