In an effort to ensure there is a level playing field for all companies participating in the trillion-dollar oil sector, Guyana’s Local Content Bill 2021, proposes several mechanisms to banish opportunities for favouritism and the creation of monopolies. This is according to Attorney General and Minister of Legal Affairs, Anil Nandlall.
The Parliamentarian categorically stated that every Guyanese must have an equal opportunity to benefit from the sector but unfortunately, there have been complaints that “the industry is very close-knit, and a few selective businesses are getting the work.”
The Attorney General said this will not be possible because the government will establish a unit – the Local Content Secretariat – that regulates how companies get work.
The Bill states that the Secretariat will consist of a director and other members appointed by the petroleum minister from amongst persons who are qualified for appointment to the Secretariat by reason of their integrity, and experience, professional capacity, and requisite qualification relating to the work of the Secretariat. Nandlall was keen to note that none of these persons would be a politician.
The Bill further states that the functions of the Secretariat shall include: developing and maintaining measures for the effective implementation of local content by Contractors, Sub-Contractors and Licensees; developing and implementing strategies that will give preference to, or ensure equal treatment of, Guyanese nationals and Guyanese companies; conducting market analysis; making recommendations to the minister; developing formats for local content plans and reporting; developing guidelines including guidelines for local content reporting, procurement, bid evaluation, training, research and development, partnership and joint ventures, and financial and insurance services; and developing and maintaining a Local Content Register of qualified Guyanese nationals and Guyanese companies.
It would also be required to recommend for approval or refusal, Local Content Master Plans and Local Content Annual Plans and proposals for modifications to same; develop auditing procedures and conducting regular audits for the purposes of monitoring and ensuring compliance with the Act; measuring and reporting on the local content performance of Contractors, Sub-Contractors or Licensees; undertaking public education and awareness campaigns, and reporting to the minister on the performance of the Secretariat’s functions and the general administration of this Act.
Nandlall was keen to note that with such vast powers of oversight by the State and not a private organization, favoritism and any issue of discrimination would be excluded.
He went further to note that the Secretariat will have to ensure that the law is administered effectively, particularly as it relates to the procurement process undertaken by oil companies which he stressed has to be transparent and must be accessible to all. Nandlall pointed out as well that companies would not be able to venture outside of Guyana for goods and services unless it can be proven that same cannot be sourced in the country or that it would be impractical to do so.
“So, there is a whole network of provisions in the Act that concatenate to build a strong framework…It is something all Guyanese ought to be proud of,” expressed the Attorney General.
