ICV certification services in Abu Dhabi. ADNOC, Aldar, Economic Department, Abu Dhabi Ports has launched an In-Country Value (ICV) program. The ICV certificate program aims to grow and diversifying the UAE’s economy and creating opportunities for UAE nationals in the private sector. An ICV certificate should be acquired for each legal entity. Having a set up as a local Abu Dhabi LLC UAE Company with a 51% investor will extend your ICV score, although it will be important to acquire the ICV report for the 51% shareholder to get the full advantage. This is where utilizing a corporate shareholder such as PRO Partner Group can help. We already have full ICV registration and as such we can assist foreign companies in giving our own detailed ICV profile to combine with theirs.
What Is ICV Certificate?
ADNOC, Aldar, Economic Department, Abu Dhabi Ports suppliers will have ICV Certificates given by an ADNOC, Aldar, Economic Department, Abu Dhabi Ports empaneled Certifying Body. Suppliers who don’t possess ICV Certification will be allowed to participate in ADNOC,Aldar,Economic Department,Abu Dhabi Ports Group tenders; however, their ICV Score will be considered as “Zero(0)” in the bid evaluation. An ICV certification needs to be obtained for each legal entity, which intends to participate in tender with ADNOC, Aldar, Economic Department, Abu Dhabi Ports or any of its group entities.ICV Certification will be readied based on last audited budget statements, which will not be older than 2 years from the certification year. ICV certification shall be valid for 18 months from the date of the initial issue or once a new set of financial statements are issued (whichever is earlier). The supplier shall be responsible to have the revised ICV certificate within 2 months of the issuance of audited financial statements.
The Goals Of ICV Certification Program Are:
- Emiratisation:
- GDP diversification:
- Strategic considerations:
As a component of ADNOC’s ICV Certification program, all ADNOC, Aldar, Economic Department, Abu Dhabi Ports providers are required to declare their ICV Certificate and their guaranteed ICV score for the past financial year, demonstrating how they are helping to deliver ICV. Business partnerships with ADNOC,Aldar,Economic Department,Abu Dhabi Ports include an ICV appraisal as part of the tender evaluation and award process. Suppliers should approach the ADNOC,Aldar,Economic Department,Abu Dhabi Ports designated confirmation organization for ICV affirmation. All necessary documentation and points of interest that are required by the certifier must be given by the supplier to the motivation behind audit and confirmation. ICV Certification score needs to be finished by an ADNOC,Aldar,Economic Department,Abu Dhabi Ports approved certifying body, for example, PwC, on an annual basis and submitted by the provider to ADNOC,Aldar,Economic Department,Abu Dhabi Ports with each proposal they make.
ICV scores are calculated by evaluating the economic value add within the UAE for the products or services offered by the organization, according to a pre-defined methodology.
Steps To Take Care For ICV Certification Abu Dhabi:
- Goods manufactured
- Emiratisation
- Third-party spend
- Revenue
- Exports
- Investment
- Expatriate contribution
Who Is An ICV Certifier?
ICV Certifiers will go about as outsider independent bodies that will guarantee ICV Scorecards and Plans submitted by suppliers. Their fundamental duties are to:
- Perform test methods and review information gave by suppliers
- Issue Factual Finding Reports, which incorporate ICV Certificates
- Attend and contribute to ICV Certifiers board bi-weekly meetings
- Give access to Caliber to review working papers
- ICV Certifiers are appointed by Caliber, and suppliers can just get certified through the appointed ICV Certifiers listed above.
ICV Certificate- Improvement Plan
Providers to present the improvement plan with the commercial bid. The improvement plan is seen as 01 bindings and will not be revised. During the assessment, the combination of ICV Certificate and Improvement Plan will be applied to land at the general score. The provider with the highest overall score will be moved toward to equate to a target cost with the submitted ICV at his own submission.
The target to be observed quarterly to ensure the provider is on track. Any shortfall noticed shall be communicated to the supplier for a quick rectification action plan. A milestone of 5% of the agreement value will be introduced to ensure ICV achievement. Yearly Progressive payments will be made according to the compliance with ICV target. Supplier to submit the required ICV certificate to demonstrate the achievement of ICV milestone to release the particular payment accordingly.
Steps To Guide On Financial Statement
1. At first, it will be checked if Audited Financial Statements (FS) is available or not?
2. If its available next step is proceeding with ICV review as per AUP based on Audited FS
3. For a company having books of account but no audited financials, use the parent company financials. If Parent company financials do not exist then consider ICV to be zero
4. Parent Company Exists (one level up only) then, checking if Audited FS of Parent company available
5. If it’s available to Proceed with ICV review based on extracted figures forbidding entity from Parent Company FS
Latest News On ICV Certificate
As of December 2019, the Adnoc ICV programme have gained more than Dh44 billion ($12 billion) back into the UAE’s economy and has put more than 1,500 Emiratis in the private sector.
ICV Certification is required where goods are manufactured, revenue generation from outside UAE, investment, Emiratisation, expatriate contribution, and growth in investment, among others. The ICV programme has therefore evolved a new business line and has to be provided from the UAE. Over 3000 companies in UAE is ICV Certified
Companies who do not posses ICV Certificate will be allowed to participate in Adnoc group tenders, even though their ICV score is considered as zero in the bid evaluation and they will be at a disadvantage compared to those with higher ICV score, in a way ICV certificate helps companies to get an opportunity for the first right of getting into tender process.
