Understand what qualifies as “local” in the draft Local Content Policy (Part 1)
Kaieteur News – In light of the Government’s consultation period of one month for the draft Local Content Policy, Kaieteur News will highlight some of the key points that you should pay close attention to.
But before we dive into the note provisions, it is essential that one understands the purpose of the document and the need to make certain critical terms clear.
According to the draft document available for inspection on the Ministry of Natural Resources website, Local Content is often considered the sum of inputs of local goods and services, including employment, provided to oil and gas operations. This happens when operators hire local people as workers or contractors or buy goods or services from them.
Guyana’s policy must therefore seek to: increase the level, quality and benefits of participation in the value chain of the Guyanese petroleum sector.
To do this, one of the key things to pay attention to is the definition of local content.
The policy proposes that the term Local means:
• In the case of Individuals, Citizens of Guyana, as defined under the Constitution of the Guyana Cooperative Republic Act, Chapter 1:01, 1980, which includes among other things a person born in Guyana (Article 43) and a person born outside out to Guyana, the child of a parent with Guyanese Citizenship (Article 44).
• In the case of Companies, a majority majority (51%) is owned by Companies.
• In the case of goods and services, those provided by local individuals or companies. “Guyanese Person” or “Guyanese Citizen” or “Guyanese” means a person or persons holding Guyanese Citizenship under the Constitution of the Guyana Cooperative Republic Act, Chapter 1:01, 1980, which includes, among other things, a person born in Guyana ( Article 43) and a person born outside Guyana who is the child of a parent with Guyanese Citizenship (Article 44).