Guyana’s Local Content Policy incorporates best practice – Professor of Economics

The Local Involvement Policy which was the result of consultations and work by a Local Content Panel established by the decree of President Dr Irfaan Ali shortly after taking office last year adhered to all the recommendations of that panel.

This is according to panelist Floyd Haynes. In an interview with this publication, Haynes explained that after examining the finished policy, it was clear that he had adhered to the recommendations presented to Government in November 2020.
“It’s an excellent scheme. We were empowered and our role was to offer recommendations that could help guide quality formation. So we had something on the President’s desk in November and they started drafting the policy and by January they had a first draft. I have looked at it and it has incorporated all our recommendations. “
“Even before our recommendations, we met almost everyone. We met civil society, we met various stakeholders. We met the oil companies. He represented all the various professions. University of Guyana. Other training schools. But we were very concerned as we were making our recommendations. ”
According to Haynes, concern had been striking a balance to ensure deliverable local content. For one, if the policy was too stubborn and did not consider capacity building, forcing Exxon or other multinationals to use inefficient services, Guyana would have had a negative impact.
“There has to be a balance that has to be struck. We cannot come out and force the companies to immediately implement or embrace these policies 100 percent. There must be a gradual process. And that is because we have to make sure that our businesses and people are adequately trained and have the necessary qualifications and those kinds of things. ”
“So what we’re saying is that where you can find Guyanese and Guyanese businesses, which can provide the same quality of work as you’re looking for, you should use them instead of trying that service elsewhere. And we don’t want them to use Guyanese businesses just to use ore. Because if we force that, and force them to use labor and other service that is not efficient, then what that inefficiency does is increase Exxon’s cost of doing business. ”
According to Haynes, this would have a detrimental effect on Guyana, and so they endeavored to strike a balance. He noted that the policy had done a good job in this regard. In addition, it came from a wide consultation, within four to six months.
Haynes was confident that the policy summarized this and so much more and so was confident in the final product. In addition, he also noted that extensive consultations were held and that people had the opportunity to make submissions on the policy.
After taking office in August last year, President Ali established a High Level Local Content Panel to review policy initiatives on local content in the petroleum sector and provide guidance for the development of Guyana’s Local Content Policy and Legislation.
The panel, chaired by Shyam Nokta, produced and presented the Local Content Report. Also on the panel were Carl Greenidge, Carvil Duncan, Anthony Paul, Kevin Ramnarine and Natural Resources Ministry Legal Officer Sasha Rajkumar-Budhan. The end product was a list of recommendations followed by a draft Local Content Policy which the Government had released in February this year.
Stakeholder consultation on Guyana’s draft Local Content Policy for its petroleum sector began in February and President Dr Ali himself opened the discussion that authorities were expected to receive feedback and comments for the completion of the critical document.
The panel employed about 140 stakeholders to produce the report. The report outlines several recommendations to improve the country’s policies and legislation.
The Government is likely to hire experts to examine and incorporate comments and suggestions arising from these stakeholder consultations into the final policy document presented at the National Assembly.