Private Sector hands over recommendations for improved local content law

President Dr. Irfaan Ali has received a copy of the private sector’s proposed revision to the Local Content Act during a meeting hosted at State House. A public notice by the President’s Office Thursday noted that the proposal, which was put together by the Private Sector Commission (PSC) following a two-year consultation process across the country with the local private sector operators, is intended to address and strengthen areas that have evolved since the introduction of the act while covering new and emerging sectors that support oil and gas production.

The revised document comes on the heels of rapid development in the oil and gas sector and identifies conditional areas to be included in the law, the notice stated. President Ali signalled his intention to review the proposal with the option to amend the legislation.

The booklet with recommendations and scheduled expansion for the act was presented to the President by the Chair of the Private Sector Commission, Mr. Komal Singh, and the PSC Chair of the Local Content Committee, Mr Shyam Nokta. Other senior executives of the PSC were also present along with the Director of the Local Content Secretariat, Mr. Martin Pertab.

Recognising the need to properly manage the provision of goods and services to the lucrative oil sector, as well as the protection of local businesses here, the Committee on Local Content was established by a decision of the PSC Council on December 9, 2021, following the enactment of local content legislation in December 2021 and which brought into effect the Local Content Act No. 18 of 2021. The group is tasked among other things to keep track of key developments regarding local content in the Oil and Gas sector which will significantly impact the economic and social development of Guyana. The group is tasked to critically review policies, plans, and initiatives in relation to local content and the implementation of the provisions of the local content legislation, to consult with members of the private sector and other stakeholders on key issues regarding local content so as to inform the PSC’s position, to identify and develop positions on issues regarding local content which are important to the private sector and to maximize local content opportunities for Guyanese.

Some of the challenges the country’s local content legislation seeks to address include the building of a skilled workforce for the oil and gas sector, concerns about “fronting” where foreign companies use local names to meet local content requirements without genuine local participation. The legislation also seeks to address capacity building within local businesses, better enforcement mechanisms, and navigating the transition to a rapidly developing oil and gas sector while ensuring equitable access for local companies to opportunities.