– Local Content Policy prescribes
GUYANA’S “policy of first consideration” within its Local Content Policy’s mandates that if a Guyanese person, supplier, operator or primary contractor does not meet the criteria to be given first preference in all procurement opportunities, then citizens of CARICOM should be considered.
With the country’s large discoveries in oil and gas, and its rapid development already beginning, it has been long established that Guyana may not have enough skilled persons to meet the specific needs of the petroleum sector. Even before looking to non-Guyanese, the government has encouraged oil and gas professionals within the diaspora to return home to fill job openings as the government works to train citizens and to assist with scholarships to help further their education in the field.
However, Guyana has also sought technical support in its oil and gas take-off from the Caribbean, through interactions with leaders of CARICOM countries with experience in the sector. Nonetheless, the Local Content Policy makes it clear that members of CARICOM come secondary to the “first consideration” of Guyanese and Guyanese living in CARICOM countries.
In exercising the principle of first consideration to Guyanese persons, suppliers, operators or primary contractors, the policy states that the Operatory must: “Identify categories of goods and services required for petroleum operations for which there is evidence of three or more Guyanese Suppliers (or CARICOM Suppliers, including Guyanese Suppliers) with sufficient capabilities, capacity and competitiveness for contracts in this category to be restricted to bid lists, comprising only Guyanese Suppliers (or only CARICOM Suppliers including Guyanese Suppliers), and where this evidence is sufficient to ensure that in restricting bid lists in this way does not drive undue additional cost, delay or risk into projects when measured against industry standards and international price benchmarking.”
The policy urges Operators to look first to the Guyanese labour market to fill positions with Guyanese Citizens who have the appropriate qualifications and experience. It calls on them to identify categories of goods and services required for petroleum operations for which there is evidence of Guyanese suppliers having the required capability, capacity and price competitiveness to be considered for inclusion in an Expression of Interest (EOI) or procurement process.
This can be done directly, as sub-contractors or through forms of partnership with more experienced firms, such as consortia, alliances and joint ventures. The Policy also calls on Operators to explore creative solutions to provide on-the-job training which will enable Guyanese to be hired and then learn while on the job. These creative solutions may include, inter alia, apprenticeships, mentoring, job-shadowing, on-site and off-site training.
To aid in the process, the Minister responsible for Petroleum may elect to establish an appropriate agency to be responsible for the issuance of Supplier Classification Certificates.
Meanwhile, Operators which demonstrate innovation to apply the “ policy of first consideration” for Guyanese persons, suppliers, operators or primary contractors, can be recognised through a Local Content Annual Awards Scheme.
The scheme would be aimed at encouraging Operators to demonstrate innovation and commitment to the principle of first consideration, including the management of associated risk.
