ADNOC's In-Country Value Program - Improvement Plan and Payment Mechanism
Overview
Since 1 April 2018, all suppliers of goods or services to ADNOC and its subsidiaries are required to calculate and declare their ICV score. To date, it is estimated that more than 2000 suppliers have already obtained ICV certification. Direct suppliers to ADNOC are asked to submit an ICV Improvement Plan with their bids. This legal briefing gives an overview of how to deal with the ICV Improvement Plan, how the ICV Payment Mechanism works and other related matters.
Practical Guidance
ICV Improvement Plan
ADNOC requires bidders to come up with an ICV Improvement Plan prior to submitting their bids. There are two different kinds of Improvement Plans:
Agreement specific Improvement Plan, and
Company-specific Improvement Plan.
Agreement specific Improvement Plans are used for high-value EPC or construction projects. In all other cases, bidders will be asked to submit a company-specific improvement plan.
In any case, the ICV Improvement Plan will need to show how the successful bidder will improve their ICV score over the agreement or project period by annual ICV target scores.
In the company-specific Improvement Plan, bidders will need to include:
Target ICV scores; and
Actions that will be undertaken to achieve the target ICV scores.