Private Sector wants more areas ring-fenced for local content
While saying that there is more capacity and skills available, Private Sector Commission Chairman Paul Cheong has called for more areas to be ring-fenced for Guyanese under the country’s local content law.
Cheong made the call on Thursday when the PSC hosted a Sensitisation and Local Content Forum at the Pegasus Corporate Centre, in Georgetown.
According to Cheong, since the establishment of the First Schedule of the Local Content Act last year, the capacity and skills of Guyanese have expanded, with many companies investing and establishing partnerships. Against this background, he said the PSC is pushing for more opportunities for Guyanese businesses. “It is now up to us to up our game to deliver quality services in keeping with the standards and requirements of the oil and gas sector,” he further added.
At the start of the month the Local Content Secretariat
had reported that internal assessments showed that Guyanese companies supply goods and services across 37 of the 40 areas ring-fenced for nationals in the First Schedule of the legislation.
Cheong noted that Guyana has come a far way on local content in a short space of time and in this regard he commended the government for standing firm on the issue and passing legislation. “This legislation has opened the door for Guyanese companies to participate. We have much work to do to show we are up to the task,” he said.
Cheong, who welcomed the government’s recent statement regarding the drafting of regulations and guidelines to accompany the Local Content Act, also said the PSC stands ready to work with it to ensure that these are put in place at the earliest time to enhance and strengthen the legislation.
At the same time, he also urged the establishment of the Local Content Advisory Committee, in keeping with the legislation, while noting that the PSC has already identified its nominee. Under the Local Content Act, the committee is charged with supporting the Local Content Secretariat in an advisory capacity and to provide the minister with recommendations.
Cheong said the law and its regulations and guidelines are extremely necessary for Guyanese businesses as instruments to level the playing field even as they grow and gain experience in the oil and gas sector.
For its part, the PSC, he pointed out, established a Local Content Advisory Group after the enactment of the Local Content Law in December 2021 and it has been meeting monthly with the Local Content Secretariat to discuss key issues and bringing to the attention of the Secretariat the concerns of the local private sector. These, he said, range from the payment period for small and medium sized businesses, contract bundling, and fronting to get companies registered.
He commended the Ministry of Natural Resources for the efforts made at addressing the payment period but reported that despite some improvement there is much more to be done.
With regards to contract bundling, he noted cases where companies are issuing tenders for a minimum number of services under one contract when specific areas could be competitively tendered to allow local companies to participate. As a result he questioned how can there be a commitment to local content and the participation of Guyanese businesses in the value chain when there remain efforts to maintain contract bundling.
On the matter of “fronting” or “rent- a-citizen” for registration, he said while the PSC understands that the Local Content Secretariat is monitoring the practice and the legislation is being enforced to address such matters, such cases must be highlighted whenever they rear their heads in the business community.
Cheong also called on the government for greater monitoring and enforcement under the current legislation,
saying that it is only through such activity that there will be compliance and a serious effort at effecting local content.