Guyana’s Local Content Policy incorporates best practices – Economics Professor

The Local Content Policy that was the product of consultations and work by a Local Content Panel set up by President Dr Irfaan Ali’s decree soon after he entered office last year adhered to all the recommendations of that panel.

This is according to panellist Floyd Haynes. In an interview with this publication, Haynes explained that after examining the completed policy, it is clear that it adhered to the recommendations submitted to the Government in November of 2020.
“It’s an excellent plan. We were empanelled and our role was to come up with recommendations that could help guide the formation of quality. So, we had something on the President’s desk in November and they began to draft the policy and by January they had a first draft. I’ve looked at it and it’s incorporated all of our recommendations.”
“Even prior to our recommendations, we met with just about everyone. We met civil society, we met various stakeholders. We met the oil companies. All the various professions represented. The University of Guyana. Other training schools. But we were very concerned as we were making our recommendations.”
According to Haynes, a concern had been striking a balance to achieve deliverable local content. For one, if the policy was too strident and did not take into account capacity building, forcing Exxon or other international companies to use inefficient services, Guyana would have been negatively impacted.
“There has to be a balance that has to be struck. We cannot come out and force the companies to implement or embrace these policies 100 per cent immediately. There has to be a gradual process. And the reason is because we have to make sure that our businesses and our people are sufficiently trained and have the necessary qualifications and those types of things.”
“So what we’re saying is that, where you can find Guyanese and Guyanese businesses, that can provide the same quality of work that you’re looking for, you should use them rather than seek that service elsewhere. And we don’t want them to use Guyanese businesses just for using sake. Because if we force that, and we force them to use labour and other service that is not efficient, then what that inefficiency does is increases the cost of Exxon doing business.”
According to Haynes, this would end up impacting Guyana detrimentally, hence they made an effort to strike a balance. He noted that the policy has done a good job in this regard. Additionally, it came from a broad-based consultation, within four to six months.
Haynes was confident that the policy encapsulated this and so much more and therefore was confident in the end product. Added to this, he also noted that wide-ranging consultations were conducted and persons had a chance to make submissions on the policy.
After assuming office in August last year, President Ali established a High-Level Local Content Panel to review policy initiatives on local content in the petroleum sector and provide guidance for the development of Guyana’s Local Content Policy and Legislation.
The panel, chaired by Shyam Nokta, compiled and submitted the Local Content Report. Also on the panel were Carl Greenidge, Carvil Duncan, Anthony Paul, Kevin Ramnarine and the Ministry of Natural Resources’ Legal Officer Sasha Rajkumar-Budhan. The end product was a list of recommendations and subsequently, a draft Local Content Policy that the Government had released in February of this year.
The stakeholders’ consultation on Guyana’s draft Local Content Policy for its petroleum sector started in February and President Dr Ali himself opened the discussion from which authorities were expected to receive feedback and comments for the finalisation of the critical document.
Approximately 140 stakeholders were engaged by the panel on the compilation of the report. The report outlines several recommendations to improve the country’s policies and legislation.
Government is likely to hire experts to examine and incorporate comments and suggestions emanating from these stakeholder consultations into the final policy document that will be presented in the National Assembly.