FROM

Companies accessing Local Content Registry

- after swift activation of Local Content Secretariat by authorities

WITH an abundance of opportunities available and on the horizon, companies have started positioning themselves to benefit from the bounties by accessing the Local Content Registry, which is being governed by the recently activated Local Content Secretariat.

This was according to

A Guyanese participating in activities within the local oil and gas sector

the Private Sector Commission (PSC), which related that it supports the swift operationalisation of the secretariat and the relevant mechanisms that facilitate the execution of its mandate.

“The commission is pleased that the registration portal was launched last Tuesday and note that companies have already been accessing the registration process,” the PSC said in a statement.

The register being accessed by companies is one of two, with the other catering to individuals who are seeking employment in the oil and gas sector.

As outlined by various authorities, the registers will be used as a way to bring together local expertise, human capital and businesses, including those operating in the oil and gas sector. The registers are currently available and accessible online via the Ministry of Natural Resources’ website.

The creation of those registers was possible because of the historic enactment of the Local Content Act in December 2021.

The new law earmarks 40 sectors or services and stipulates a minimum percentage of the total value of expenditure on those services that oil companies and their sub-contractors must procure from Guyanese suppliers.

In doing so, the Act provides an enabling framework for the development and expansion of Guyanese companies and, most importantly, business and job opportunities for Guyanese nationals

“When we were considering the Local Content Act, one of the recurring issues that arose was the question of ensuring that Guyanese businesses are not in a disadvantageous position relative to their international counterparts in competing for contracts with the oil and gas sector. “This could arise, for example, where the sec-

tor is procuring a service and the international companies tendering to supply that service enjoy a particular tax treatment on the importation of their capital equipment to provide that service that Guyanese companies might not enjoy,” Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, said during his presentation of Budget 2022 to the National Assembly on January 26.

He went on to say that, in the interest of ensuring that Guyanese businesses could compete successfully under the new local content framework, the government will take steps wherever practicable to minimise disparities arising from the tax system that will disadvantage Guyanese businesses.

This will help improve the competitiveness of Guyanese companies, help secure business opportunities for them, and thereby create jobs for Guyanese nationals.

HIGHER PRIORITY

“Local content in the extractive industries is being given ever higher priority by host governments through a wide array of policy instruments. And oil, gas and mining companies now rate local content among the most significant expectations in the communities in which they operate,” Lead Energy Economist at the World Bank, Silvana Tordo, had said in a special report.

According to the World Bank, policies that govern local content are part of a broader category of policy interventions aimed at strengthening the productive structure of a particular economy.

Speaking recently on the topic of local content, Prime Minister of Barbados, Mia Mottley, called for citizens to have protected opportunities to participate in the patrimony of their countries.

The Barbados Prime Minister said if opportunities are not provided for citizens to participate meaningfully in their country’s development, there could be disruption.

“You cannot move from being a highly indebted, poor country to being where you are today without being given the opportunity first to

Minister of Natural Resources, Vickram Bharrat

bring along your people who have suffered the indignity of that poverty for decades, but secondly without being given the opportunity to participate globally in discussions that will affect your ability to manage the development of your people,” Mottley said.

Guyana’s Minister of Natural Resources, Vickram Bharrat, had said that the new local content legislation was finalised after extensive consultations with civil society, the private sector, as well as the oil and gas companies operating in Guyana. “This legislation is a way of moving our developmental agenda forward,” Minister Bharrat

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