– Dr. Bynoe says Local Content Policy will not be too inflexible and prescriptive
-remains open to suggestions from the private and public sectors

GOVERNMENT remains open to considering recommendations from the public and private sectors that would lend to a practicable Local Content Policy which would guarantee Guyana her fair share, Energy Department Director, Dr. Mark Bynoe said.

“Government is always willing to incorporate comments from any segment of society which would lend to a more robust, coherent and plausible policy,” Dr. Bynoe told the Guyana Chronicle during an exclusive interview on Friday.

The policy document, when adopted by the National Assembly, would outline the framework on which local content will be understood, developed, measured and secured.
“Local Content under the Guyanese narrative will be understood as the sum of inputs of local goods and services including employment across the oil and gas value chain.

The primary aim and objective of the policy is ensuring the education, inclusion, and advancement of as many as possible in the value chain of the oil and gas industry,” the draft policy document explains. In an effort to maximise benefits and retain value from Guyana’s petroleum resources, considerable focus will be given towards capacity development, local content and value addition. Additionally, the policy framework is built on five themes: value maximisation, training and employment, supplier development, ownership and taxation.

The Draft Local Content Policy, which is in its second phase of development, was circulated to multiple stakeholders by the Ministry of Business, however, according to Dr. Bynoe, based on reports received, the response has been below par.

The Georgetown Chamber of Commerce and Industry (GCCI) is among the few entities that have made submissions in the second round of consultation. Earlier this month, GCCI submitted to government, what it called, a ‘Model Local Content Legislation.’

The model legislation, which was seen by the Guyana Chronicle, defines Guyanese companies as “companies that are registered in Guyana where 51 per cent of the share capital are owned by citizen(s) of Guyana; where the board meetings of the said companies are held in Guyana; the head office of the company is located in Guyana and; seventy per cent of the workforce of the company follows suit with the definition of a citizen of Guyana as defined in the Guyana Citizenship Act of 1967.”

Part II, Section Three of the crafted GCCI Local Content Bill stipulates that an operator or contractor must ensure that first consideration is given to Guyanese companies in the provision of goods and or services directly related to the petroleum industry.

“In the event that a Guyanese company is not selected to provide a good and or services, the burden of proof lies with the relevant party in the form of the operator or contractor to demonstrate why [the] Guyanese company has not been selected,” Section Four reads. It also includes provision for human capital development and monitoring and accountability.

SHOULD NOT BE INFLEXIBLE
But the director of the Department of Energy is advising against making the Local Content Policy too prescriptive. He said as the country moves closer towards finalising the policy document, Guyanese must determine whether they have the capacity to take advantage of the Local Content Policy.

“We have to be careful that we don’t make it so prescriptive that it becomes almost inflexible to implement. It has to be based on our state of development, it has to be based on our realities. It is all well and good for one to speak about international best practices and while we aspire for that, we have to be cognisant about where we are at our specific time in development,” Dr. Bynoe said.

He noted that international best practices are generally contextual, emphasising that it is “not one size fits all.”

Referencing to the ‘model legislation’ put forward by GCCI, the DoE director said stakeholders should push for a policy that is realistic in a Guyana setting.
In making his case, Dr. Bynoe pointed to the local construction sector, noting that were the country too prescriptive, there would have been greater difficulties in facilitating key projects.

“For example, we are opening up the East Coast Highway, we are seeking to open up Sheriff Street, we are seeking to rehabilitate the Linden/Soesdyke Highway, we are seeking to open up the bypass road from Ogle to Diamond, the point is, we are challenged to have materials of specific durability, density and quantum for just the East Coast road. If you make Local Content so tight don’t you think that we will have similar challenges in the oil and gas sector?” he reasoned.

Dr. Bynoe added: “It has to be unfolding, it has to be amended as you go along, it is not going to be cast in stone, so I am saying where there is credence, it will be included within the Local Content Policy.”

The DoE Director made it clear that at this stage, the government would not state what will and will not be included in the draft policy because there is still room for consultation.
“We are not about sitting here and saying that this is what we are proposing and it must be implemented,” he said while adding that “we are not afraid to have the involvement of the public and to have their criticisms because ultimately a lot of people out there, I think, their hearts are in the right place, it’s the approach about how we get it done,” Dr. Bynoe said.
The Policy Content is scheduled to be completed in the first quarter of 2019 for submission to the National Assembly for its stamp of approval.