Investments ramping up in infrastructure, social programmes – Ashni Singh

…says Govt equipping Guyanese to benefit long term from oil & gas

As Guyana’s oil and gas industry continues to grow, the People’s Progressive Party/Civic (PPP/C) Government is continuing to ramp up investments in infrastructure and social programmes, according to Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh.
During a recent broadcast interview, Dr Singh reflected on the Government’s three years in office. Specifically, he noted that during that time, the Government has continued to ramp up its spending in infrastructure and social programmes, alongside the oil and gas sector.
“You’re already seeing ramped up investments in infrastructure, ramped up investments in social programmes and spending in social programmes. Ramped up investments in the things that matter in terms of equipping people to take advantage of the oil and gas sector.”
“So here, for example, the Guyana Technical Training College, a new oil and gas institute being built to train Guyanese people to take advantage of oil and gas opportunities that are emerging. We’re building that right now in Port Mourant,” the Finance Minister said.
According to the Minister, the Government wants to achieve more than accolades on the international stage. They want to ensure the Guyanese people can benefit from the oil and gas sector in a long term, sustainable way.
“Our predominant objective is to ensure that the Guyanese people are able to realise in a sustainable, long-term manner, not in a reckless, opportunistic, short-term manner, lasting benefits from the endowment of natural resources that we have as a country,” Dr Singh added.
It was recently revealed by the Local Content Secretariat that 1500 Guyanese were hired in the oil and gas sector last year alone. Additionally, 2700 Guyanese in total were employed as of 2022 in the various careers the sector has to offer. The Local Content Secretariat also revealed that approximately 850 Guyanese companies and businesses registered in 2022.
According to the secretariat, the time it takes companies and operators to pay locals, a thorny issue for businesses, has also been addressed. This time period, according to the secretariat, has been reduced from 45 to 30 days.
There had been numerous complaints of prolonged delays, as much as 90 days, for the payment of goods supplied or services rendered to major players in the oil and gas sector – an issue which had been engaging the Government’s attention.
As a result, the Natural Resources Ministry, through the Local Content Secretariat, had informed companies operating in the petroleum sector that their five-year Local Content Master Plans, which have to be submitted by year-end for approval, must stipulate a max 45-day payment period upon the correct receipt of an invoice to allow Guyanese companies timely and appropriate access to contract and payment terms that facilitate competitive funding and expansion.
To this end, last year the Natural Resources Ministry started approving the Local Content Master Plans of tier-one contractors, including SBM Offshore and Halliburton among others, who were complying with this new condition.
According to the Ministry, this amendment to the five-year Local Content Mater Plan is enforceable by law and will now see contractors and sub-contractors operating in the nation’s oil and gas sector issuing payment to Guyanese suppliers within 30 to 45 days following the receipt of a correct invoice.
After being passed in the National Assembly in December 2021, the Local Content Act was enacted in January 2022. The Act lays out 40 different services that oil and gas companies and their subcontractors must procure from Guyanese companies.
These include 90 per cent of office space rental and accommodation services; 90 per cent of janitorial services, laundry and catering services; 95 per cent pest control services; 100 per cent local insurance services; 75 per cent local supply of food; and 90 per cent local accounting services.
The Local Content Act mandates penalties, such as fines ranging from $5 million to $50 million, for oil and gas companies and their sub-contractors who fail to meet the minimum targets of the legislation, as well as those who are in breach of the Act. (G3)