The Government of Guyana, through the Ministry of Natural Resources, was keen to remind today that it remains committed to dialogue with all stakeholders so as to ensure the goals of the Local Content Act are achieved.
Towards this end, Head of Communications at the Local Content Secretariat, Mikaila Prince said in a missive to the press that the Minister of Natural Resources, Vickram Bharrat met with the Private Sector Commission’s Local Content Advisory Committee (LCAG) this week where a slew of principle local content matters were discussed.
Prince said the multitude of issues discussed included the bundling of contracts and lengthy payment periods. She said there was a general agreement to continue pushing for the unbundling of contracts as well as examining a thirty-day payment period for small and medium-sized businesses.
With regard to the Contractors and Sub-Contractors’ practice of contract bundling in Guyana, Prince reminded that on Wednesday, August 17, 2022, the Secretariat issued a final caution for companies to desist from this practice. It also noted that bundled contracts awarded after the law was passed would not be recognized for compliance. This can attract a $50M fine and loss of the Local Content Certifícate.
In conclusion, Prince said the Ministry of Natural Resources and the Local Content Secretariat remain committed to working continuously with all stakeholders in Guyana’s oil and gas sector to ensure maximum participation of locals and the attainment of capacity development.