ADNOC ICV /Vendor Registration

About ADNOC

Abu Dhabi National Oil Company (ADNOC) was established in 1971 to operate in all areas of UAE’s Oil & Gas industry and is headquartered in Abu Dhabi. In terms of numbers as of today, UAE holds the seventh-largest proven reserves of oil in the world at 97.8 billion barrels, all mostly located in Abu Dhabi. 

All new suppliers should complete a one-time registration on the ADNOC Commercial Directory to do business with any of the ADNOC Group companies. Existing suppliers of ADNOC Group companies have been pre-registered as part of this initiative.

Eligibility for ADNOC registration? 

SPC approval, a pre-requisite for ADNOC registration, is ideally given to a company having its license issued by Abu Dhabi mainland licensing authority and having at least 51% of its shares owned by an Abu Dhabi local. Of late, SPC approval is also being awarded to companies formed at the various free zones of Abu Dhabi. However, the approvals for Abu Dhabi free zone-based companies are decided by SPC on case-to-case basis. 

The following types of companies can be registered with ADNOC: 

• Vendor / Trader to supply Products to ADNOC 

• A manufacturer that produces materials or end products to supply them to ADNOC

• A contractor providing Services to ADNOC 

While Vendor and Contracting companies must have their license issued from Abu Dhabi to be eligible for ADNOC registration, Manufacturers from across UAE are eligible to be registered. 

Even Overseas manufacturers who wish to supply products to ADNOC can do so by having a tie-up with the relevant Vendor company in Abu Dhabi. 

Suppliers should register to the ADNOC Commercial Directory in order to be considered for tendering opportunities from across the Group. The Directory has the following features: 

• The online and real-time supplier registration system for all ADNOC Group company suppliers

• Track your prequalification status online 

• Update your company profile online 

• Get invitations for tenders based on your profile (only for ADNOC HQ suppliers)

• Access automated and online tender, RFx and bidding tool (only for ADNOC HQ suppliers)

• Communication between bidders and ADNOC, including document sharing

• Automated notifications and reminder workflow between ADNOC and participating suppliers.

ICV |

Preamble

The In-Country Value (ICV) program was pioneered by ADNOC and implemented in the ADNOC group of companies since 2018, offering suppliers new opportunities to conduct business with ADNOC Group. 

Since late 2019, the program has expanded to cover different governmental and semi-governmental entities. 

In September 2021, the Ministry of Technology and Advanced Technology (MoIAT) has announced the expansion of the program to the federal level in the UAE, therefore, the ICV certification process will be governed by MoIAT.  This shall increase the potential business opportunities for the private sector entities as well as further strengthen an efficient platform for local value add generation. 

The ICV Program

The In-Country Value program consists of two parts: 

• ICV certification and 

• ICV Implementation. 

The ICV Certification part is under the mandate of the Ministry of Technology and Advanced Technology (MoIAT) and is unified and aligned between all ICV participating entities. The unified ICV certificate will be considered by all the participating entities. Therefore, suppliers are only required to issue one ICV certificate, per legal entity that shall be used by all participating entities.  

The ICV Implementation will be unique at each entity level. It represents the way each participating entity will use the certificate in its business activities. Accordingly, the ICV certificate will be considered by each participating entity in accordance with its policy.  

And so, all suppliers are strongly encouraged to undertake an ICV evaluation and certification process to attain an ICV certification. The evaluation will examine your value-added contribution to the UAE in areas including: 

• Local manufacturing 

• Procurement of third party goods and services 

• Local investment and it is Growth 

• Emiratization of workforce 

• Expatriate contribution 

• Generation of income from outside UAE 

The certification verifies the contribution in these areas and the suppliers are expected to complete the Certification Submission Template, approach one of the empanelled certifying bodies who are authorized to issue ICV certificates. 

(The list of the authorized Certifying bodies is available in ICV Certifying Bodies List. Suppliers can download the ICV certification template and refer to Supplier Submission guidelines for assistance in completing the submission documents which are available in ICV Submission Template and Guidelines.)

ICV: IMPROVEMENT PLAN |

All suppliers are required to submit the improvement plan with the ICV bid which would be binding and shall not be revised. 

New considerations were implemented by Nov. 2018, while ADNOC Group applied them partially on some of its significant tenders instantly. The combination of the ICV Certificate in Abu Dhabi, UAE and Improvement Plan will be applied to arrive at an ICV score. The target would be monitored quarterly to ensure the business is on track and any shortfall noticed shall be communicated for an immediate rectification action plan. 

A milestone of 5% of the contract value introduced to ensure the ICV achievement with annual progressive payments shall be made according to compliance with the ICV target. The supplier needs to submit the required ICV certificate in Dubai, UAE to prove the achievement of the ICV milestone for the release of the respective payment. 

The ADNOC tender requires the Supplier to submit an ICV Improvement Plan along with the commercial bid. The ICV Improvement Plan will be a contractual commitment linked to payment against the achievement of actual ICV achieved vis-à-vis the ICV committed as per the ICV Improvement plan.

For monitoring of the ICV actual achieved vis-à-vis the ICV planned as per the ICV Improvement plan, the Supplier shall provide the latest ADNOC ICV certificate from the Supplier upon completion of each Agreement year.