President Ali to review PSC’s proposed amendments to Local Content Act

The Private Sector Commission’s (PSC) proposed amendments to the landmark Local Content Act of 2021 have been delivered to His Excellency, Dr Mohamed Irfaan Ali for a thorough review.

This development comes on the heels of the government’s commitment to strengthening the current act, ensuring that new and emerging sectors that support oil and gas production are included and opportunities for local businesses are enhanced.

On Wednesday, PSC’s Chairman Komal Singh and Chairman of the Local Content Committee Shyam Nokta met with President Ali at State House where they presented the proposals.

According to the president’s official social media page, the proposals were put together by the commission, following an extensive two-year countrywide consultation process with the local private sector.

The recommendations and scheduled expansion for the act aim to address and strengthen areas that have evolved due to the rapid development of the oil and gas industry.

President Ali has since signalled his intention to review the proposal with the option to amend the legislation.

Other senior executives of the PSC were also present along with the Director of the Local Content Secretariat, Martin Pertab.

Guyana’s landmark Local Content legislation was passed in December 2021, the first of its kind in the Caribbean.

This comprehensive act established specific guidelines for oil and gas companies to follow.

It lays out 40 services that oil companies and their sub-contractors must procure from Guyanese companies and nationals, beginning with office-space rentals, janitorial services, laundry and catering services, pest-control services, insurance services and the supply of food, among several others.

The legislation reportedly generated over US$2 billion in business for local enterprises by October 2024. Approximately 65 per cent of the workforce in the oil sector comprises Guyanese nationals with significant female representation.