Junior Minister of Public Works, Deodat Indar, has highlighted the government’s belief that the 2021 Local Content Act strikes an almost perfect balance between the needs of Guyanese and foreign investors. Speaking at the Georgetown Chamber of Commerce and Industry (GCCI)’s 133rd Annual General Meeting (AGM), he emphasized that the Act does not hinder investments made in Guyana by foreign investors but rather, protects basic services that Guyanese businesses can comfortably engage in.
He also emphasized that the Act is the first of its kind in the region.
It is worth noting that Minister of Natural Resources, Vickram Bharrat, had reassured investors at the International Energy Conference in February last that the Local Content legislation is not a hindrance to investment. He stressed that the Act was brought into being to protect the rights of Guyanese and give them preference for opportunities in the oil and gas sector. Despite criticisms, the government has maintained that the Act is necessary to protect the interests of Guyanese.
During his speech, Indar who is also a past president of the GCCI noted that the sector is very broad, however, the government is keen on developing all areas. He stated that, “You must ensure that the sector has the momentum, momentum is key. So that is the thing. If you leave the sector lagging, you will have a drag on the sector and then you won’t have the kind of inward investment and buoyancy needed.”
Indar further added that this is why the government went out to auction the of the country’s offshore blocks. “And what that will do, based on the persons showing interest in investing, is ensure that the new operators coming on board will have a new ecosystem of tier one contractors from all around the world which will bring more business to Guyana.”
Minister Indar believes this bodes well for Guyana’s economy, adding that it is an exciting time for the oil and gas sector.
