Ramps Logistics says denied local content certificate

Jun 23, 2022 News

– PSC expresses concerns about bundling of contracts

Kaieteur News – Trinidadian-owned Ramps Logistics Guyana Inc has complained that it was denied a local content certificate.

Chairman of the PSC, Paul Cheong

The company in a statement on Wednesday said: “The recently passed Local Content Act stipulates that a company must have a local content certificate to operate in the Guyana Energy Sector. Ramps Logistics Guyana Inc. has followed all the required guidelines to apply for this Certificate and was denied. Against that backdrop, we are hosting a press conference to share information that has recently come to hand in the matter that is relevant to all companies and investors seeking to invest in Guyana”.
According to statement Ramps said it is a leading provider of freight forwarding and supply chain management services. “For over 30 years we have been offering transportation and logistics solutions. Our customised technology and solutions support the way our customers want to do business, wherever they are in the world.
Meanwhile, the Private Sector Commission (PSC) in a statement highlighted its concern over the bundling of contracts in the oil sector, thereby hindering local businesses from participating in tenders for the provision of services or goods. On Wednesday, the business body in a statement stated its support for the Government of Guyana’s intention to take strong action against entities found attempting to evade the Local Content Law.
This issue has been highlighted several times since the approval of the legislation in December last year, and subsequent gazetting of the Law. According to the private sector body, “The PSC is concerned by the ongoing practice to bundle contracts which often limits local businesses participating in the value chain. The Commission will continue its advocacy to ensure that the Local Content Law aids the utilization of Guyanese goods and services and supports skills development, and the training and employment of citizens.”
It added that it recognizes the commitment shown by the Government to ensure that Guyanese benefit from the oil and gas industry, but notes that the onus is also on the business community to support implementation of the Act.
To this end, the PSC called on local businesses to get registered with the Local Content Secretariat at Cowan Street, Kingston, Georgetown and share their experiences regarding local content.
Several businesses have been complaining about foreign companies taking advantage of the Local Content Law by bundling contracts to ensure they do not benefit. Today, Ramps Logistics Guyana will host a press conference as it claims it has been denied a certificate to tap into the benefits of the oil sector.
Last month when the Ministry of Natural Resources held its first consultation on the Local Content Law, subject Minister Vickram Bharrat put oil companies on notice that the Government of Guyana will not tolerate the shortchanging of citizens in their own country after it was brought to the attention of the administration complaints of unfair competition and other issues in the industry.
One of the issues highlighted by the Minister was the bundling of contracts.
He explained that local businesses have complained that oil companies have been bundling services for catering, security, garbage collection and other technical offshore support systems as part of one contract. This, Bharrat said, has been posing significant challenge to locals, as they are burdened to offer a service they are not registered to. In fact, this often lends to the oil company failing to achieve the local content targets. To ensure that the breach of the fresh law is not the outcome, the Minister urged that the practice be stopped.