
In revising the Local Content Act, the Local Content Secretariat has said it wants to ensure that local businesses participate fully and benefit from procurement opportunities.
Director of the secretariat, Dr Martin Pertab, told the News Room on Wednesday that in order to address this “burning concern,” the body will develop a schedule of upcoming procurement opportunities and make such information available early and for a longer period of time on their online platforms.
It will also take steps to educate locals about strategies on how to respond to these opportunities.
“We want to ensure that they all have access and given an opportunity to participate. So in terms of addressing that, we will develop a schedule of upcoming procurement opportunities…and they will have the app on their smart phone…you can reach out to the companies directly through the app…” Pertab said about the measures being taken to increase participation by local companies.
The Private Sector Commission (PSC), in support of moves to revise the Local Content Act, has finalised its own set of proposals to ensure that local businesses continue to participate in the oil and gas sector, and that new categories for local participation are identified.
In addition to these proposals, though, Pertab said the secretariat also received recommendations from several local companies on areas they believe should be addressed.
“The intention is to facilitate the growth of existing companies, At the end of the day, the local content law is to ensure that we prioritise Guyanese – to ensure that they grow and become competitive not only in Guyana, both regionally and globally,” Pertab said.
To this end, the body is looking at high-end or big ticket services, such as commodity chemicals, which several local companies have expressed an interest in providing.
Commodity chemicals act as basic building blocks or raw materials used in large quantities to manufacture a wide range of products across various industries, serving as essential intermediates in manufacturing processes rather than being the final product themselves.
They are typically produced in high volumes, are readily available, and are often priced based on market fluctuations, with examples including sulfuric acid, ammonia, and ethylene.
“We are in discussion with the tier one companies and contractors to ensure that they get to provide those services. This is a huge opportunity for Guyanese. We want the local content law to help facilitate the development of those businesses. Once we are capable of providing that service, we will be able to supply chemical not only to Guyana but you have Trinidad and now Suriname,” he explained.
The revisions are intended to address and strengthen areas that have evolved since the introduction of the Act, while covering new and emerging sectors that support oil and gas production.
“It comes on the heels of rapid development in the sector and identifies conditional areas to be included in the law,” the PSC has explained, noting that President Irfaan Ali has signalled his intention to review the proposal with the option to amend the legislation.
Noteworthy is the fact that the new categories are not primarily focused on oil and gas.
“We are looking at the activities that will support broader economic growth because we have to think about Guyana’s economy and sustainability, and so this is where those proposed changes are coming from,” PSC’s Honorary Secretary, Dr. Natasha Gaskin-Peters told the News Room recently.