In Guyana, similar issues can be raised with respect to the organisational framework of the Local Content Secretariat and the Local Content Advisory Committee. The composition of both bodies is strongly influenced/determined by the ruling party of the day.
Another issue worthy of observation is the fact that the Act gives the Minister of Natural Resources a wide ambit of discretionary powers. Pursuant to Section 7(2) of the LCA, he has the authority to waive the requirement to comply with the minimum local content levels where:
- a petroleum operation is deemed to be of national interest;
- a Contractor, Sub-contractor or Licensee is unable to comply with the minimum local content levels in the performance of any petroleum operation due to the lack of current domestic capacity; or
- compliance with a Master Service Agreement executed by a Contractor, Sub-contractor or Licensee which is still in force immediately before the coming into operation of this Act prevents the Contractor, Sub-Contractor or Licensee from complying with the minimum level content levels set out in the first schedule.
However, this provision can serve as a flexible mechanism to be used if a Guyanese supplier is unable to meet a particular requirement in the sector. In January of this year (2022), in what might appear to be a leaked email, executive members of the CARICOM Private Sector Organisation (CPSO) contended that the LCA seemingly violates several provisions of the Revised Treaty of Chaguaramas (RTA) by allegedly placing restrictions on nationals of other member states wishing to provide goods and services in Guyana2. In a detailed analysis of the CPSO contention, Joel Bhagwandin, a financial analyst and writer, highlighted in his
2Joel Bhagwandin, CPSO’s threat to challenge Guyana’s Local Content Act, OILNOW, https://oilnow.gy/featured/cpsos-threat-to-challenge-guyanas-local-content-act/
