The Guyana Manufacturing and Services Association (GMSA) is optimistic about the government’s recent announcement of a bid round for 14 blocks offshore Guyana.
GMSA is the main advocacy body for local manufacturers and companies of related services and operates as a conduit between these industries and the government.
During a press conference on Monday, GMSA President Rafeek Khan urged businesses to take full advantage of the potential opportunities that will follow.
According to Khan, the government’s announcement opens the door for enhanced local capacity and overall local content development.
He pointed out that it could take a year or more for winning companies to begin exploration, which gives Guyanese ample time to prepare themselves to provide goods and services.
It has been almost one year since Guyana passed the landmark Local Content Act in the National Assembly and according to Khan, many local companies have benefitted and built capacity since then. “It’s been a year since businesses have had the opportunity to prepare since local content legislation. And I’m confident to say many of our businesses have built capacity and are ready for 2023, as we’re preparing for an adjustment to local content legislation in regard to other sectors,” he said.
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The GMSA President noted that while the initial Act focused on carving out opportunities and quotas for service providers and various other industries, other important issues remain including contract bundling. This practice allows companies to consolidate related scope of work into one contract, which can often disqualify smaller companies.
According to Khan, there are several services Guyanese can provide if contract bundling is eradicated.
“We have logistics, trucking services, we have training services, we have ICT services, we have fresh fruits and vegetables being produced from the President’s initiative with the shade house projects across the country… I visited a restaurant recently and I was surprised to taste our local steak. We are still importing steak into the oil and gas sector,” Khan said, attributing this situation to contract bundling.
Companies may employ the contract bundling mechanism to be efficient and cost effective. However, like the GMSA, the Georgetown Chamber of Commerce and Industry (GCCI) also shunned the practice. They had said that micro, small and medium-sized enterprises (MSMEs) are unable to compete for these contracts since the practice sets an artificial barrier that hinders their ability to secure business.
