Gov’t, Private Sector in agreement on unbundling of contracts, shorter payment period

See the full joint statement from the Ministry of Natural Resources and the Private Sector Commission below:

A team from the Private Sector Commission (PSC) engaged Minister of Natural Resources (MNR), Vickram Bharrat and representatives of the Local Content Secretariat on Tuesday, August 16, 2022, to discuss issues relating to Local Content.

The meeting held in the Boardroom of the Natural Resources Ministry was attended by Chairman of PSC, Mr. Paul Cheong; Chairman of PSC’s Local Content Advisory Group (LCAG), Mr. Shyam Nokta; LCAG Member, Mr. Joel Bhagwandin; Executive Director of the Georgetown Chamber of Commerce and Industry (GCCI), Mr. Richard Rambarran and Executive Director of the PSC, Mr. Ian Chung. The Ministry’s team included Director of Local Content Secretariat, Mr. Martin Pertab, Senior Petroleum Coordinator, Mr. Bobby Gossai, Head of Compliance, Mr. Mark December and Legal Officer, Mr. Michael Munroe.

Principal among the issues discussed was the unbundling of contracts to allow greater participation by Guyanese businesses and the lengthy time it takes for companies to receive payments. On both matters, the PSC and MNR are aligned. In this regard, both sides agreed to continue pushing for the unbundling of contracts and examine a thirty (30) day payment period for small and medium-sized businesses.

Other issues discussed were the need for continuous awareness of Local Content issues and greater participation by members of the business community. It was agreed that the PSC and MNR will convene a one-day forum in September 2022, to discuss Local Content issues. Additionally, both parties agreed to collaborate on conducting outreaches across the country aimed at sensitising Guyanese about the local content legislation and opportunities therein.

As part of efforts to strengthen the Local Content programme and enable more opportunities for Guyanese businesses, Minister Bharrat invited the PSC to be part of an ongoing process that the Ministry is leading to examine the current schedule in the Local Content legislation and propose changes that can be examined.

The PSC, through its Local Content Advisory Group, has been engaging the Local Content Secretariat on a monthly basis to share information and discuss local content issues.