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Figure 1. Proportion of domestic goods and services in total procurement.

Becthel, Alcoa's contractor in building the Aluminum Smelter has reported that in the year 2005 32,2% of their total procurement was domestic. Similar information were not available from contractors working on the hydro project.

Updated: May 12, 2020
Source:
Alcoa Fjarðaál (2020), Landsvirkjun (2020), Bectel (2005)

Metrics, Targets and Monitoring Protocol

What is measured?

Percent of total goods and services (value in ISK) procured by Alcoa, Landsvirkjun and subcontractors in Iceland (Project effect: direct).

Monitoring Protocol

Financial departments of Fjarðaál and Landsvirkjun will collect this information during operation, and ask for data from contractors where possible.

Target

Alcoa, Landsvirkjun and contractors have a policy of taking best offers when buying supplies. Therefore a target is not appropriate but data will be collected and reported

Possible countermeasures

Not applicable

Updated: July 18, 2016

Changes of indicator

The original metric was „ Percent of total goods and services (value in ISK) procured by Alcoa and Landsvirkjun and subcontractors in East Iceland and Iceland. In third phase the metric was changed so that „East Iceland“ was removed from indicator and metric. The reason was that it is impractical to categorize procurement by East Iceland and Iceland and difficult to track.


This indicator was originally number 14.2. It was then named Quantity of Goods and Services Procured in East-Iceland and Nationally and can be found under that number in documents of the project from 2005 and 2006.

The indicator number has been changed twice.

Table 1. Changes to name and number of indicator
Year Nr. Indicator name
2020 4.3.4 Goods and Services Procured in Iceland
2007 3.4 Goods and Services Procured in Iceland

Baseline

Table 2. Proportion of domestic goods and services in total procurement in the year 2007.
Alcoa Fjarðaál Landsvirkjun
79% 75%

Rationale for Indicator Selection

The Fjarðaál and Kárahnjúkar projects have the opportunity to have a significant positive effect on the Icelandic economy through procurement of goods and services from local and National companies. Many supporting industries could experience growth through the development of the projects both during the construction and the operation phases. A stable economy will be one that does not have an over-reliance on one source for income. Monitoring the extent to which the projects contribute to the local and National economy will be useful in assessing the degree of reliance of supporting business on Alcoa and Landsvirkjun.

From phase I/II report on indicators and baseline from April 2005