Local Content Bill stops short of stipulating payment period to ensure Guyanese have competitive advantage on contracts

Dec 28, 2021 News

By Kiana Wilburg

Kaieteur News – In light of complaints that oil companies have a long payment period that can last at minimum, 90 days, the PPP/C Government’s Local Content Bill 2021, has sought to put in place, a mechanism that would pave the way for Guyanese to have a more competitive advantage.
The Bill states that oil companies must provide Guyanese nationals or companies, with “timely and appropriate access to contracts and payment terms that facilitate competitive financing.”
Even as the well-intentioned provision demands better terms, its failure to specifically state that oil companies must pay local companies within a period that is shorter than 90 days can still be left open to interpretation and abuse.
Be that as it may, the Bill calls for oil companies and their sub-contractors to provide the government’s Local Content Secretariat with a Procurement Sub-Plan that includes a supply chain management strategy. In that strategy, the companies are required to:
1) Present a forecast of required goods and services;
2) Identify the goods and services to be procured from qualified Guyanese nationals and Guyanese companies;
3) Provide Guyanese nationals or Guyanese companies with timely and appropriate access to information, business opportunities, joint venture and partnership opportunities; technology and know-how, procurement systems and procedures suited to the scale and capacity of the local market, and performance management systems and procedures, with feedback and support for improvement;

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