-AG says

THE Attorney-General of Guyana, Anil Nandlall, S.C., recently announced that the country’s local content laws will be updated to reflect the growing oil and gas industry.

During his online programme, “Issues in the News,” Nandlall commented on a series of issues including the updating of the Local Content Act (LCA) 2021.

“We (Government) have now had two years of the Act being in force. In my respectful view, as I said at the beginning, it was a good initial effort [and] is the first piece of legislation of its type in the entire English-speaking Caribbean. And it’s the first legislation of its type. We said that it would be subject to review as we gain more experience in the sector. And we will also supplement the law with regulations made by the minister [Minister of Natural Resources Vickram Bharrat],” he said.

The laws aim to ensure that companies operating in the country hire a certain percentage of local workers and use local goods and services. The decision to update these laws comes as Guyana prepares to increase its oil production in the coming years.

This means that the country will need to develop its workforce and infrastructure to meet the growing demands of the industry. As a result, the updated laws will play a crucial role in shaping the future of Guyana’s oil and gas sector.

The laws are designed to promote economic growth and development within the country. By requiring companies to use local goods and services, the laws aim to boost local businesses and create jobs for Guyanese citizens.

According to the legislation, companies must procure from Guyanese companies, 90 per cent of office space rental and accommodation services, 90 per cent janitorial services, laundry and catering services, 95 per cent pest-control services, 100 per cent local insurance services, 75 per cent local supply of food, and 90 per cent local accounting services.

The updated laws will likely include new provisions that address issues such as training and capacity building for local workers, as well as requirements for the use of local content in the supply chain.

“I think after we have acquired under our belt, two years of experience as an oil and gas producer, operator, and exporter, and I believe now…we are at a particular vantage point that we can now reveal our experience and start to work on modernising or making adjustments to the local content law and bringing in additional regulations that will strengthen the legislation to enable the government to achieve the core objective of the legislation, which is to protect Guyanese and Guyanese company in the oil and gas sector,” the AG said.

He explained that taking into consideration all that has happened, Guyana will continue to review the matter and ensure that they are inserted in the law, so that the LCA benefits from that experience.

Last year, the LCA was challenged by the Trinidadian-owned company, Ramps Logistics Guyana over the non-issuance of a local content certificate.

Acting Chief Justice Roxane George, S.C., in her ruling, ordered the Local Content Secretariat (LCS) to issue a local content certificate to the company. The LCS has since complied with the order.

Minister Bharrat later announced that the government will be putting new systems in place to block companies from using Guyanese conveniently in order to obtain a 51 per cent stake to merely satisfy the provisions of the Local Content Act.

He added that the government is “serious” about this initiative to stop the “fronting” and “renting” of citizens.

This phenomenon – commonly referred to as ‘fronting’ or ‘rent-a-citizen’ – has the potential to reduce the financial benefits accumulated by Guyanese and runs counter to the spirit and intent of the LCA.

The updated local content laws will have a significant impact on Guyana’s economy in the years to come. With the country poised to become a major player in the global oil and gas industry, the laws will play a crucial role in ensuring that Guyana’s citizens benefit from the wealth generated by the sector.