Private Sector lauds operationalisation of Local Content Secretariat

…Govt outlines steps for companies to benefit

The Private Sector Commission has lauded the Government’s move to operationalise the Local Content Secretariat and put measures in place for its functioning.
The PSC, in a statement, said it has named President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker, as its nominee to the important Multi-Stakeholder Committee. Tucker also chairs the PSC’s Sub-Committee on Economics and Finance.
The Commission has also established a Local Content Advisory Group, which is being chaired by Shyam Nokta and includes PSC Chair Paul Cheong, Tucker, GCCI Executive Director Richard Rambarran; Chairman of the AMCHAM Local Content Committee, Joel Bhagwandin; and Mellissa Varswyk, Director at AMCHAM and Director at Women in Oil & Gas Guyana.
The Advisory Group would coordinate and advance the local content efforts of the PSC and its member organisations and businesses.
PSC has said it would continue to work with the Government and related entities to educate stakeholders on how to capitalise on opportunities being offered.
Meanwhile, the Government, in announcing the operationalisation of the Local Content Registry, outlined the steps for persons to take in order to benefit. It noted that the Local Content Act mandates the creation of a Local Content Register of Guyanese nationals for employment, and a register of Guyanese nationals and companies from which goods and services may be procured. In keeping with this mandate, two registration options are available; namely, supplier registration and employment registration.
Government has explained that, by using the Supplier Registration Portal, a Guyanese national or Guyanese company can apply for, and be issued with, a Certificate of Registration from the Secretariat for the supply of goods and/or the provision of services for petroleum operations in Guyana.
There are five steps for applicants to take in order to register, and those include the submission of applications by either electronic or hardcopy, which is then followed by acknowledgement of receipt along with a reference number for the application, and the review process would be initiated. Step three would see the relevant checks and balances conducted to either approve or deny the application.
If approval is granted, step four kicks in, which would see the issuance of a Certificate of Registration from the Local Content Secretariat for the provision of goods and/or services within the petroleum sector. The fifth step of the registration process would see the companies or individuals being granted access to the Supplier Registration Portal or the Employment Portal, to be able to access the available opportunities within the sector.
The certificate is renewed annually on the date of its issuance.
The Local Content Bill lays out 40 different services that oil and gas companies and their subcontractors must procure from Guyanese companies by the end of 2022. For instance, these companies must procure from Guyanese companies 90% of office space rental and accommodation services; 90% janitorial services, laundry and catering services; 95% pest control services; 100% local insurance services; 75% local supply of food; and 90% local accounting services.
These are just a few of the services highlighted in the first schedule of the Local Content Act. The Local Content Act mandates penalties 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. These fines range from as low as $5 million to as high as $50 million.