CONTRACTORS and sub-contractors operating in Guyana’s oil and gas sector have been instructed by the Local Content Secretariat that their five-year local content master plan must be updated to include a payment period of between 30-45 days upon correct receipt of an invoice.

According to a release from the Natural Resources Ministry, this will allow Guyanese companies timely and appropriate access to contract and payment terms that facilitate competitive funding and expansion.

“Contractors and sub-contractors have shown their willingness to co-operate with this new requirement and have already moved to make the amendment to their master plans. 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,” the release said.

The Local Content Act required that the contractors and sub-contractors’ Procurement Sub-Plan include a supply chain management strategy. This strategy should promote local suppliers’ competitive financing and growth with appropriate contract and payment terms.

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 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.

Suppliers who continue to encounter issues with the prolonged issuing of payments are asked to contact the Local Content Secretariat or utilise the Grievance Redress Form via this link: https://petroleum.gov.gy/grievance-redress.