Qatar To Implement Local Value System In Govt Tendering| MENAFN.COM

Saturday, 01 October 2022 05:52 GMT

Qatar To Implement Local Value System In Govt Tendering


(MENAFN- The Peninsula) Lani Rose R Dizon | The Peninsula

Amir H H Sheikh Tamim bin Hamad Al Thani has ratified the Cabinet Resolution No. (11) of 2022 amending some provisions of the Executive Regulations of the Law on Regulating Tenders and Auctions No. (24) for the year 2015. 

With the new amendments to the Law, procurement processes in Qatar will now implement the in-country value (ICV or local value) system wherein companies will now be required to add ICV or local value certificates to their financial bids. 

The ICV system was earlier in place for some government tenders related to oil and gas sector. National products, companies with high local value, as well as those submitting the least expensive monetary bids after ICV calculation will be given preference during the procurement processes. Also, micro, small and medium-sized enterprises (MSMEs) will now be given greater privileges and exemptions with more tenders available to them, officials from the Ministry of Finance (MoF) said at a press conference yesterday. 

The MoF said MSMEs, which are defined by the Ministry of Commerce and Industry (MoCI), are now permitted to have limited participation in tenders valued at less than QR5m. National micro companies as well as SMEs are also waived from bid and performance bonds as well as tender fees if their turnover is less than QR1m. 

Also, micro and small-sized companies will be exempted from half the value of the fee prescribed for classification. 

The amendments are aimed at increasing the participation of non-oil sectors and the private sector in the Qatari economy. The most prominent addition to the Law is the implementation of the ICV system in the country's overall procurement processes, according to the officials.

Addressing the media, Nayef Al Hababi, Director of Government Procurement Regulations Department at the MoF, said:“Perhaps one of the most important additions to the regulation is defining the local value of companies, which means the total amount spent by the contractor, supplier or service provider within the country to develop national business, services or human resources to stimulate productivity in the local economy.

The local value is determined through a certificate of previously executed contracts and the plan presented by the bidder within his bid”. ICV certificates will now be required as a measurement tool during the awarding of tenders to companies. The system is expected to provide valuable business opportunities for local business owners and attract investors to set up businesses in the country. 

With the application of the ICV system, tenders will be awarded to the best bids and preference will be given to those with the least expensive monetary bids after calculating the local value ratio. The amendments also included the development and acceleration of procurement in government agencies by introducing specific time periods to organise the offering procedures and up to a decision within 60 working days, as well as signing the contract within a period not exceeding 20 working days from the date of the contractor submitting the final insurance. 

Implementation of the contract shall be started within a period not exceeding 90 working days from the date of its signing. Determining the duration of the procedures stipulated in the regulation aims to speed up procedures, raise the efficiency of tenders and not incur any losses caused by the length of the previous procedures period. 

It may be noted that the MoF in 2021 launched TAHFEEZ programme, which includes three main pillars, the Qatar In-Country Value (QICV) programme, promoting the development of SMEs, and environmental, social and general governance (ESG) for the financial sector for the development of the private sector in the country.

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