The Ministry of Natural Resources, through the Local Content Secretariat, has instructed contractors, sub-contractors, and other stakeholders operating in Guyana’s oil and gas sector to pay locals between 30-45 days.
In a press statement on Friday, the Head of Communications at the Local Content Secretariat, Mikaila Prince, revealed this.
Local businesses operating in the oil and gas sector have been lamenting the 90 days timeframe these oil companies have been taking to pay them for goods and services.
According to Prince, the Secretariat has been actively engaging the contractors, sub-contractors, and other stakeholders for a 30-day pay period for Guyanese businesses supplying the nation’s petroleum sector.
“Upon further assessments and engagements, the Secretariat wrote to contractors and sub-contractors instructing them to implement an amendment to their five-year Local Content Master Plan,” Prince noted.
She added that the updated payment timeframe would allow Guyanese companies timely and appropriate access to contract and payment terms that facilitate competitive funding and expansion.
“Contractors and sub-contractors have shown their willingness to cooperate with this new requirement and have already moved to make the amendment to their Master Plans,” the Communications Head said while noting that the suppliers now have to ensure that the correct invoices are submitted.
Moreover, she disclosed that the Secretariat encourages contractors and sub-contractors to conduct continuous training and supplier engagement forums.
These forums will be aimed at upskilling suppliers in areas of the correct preparation of invoices and tenders and to be appraised of any upcoming procurement opportunities offered by the companies.
“Suppliers who continue to encounter issues with the prolonged issuing of payments are asked to contact the Local Content Secretariat or utilize the Grievance Redress Form via this link: https://petroleum.gov.gy/grievance-redress,” the statement concluded.
Just over two weeks, Vice President Bharrat Jagdeo had said the government would be cracking down on companies exploiting some loopholes in Guyana’s new Local Content laws.