Having a Local Content Certificate not only demonstrates to regulators that you are a legitimate Guyanese company or joint venture in the oil and gas supply chain, but it also puts you in an advantageous position during the evaluation process for contracts. This clarification about the importance of the certificate was recently provided by the Director at the Local Content Secretariat, Dr. Martin Pertab.
During an exclusive OilNOW interview, Dr. Pertab said this is the understanding he hopes all international companies coming in would have; that the certificate and law by extension seeks to create “win-win” opportunities for all players across each category of work.
“Think about it. You enter this country, you become a partner with a Guyanese firm for example and there is immediately – that shared burden of financial responsibility. Once you have satisfied the criteria in the law, you are awarded your certificate which now gives your service legal protection,” expressed the Director.
During the procurement and evaluation process, Dr. Pertab explained that companies have a guideline to follow for scoring bids. He said a joint venture or any firm with a certificate automatically attracts five points as part of their total score.
He said, “There are three main categories: finance, technical and local content. The last carries 5%. So, when contractors have to score companies during the evaluation process, 5% of the total weight goes to you and then the other categories are evaluated. So, it puts you in a better position to have the certificate.”
Dr. Pertab agreed that clearly, the law has been instrumental in allowing the certificate to be a powerful tool for any company to have.
The Director also stressed the importance of the law which influences the procurement process much to the benefit of Guyanese. He recalled that the law currently ringfences 40 categories of work for participation of locals to varying degrees. These include transportation, catering, janitorial services, immigration support services, among others.
Notwithstanding those areas, Dr. Pertab shared that companies have started prioritising Guyanese labour and services in other fields.
There are currently over 350 companies on the Local Content Register and less than 75 in the pipeline for processing.
Dr. Pertab said this overwhelming response in just the first year of the law being implemented proves that stakeholders are willing to get on board and help build local capacity.
He said the process has already commenced for a review of the law to close existing loopholes that may lead to abuse.