Private Sector finalises proposed revision to Local Content Act

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.

The proposal follows a two-year consultation across the country, and according to the PSC’s Honorary Secretary, Dr. Natasha Gaskin-Peters, the body aimed to have a comprehensive assessment of companies in order to gauge capacity so that it can make recommendations to drive local content.

During a meeting with the PSC at State House, President Dr. Irfaan Ali received a copy of the proposed amendments earlier this week.

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 Ali has signalled his intention to review the proposal with the option to amend the legislation.

The booklet, with recommendations and scheduled expansion for the Act, was presented to the President by the Chair of the PSC, Komal Singh, and the Chair of the Local Content Committee, Shyam Nokta.

In an interview with the News Room on Thursday at the PSC office on Waterloo Street, Georgetown, Dr. Gaskin-Peters, who is also Director of Fiscal Frontier Inc. and MEP Engineering Services Inc., shared that over the past two-plus years, the PSC has undertaken several qualitative and quantitative assessments of companies under the Act.

She disclosed that one year after the Act came into effect, the PSC conducted an initial assessment based on the 40 categories identified for the local private sector.

After conducting another assessment last year, the body combined all of the information into the proposed changes that were presented.

“Specifically, we looked at procurement, ensuring there is equal access for all Guyanese companies when it comes to the bidding process. We also looked at the initial 40 categories to see if we saw growth and how those numbers can be revised upwards, as well as some new categories that should be included in the Act.”

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.”

Gaskin-Peters emphasised that the intention is to ensure that local companies continue to benefit from the growth that is occurring in the country, and that they take full advantage of opportunities in other sectors also.

“Over the past four-plus years since the Act, we are seeing companies growing at an exponential rate. We have several companies that have moved from fewer than five employees to more than 50 employees,” she noted.