The Ministry of Natural Resources through the Local Content Secretariat disclosed on Friday that it has ordered all foreign oil companies to pay Guyanese within 30 to 45 days for their services.
The Ministry’s Secretariat explained that the Local Content Act requires contractors and sub-contractors’ Procurement Sub-Plan to include a supply chain management strategy. It said this strategy should promote local suppliers’ competitive financing and growth with appropriate contract and payment terms. The ministry said this provision was created to ensure that Guyanese nationals and Guyanese companies generate capital to expand while becoming competitive and financially independent.
This unit had previously reported that the Government and the private sector were examining a 30-day payment period for Guyanese and Guyanese businesses which supply goods and services to the nation’s petroleum sector. Upon further assessments and engagements, the Secretariat said it wrote to contractors and sub-contractors instructing them to implement an amendment to their five-year Local Content Master Plan.
Guyana Standard understands that the updated five-year plan must now include a payment period of between 30-45 days upon the correct receipt of an invoice. This will allow Guyanese companies timely and appropriate access to contract and payment terms that facilitate competitive funding and expansion.
The Secretariat said contractors and sub-contractors have shown their willingness to cooperate with this new requirement and have already moved to make the amendment to their Master Plans.
It said, “Suppliers must know that the onus is now on them to submit correct invoices. To see that this is achieved, the Secretariat continues to encourage contractors and sub-contractors to conduct continuous training and suppliers’ engagement forums. These forums will be aimed at upskilling suppliers in areas of the correct preparation of invoices and tenders, and to be appraised of any upcoming procurement opportunities offered by the companies.”
Suppliers who continue to encounter issues with the prolonged issuing of payments are asked to contact the Local Content Secretariat or utilize the Grievance Redress Form via this link: https://petroleum.gov.gy/grievance-redress.
