Local Content Act

1. Short title.

2. Interpretation. 124 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 PART II GENERAL PROVISIONS

3. Application.

4. Duties of Minister.

5. The Local Content Secretariat.

6. Local Content Registers.

7. Minimum local content levels. PARTIII LOCAL CONTENT PLANS

8. Submission of Local Content Master Plan.

9. Content of Local Content Master Plan.

10. Submission of Annual Local Content Plan.

11. Review of Local Content Plan.

12. Local Content Report.

13. Bid evaluation.

14. Master Services Agreement.

15. Knowledge, skills and technology transfer. PARTIV MONITORING, EVALUATION AND REPORTING

16. Local content monitoring.

17. Performance reports and local content certification.

18. Impact assessment report.

19. Access to facilities by authorised officers. PARTV LOCAL CONTENT ADVISORY COMMITTEE

20. Establishment of Local Content Advisory Committee. THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 125 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 PART VI MISCELLANEOUS

21. Investigations.

22. Obligations for secrecy and confidentiality.

23. Offences and penalties.

24. Offence committed by body corporate.

25. Power to make Regulations.

26. Amendment of monetary penalties. FIRST SCHEDULE - Minimum local content levels. SECOND SCHEDULE - Sub-Plans. 126 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 AN ACT to provide for the implementation of local content obligations on persons engaged in petroleum operations or related activities in the petroleum sector; to prioritise Guyanese nationals and Guyanese companies in the procurement of goods and services for the enhancement of the value chain of the petroleum sector; to enable local capacity development; to provide for the investigation, supervision, co-ordination, monitoring and evaluation of, and participation in, local content in Guyana; to promote competitiveness and encourage the creation of related industries that will sustain the social and economic development of Guyana; and for other related matters. A.D. 202 1 Enacted by the Parliament of Guyana: - PART I PRELIMINARY Short title. 1. This Act may be cited as the Local Content Act 2021 . Interpretation. 2. In this Act- "Committee" means the Local Content Advisory Committee established under section 20; "Contractor" includes any person who enters into a Petroleum Agreement with the Cap. 65 :04 Minister in accordance with section I O of the Petroleum (Exploration and Production) Act; "Guyanese company" means - Cap. 89:01 (a) any company incorporated under the Companies Act - (i) which is beneficially owned by Guyanese nationals who ultimately exercise, individually or jointly, voting rights representing at least fifty-one per cent of the total issued shares of the company; and THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 127 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 (ii) that has Guyanese nationals holding at least seventy-five percent of executive and senior management positions and at least ninety percent of non-managerial and other positions; or (b) any partnership between Guyanese nationals and a company constituted Cap: 89:02 under subclause (a) in accordance with the Partnership Act. "Guyanese national" means a citizen of Guyana; Cap 65 :04 "Licensee" means the holder of a licence granted under the Petroleum (Exploration and Production) Act; "local capacity development" includes increasing the number, competencies, and capabilities of Guyanese nationals or Guyanese companies participating in the petroleum sector; "local content" means the monetary value of inputs from the supply of goods, or the provision of services, by Guyanese nationals or Guyanese companies and includes local capacity development; "Local Content Annual Plan" means the annual local content plan submitted to the Minister for approval in accordance with section 1O; "Local Content Master Plan" means a five-year local content plan submitted to the Minister for approval in accordance with section 9 but does not include a Local Content Annual Plan; "Local Content Plan" means Local Content Master Plan or Local Content Annual Plan; 128 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 "Master Services Agreement" means a contract that facilitates an ongoing relationship between a service provider and a Contractor, Sub-contractor or Licensee by detailing each party's ongoing duties and obligations in relation to their petroleum operations; "Minister" means the Minister with responsibility for petroleum; "petroleum operations" include operations carried out for, or in connection with, the prospecting for, or production of, petroleum; "Secretariat" means the Local Content Secretariat established under section 6; "Sub-Contractor" includes any person with whom a Contractor or Licensee has entered into an agreement for the provision of goods and services within the Contractor's or Licensee's supply chain management as outlined in the guidelines established by the Secretariat; "supply chain management" includes all stages involved in the procurement of goods and services for use in petroleum operations; "total expenditure" means the aggregate of all expenditure for petroleum operations and activities for Guyana. PARTII GENERAL PROVISIONS Application . 3. (I) This Act applies to local content in relation to all operations and activities in the petroleum sector for Guyana. (2) Every Contractor, Sub-Contractor or Licensee shall implement local content as an essential component of their petroleum operations. THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 129 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 Duties of 4. The duties of the Minister shall include - Minister. (a) the approval or refusal, after consultation with the Secretariat, of a Local Content Master Plan and a Local Content Annual Plan, or modifications to an approved Local Content Master Plan or Local Content Annual Plan; (b) prescribing the rules on local content measurement and certification; (c) prescribing the metrics to be applied in determining the achievement of minimum local content levels; (d) establishing and collaborating with multi-stakeholders on local content; (e) the consideration of local content plans prior to approving the grant or transfer of interest in a licence or entering into a petroleum agreement in Cap. 65:04 accordance with the Petroleum (Exploration and Production) Act; (f) after consultation with the Secretariat, set priority areas of focus and minimum targets for local content implementation; and (g) report to the National Assembly on local content implementation. The Local 5. (1) There is established a unit, within the Ministry responsible for petroleum, Content Secretariat. to be known as the Local Content Secretariat. (2) The Secretariat shall consist of a Director and such other members as may be appointed by the Minister from amongst persons who are qualified for appointment to the Secretariat by reason of their integrity, and experience, professional capacity and requisite qualification relating to the work of the Secretariat. (3) The Minister may employ such persons as are necessary for the purpose of carrying out the functions of the Secretariat at a remuneration and on such terms and conditions as the Minister shall determine. (4) The functions of the Secretariat shall include - (a) developing and maintaining measures for the effective implementation of local content by Contractors, Sub-Contractors and Licensees; (b) developing and implementing strategies that will give preference to, or ensure equal treatment of, Guyanese nationals and Guyanese companies; (c) conducting market analysis; (d) making recommendations to the Minister; 130 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 (e) developing formats for local content plans and reporting; (f) developing guidelines including guidelines for local content reporting, procurement, bid evaluation, training, research and development, partnership and joint ventures, and financial and insurance services; (g) developing and maintaining Local Content Registers of qualified Guyanese nationals and Guyanese companies; (h) recommending for approval or refusal, Local Content Master Plans and Local Content Annual Plans and proposals for modifications to Local Content Master Plans and Local Content Annual Plans; (i) developing auditing procedures and conducting regular audits for the purposes of monitoring and ensuring compliance with this Act; G) measuring and reporting on the local content performance of Contractors, Sub-Contractors or Licensees; (k) undertaking public education and awareness campaigns; and (I) reporting to the Minister on the performance of the Secretariat's functions and the general administration of this Act. (5) The Minister may give policy orders and general directions to the Secretariat in relation to the exercise of the functions of the Secretariat. Local Content 6. (1) The Secretariat shall develop and maintain Local Content Registers of - Registers. (a) Guyanese nationals for employment; and (b) Guyanese nationals and Guyanese companies from which goods and services may be procured. (2) A Guyanese national and Guyanese companies may apply for and be issued with a certificate of registration in a manner and form prescribed by the Secretariat: Provided that Guyanese nationals and Guyanese companies supplying goods or providing services to the petroleum sector immediately before the coming into THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 131 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 operation of this Act, shall apply for and be issued with a certificate ofregistration within six months of the coming into operation of this Act. (3) A certificate of registration shall be an annual certificate which shall become renewable on the anniversary date of the issuance of the certificate. (4) An application for the renewal of a certificate of registration shall be made to the Secretariat in a manner and form prescribed by the Secretariat. (5) Upon being issued a certificate of registration under subsection (2), the qualified Guyanese nationals and Guyanese companies shall be added to a Local Content Register. (6) A Guyanese national or a Guyanese company shall immediately notify the Secretariat where there has been a change in the status of citizenship of the national or a change in the composition of the company in contravention of the definition prescribed by section 2. (7) A person who fails to notify the Secretariat in accordance with subsection (6) commits an offence and shall be liable on summary conviction to - (a) a fine of - (i) in the case of an individual, one million dollars; and (ii) in the case of a body corporate, five million dollars; and (b) be struck off the Local Content Register. (8) A Guyanese national or Guyanese company who is not registered on the Local Content Register shall not be measured for the purpose of compliance with the First Schedule. minimum local content levels as set out in the First Schedule. (9) The secretariat shall cause the Local Content Registers to be published on the website of the Ministry responsible for petroleum or any other media of wide circulation. 132 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 Minimum local 7. (1) A Contractor, Sub-contractor or Licensee shall comply with the minimum content levels. local content levels set out in the First Schedule to be implemented in the carrying out of First Schedule. any petroleum operation. (2) The Minister may, by Order subject to negative resolution of the National assembly, amend the minimum local content levels set out in the First Schedule. (3) The Minister may waive the requirement set out in subsection (1) where - (a) the Minister, after consultation with the Secretariat, deems any petroleum operation to be of national interest; (b) a Contractor, Sub-contractor or Licensee is unable to comply with the minimum local content level in the performance of any petroleum operation due to the lack of current Guyanese capacity; or (c) 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 local content levels set out in the First Schedule. PARTIII LOCAL CONTENT PLANS AND REPORT Submission of 8. (I) A Contractor or Licensee shall submit a Local Content Master Plan to the Local Content Master Plan. Minister for approval - (a) within four months of the coming into operation of this Act; or (b) within four months of - (i) the grant of a licence; (ii) the grant of a transfer of interest in a licence; or (iii) entering into a petroleum agreement with the Minister to conduct petroleum operations, THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 133 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 Cap. 65 :04 in accordance with the Petroleum (Exploration and Production) Act. (2) A Sub-Contractor shall submit to the Minister a Local Content Master Plan, within four months of entering an agreement with a Contractor, Sub-Contractor or Licensee for the term of the agreement: Provided that every Sub-Contractor existing immediately before the coming into operation of this Act, shall submit a Local Content Master Plan to the Minister for approval within four months after the coming into operation of this Act. (3) The Minister shall lodge the Local Content Master Plan with the Secretariat. (4) A Contractor, Sub-Contractor or Licensee may submit a modified Local Content Master Plan to the Minister for approval where, after a Local Content Master Plan is approved, a change in circumstances takes place which was unavoidable and unforeseen at the time of submitting the Local Content Master Plan. (5) The Minister, after consultation with the Secretariat, shall review and approve a modified Local Content Master Plan in accordance with section 11. (6) The Secretariat shall develop guidelines for the purposes of subsection (4) which shall specify the circumstances and other related matters for the effective carrying out of that provision. (7) A Local Content Master Plan shall be updated by the Contractor, Sub- Contractor or Licensee every five years. Content of 9. (1) Every Local Content Master Plan shall include- Local Content Master Plan. (a) an Employment Sub-Plan; (b) a Procurement Sub-Plan; (c) a Capacity Development Sub-Plan; 134 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 (d) the quality criteria and quantity criteria required for the supply of goods, and the provision of services; and (e) a statement on, and an estimate of, the value of local content to be acquired, delivered and rendered for Guyana. Second (2) The local content sub-plans required to be submitted in accordance with Schedule. subsection (l)(a), (b) and (c) shall include the information set out in the Second Schedule. Submission of 10. (1) A Contractor, Sub-Contractor or Licensee shall submit a Local Content Annual Local Content Plan. Annual Plan to the Minister for approval: Provided that a Contractor, Sub-Contractor or Licensee existing immediately before the coming into operation of this Act, shall submit a Local Content Annual Plan to the Minister for approval within sixty days after the coming into operation of this Act. (2) Subject to subsection (4), the Contractor, Sub-Contractor or Licensee shall implement the approved Annual Local Content Plan. (3) A Local Content Annual Plan shall include an annual programme with respect to the matters identified in section 9. (4) The provisions of section 8(4), (5) and (6) shall apply mutatis mutandis to a Local Content Annual Plan as they apply to a Local Content Master Plan. (5) A Local Content Annual Plan shall be submitted within sixty days prior to, but no later than thirty days after, the beginning of each calendar year. Review of 11. (I) The Minister and the Secretariat shall review and assess a Local Content Local Content Plan. Plan. THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 135 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 (2) The Minister shall not refuse a Local Content Plan without first notifying a Contractor, Sub-Contractor or Licensee in writing of the intention to refuse the Local Content Plan. (3) The notice of intention to refuse a Local Content Plan shall include- (a) the grounds for the intended refusal; and (b) a specified period within which the Contractor, Sub-Contractor or Licensee may make representation in respect of the grounds stated or propose modifications to the Local Content Plan. (4) Subject to subsection (3), the Secretariat shall inform the Contractor, Sub- Contractor or Licensee in writing of the Minister's decision to approve or refuse a Local Content Plan within forty-five days from the date ofreceipt of the Local Content Plan. (5) The Secretariat shall cause to be published an approved extract of a Local Content Plan on the website of the Ministry responsible for petroleum or on any other media of wide circulation and that publication shall not include any confidential or proprietary information. (6) The Minister and the Secretariat may, at any time, review a Local Content Plan. Local content 12. A Contractor, Sub-Contractor or Licensee shall provide a local content report report. to the Secretariat, withln thlrty days after the end of each half calendar year, outlining its compliance with the approved minimum local content levels. Bid evaluation. 13. (1) A Contractor, Sub-Contractor or Licensee shall incorporate local content as part of the Contractor's, Sub-Contractor's or Licensee's bid evaluation criteria. (2) A Contractor, Sub-Contractor or Licensee shall notify the Secretariat in writing of a proposed contract or a purchase order - 136 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 (a) where any proposed contract or any purchase order is to be sole sourced and relates to petroleum operations; (b) where any proposed contract or any purchase order is to be sourced through a competitive bidding process and is in excess of the value prescribed by the Minister by Order for this purpose. (3) A Contractor, Sub-Contractor or Licensee shall award a contract on the basis of a competitive bidding procurement procedure that has been initiated by a widely circulated public tender process: Provided that the procurement method of sole sourcing shall only be utilised with the approval of the Minister after consultation with the Secretariat. (4) Local content shall be evaluated in accordance with the bid evaluation guidelines developed by the Secretariat. (5) Where two or more bids are adjudged to be equal or, two or more bids are within five percent of each other when financially evaluated but is otherwise adjudged to be equal, the bid containing the highest level of local content shall be selected. (6) A Contractor, Sub-Contractor or Licensee shall conduct half yearly workshops to educate Guyanese nationals and Guyanese companies about the procurement process, qualification criteria, bid evaluation criteria, performance standards and lessons learnt from previous bidding processes. Master 14. A Contractor, Sub-Contractor or Licensee shall submit all Master Services Services Agreement. Agreements executed by the Contractor, Sub-contractor or Licensee to the Secretariat for review within thirty days of the execution of the Master Services Agreement: Provided that all Master Services Agreements executed by a Contractor, Sub-Contractor or Licensee and still in force immediately before the coming into THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 137 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 operation of this Act shall be submitted to the Secretariat for review within thirty days of the coming into operation of this Act. Knowledge, 15. (1) The Secretariat shall develop and implement strategies to promote local skills and technology capacity development to bridge any knowledge and skills gap in the petroleum sector. transfer. (2) Pursuant to subsection (1 ), the Secretariat shall liaise with the academic sector, relevant Ministries, Government Agencies and any other relevant stakeholder in the review and reform of the local training curricula, equipment, and facilities to ensure, as applicable, the purposes of this Act are met. (3) A Contractor, Sub-Contractor or Licensee shall support and facilitate local capacity development in accordance with the strategies identified by the Secretariat. PART IV MONITORING, EVALUATION AND REPORTING Local Content 16. (1) The Secretariat shall monitor and evaluate the petroleum operations of a monitoring. Contractor, Sub-Contractor or Licensee, for the purpose of carrying out the provisions of this Act. (2) Pursuant to subsection (1), the Secretariat may develop the appropriate auditing procedures and establish local content reporting guidelines. (3) A Contractor, Sub-Contractor or Licensee shall maintain, in Guyana, all data on local content in the manner and form as may be prescribed by the Secretariat. (4) The Secretariat may, at any time, review any data on local content kept by a Contractor, Sub-Contractor or Licensee in accordance with this Act. 138 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 Perfonnance 17. (1) A Contractor, Sub-Contractor or Licensee shall, within forty-five days of reports and local content the commencement of a calendar year, submit to the Secretariat, a performance report of certification. local content activities undertaken by the Contractor, Sub-Contractor or Licensee for the previous calendar year. (2) The Secretariat shall prescribe the manner and form of the report in accordance with reporting guidelines developed by the Secretariat. (3) The Secretariat shall, within forty-five days after the receipt of the performance report, review and assess the report to ensure compliance with this Act. (4) Subject to subsection (3), the Secretariat shall issue a certificate of compliance or non-compliance. Impact 18. ( 1) The Secretariat shall prepare and submit to the Minister a report detailing assessment report. and evaluating the local content activities and achievements or the lack thereof of Contractors, Sub-Contractors or Licensees under this Act. (2) The report submitted under subsection (1) shall include - (a) each Contractor's or Licensee' s petroleum operations; (b) each Sub-Contractor's activities in relation to the Contractor' s, Sub- Contractor' s or Licensee' s supply chain management; (c) any objectives that are yet to be attained by the Contractor, Sub- Contractor or Licensee under this Act, and the reasons provided by the Contractor, Sub-Contractor or Licensee for the delay in attaining those objectives; (d) remedial strategies to ensure the implementation of the objectives that are yet to be attained; (e) recommendations of best practices for greater efficiency and effectiveness in the attainment of the purposes of this Act; and THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 139 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 (f) any other information the Minister may require the Secretariat to include in the report. (3) After receiving the report of the Secretariat, the Minister shall cause a report to be submitted to the National Assembly. Access to 19. A Contractor, Sub-Contractor or Licensee shall allow the Secretariat, or a facilities by authorised representative of the Secretariat, unrestricted access to the Contractor' s, Sub- officers. Contractor' s or Licensee' s facilities, records, reports, documents, data and information for the purposes of monitoring, assessing, evaluating, investigating, auditing and verifying compliance with this Act. PARTV LOCAL CONTENT ADVISORY COMMITTEE Establishment 20. (I) There is established a committee to be known as the Local Content of Local Content Advisory Committee. Advisory Committee. (2) The Committee shall consist of not less than seven members appointed by the President. (3) The members appointed to the Committee shall be selected from the following agencies- (a) Office of the President; (b) Ministry of Natural Resources; (c) Ministry of Finance; (d) Ministry of Home Affairs; (e) Ministry of Labour; (f) Guyana National Bureau of Standards; (g) Guyana Revenue Authority; (h) Attorney General's Chambers and Ministry of Legal Affairs; (i) Guyana Office for Investment; G) Ministry of Foreign Affairs and International Cooperation; (k) Ministry of Tourism, Industry and Commerce, 140 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 (l) Ministry of Education; (m) Ministry of Public Works; (n) Private Sector Commission; (o) Labour Union Representative; (p) National Toshaos Council; (q) Guyana Bar Association; (r) Parliamentary Opposition; and (s) Representative from Local Petroleum Organisations. (4) The President shall appoint a Chairperson of the Committee from amongst the members of the Committee. (5) A Vice Chairperson of the Committee shall be elected at the first meeting of the Committee. (6) The members of the Committee shall be appointed for a term of one year which term may be renewed by the President. (7) Five members of the Committee shall constitute a quorum. (8) The function of the Committee is to support the Secretariat in the discharge of its functions in an advisory capacity and to provide the Minister with recommendations. (9) The Committee may determine and document its own procedure for discharging its functions. ( I 0) The President may remove a member of the Committee for - (a) incompetence; (b) misbehaviour or misconduct; (c) inability to perform the functions of the member' s office arising from infirmity of body or mind; (d) being conviction of any offence; (e) bankruptcy or insolvency; and THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 141 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 (f) noncompliance with subsection (10). (11) Any member of the Committee who has any interest, directly or indirectly, in any matter before the Committee - (a) shall disclose the nature of the interest to the Committee; and (b) shall not take part in any deliberation or decisions of the Committee with respect to that matter. (12) A disclosure made under subsection (10) shall be recorded in the minutes of the Committee meeting. PART VI MISCELLANEOUS Investigations. 21 . The Secretariat may initiate an investigation into any petroleum operation of a Contractor, Sub-Contractor or Licensee for the purpose of ensuring compliance with this Act. Obligation for 22. (1) Any information submitted to the Minister or the Secretariat which is not secrecy and confidentiality. required to be published in accordance with this Act shall be regarded and dealt with as secret and confidential. (2) Any statement given, or any information, document or thing provided for the purposes of an investigation or which may be required under law or in any legal proceedings shall not be regarded as being inconsistent with the obligation for secrecy and confidentiality. (3) A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of one million dollars. 142 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 Offences and 23. (1) A person who submits, or causes to be submitted, a local content plan, penalties. report, record, or any other information pursuant to this Act knowing, or ought reasonably to have known, that the submission is false or misleading, commits an offence and is liable on summary conviction - (a) in the case ofan individual, to a fine of five million dollars; (b) in the case of a body corporate, to a fine of ten million dollars. (2) A Guyanese national or Guyanese company who aids or abets anyone to contravene any provision of this Act in order to defeat the local content obligations under this Act commits an offence and is liable on summary conviction - (a) in the case ofan individual, to a fine of five million dollars; (b) in the case of a body corporate, to a fine of ten million dollars. (3)A person who - (a) submits or causes to be submitted, any information for the issuance of a certificate of qualification knowing, or ought reasonably to have known, that the information is false or misleading, commits an offence and is liable on summary conviction to a fine of ten million dollars; (b) carries out petroleum operations without the minimum local content requirement commits an offence and is liable on summary conviction to a fine of fifty million dollars; (c) fails to submit a local content plan, return, report, record, or any other document pursuant to the provisions of this Act commits an offence and is liable on summary conviction to a fine of five million dollars; (d) submits beyond the prescribed time a local content plan, return, report, record, or any other document pursuant to the provisions of this Act commits an offence and is liable on summary conviction to a fine of one million dollars; THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 143 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 (e) fails to satisfy the prescribed content requirement of an approved local content plan commits an offence and is liable on summary conviction to a fine of ten million dollars; (t) fails to submit a performance report, commits an offence and is liable on summary conviction to a fine of one million dollars; (g) fails to comply with a request by the Minister or the Secretariat to review, or provide information on, any return, report, record, or any other document pursuant to the provisions ofthis Act commits an offence and is liable on summary conviction to a fine of one million dollars. Offence 24. Where an offence has been committed by a body corporate and is proved to committed by body have been committed with the consent or the connivance of, or to have been attributable corporate. to any neglect on the part of a director, manager, secretary or any other officer or agent of the body corporate, or any person who was purporting to act in such capacity, that person, as well as the body corporate, shall be guilty of that offence and liable to be same penalty. Power to make 25. The Minister may make regulations for carrying out the purposes ofthis Act. Regulations. Amendment of 26. The Minister may, by Order subject to affirmative resolution of the National monetary penalties. Assembly, amend the monetary penalties specified in this Act. 144 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021

FIRST SCHEDULE Sections 6(8), 7 (I) & (2) MINIMUM LOCAL CONTENT LEVELS A Contractor, Sub-Contractor or Licensee must comply with the following targets for the respective sectors to ensure - a. maximum participation of Guyanese nationals and Guyanese companies supplying goods or providing services in the Guyanese petroleum sector; and b. local capacity development. SPECIFIC SECTORS FOR GUYANESE COMPANIES AND GUYANESE NATIONALS Sectors and Su b-sector fo r Guyanese Businesses End of2022 l. Rental of Office Space 90% 2. Accommodation Services (apartments and houses) 90% 3. Equipment Rental (crane and other heavy-duty machinery) 50% 4. Surveying 75% 5. Pipe Welding - onshore 25% 6. Pipe Sand Blasting and Coating - onshore 30% 7. Construction Work for Buildings - onshore 50% 8. Structural Fabrication (cutting, bending, and assembling of steel 30% products) - onshore 9. Waste Management (disposal, and waste transport services) - Non- 75% hazardous Waste 10. Waste Management (disposal, and waste transport services) - 25% Hazardous waste 11. Storage Services (warehousing) 60% 12. Janitorial and Laundry Services 90% 13. Catering Services 90% 14. Food Supply 75% 15 . Administrative Support and Facilities Management Services 75% THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 145 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 Sectors and Sub-sector for Guyanese Businesses End of2022 16. Immigration Support Services 100% 17. Work Permit, Visa Applications, Visa on Arrival, and In-Water 100% Activity Permit 18. Lay Down Yard Facility 90% 19. Customs Brokerage Services 100% 20. Export Packaging/Crating, Preservation, and Inspection 50% 21 . Pest Control Exterminator Services 95% 22. Cargo Management/Monitoring 75% 23. Ship & Rig Chandlery Services 25% 24. Borehole Testing Services 20% 25. Environmental Services and Studies 25% 26. Transportation Services a. Trucking 75% b. Ground Transportation - movement of personnel 100% 27. Metrology Services 10% 28. Ventilation (private, commercial, industrial) 70% 29. Industrial Cleaning Services - onshore 75% 30. Security Services 95% 31. ICT - network installation, support services 20% 32. Manpower and Crewing Services 50% 33 . Dredging Services 10% 34. Local Insurance Services 100% 35. Local and Accounting Services 90% 36. Local Legal Services 90% 37. Medical Services 25% 38. Aviation Support Services 20% 39. Engineering and Machining 5% 40. Local Marketing and Advertising Services (public relations) 75% 146 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021

SECOND SCHEDULE Section 9(2) SUB-PLANS Employment Sub-Plan (1) An Employment Sub-Plan shall include - (a) a forecast of the hiring needs or training needs of a Contractor, Sub-Contractor or Licensee which includes - (i) a specification of the skills and competencies needed; (ii) the anticipated shortages of skillsets m the Guyanese workforce; (iii) the specific training and competency requirements; (iv) the anticipated expenditure that will be incurred by the Contractor, Sub-Contractor or Licensee in implementing the forecasted Employment Sub- Plan; (v) a timeframe within which the Contractor, Sub- Contractor or Licensee will provide employment to Guyanese nationals for each phase of their petroleum operations; and (b) programmes for - (i) accelerated industrial and technical education and training for Guyanese nationals and Guyanese companies consistent with the performance standards of the Contractor, Sub-Contractor or Licensee; (ii) ensuring that first consideration shall be accorded to Guyanese nationals having the relevant qualification and experience: Provided that where a Guyanese national has THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 147 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 the relevant qualification but does not possess the requisite experience, that Guyanese national shall benefit from necessary training, and work alongside a non-Guyanese national who will serve as a coach or mentor for a period determined by the Minister, after consultation with the Secretariat; (iii) ensuring that equal treatment and opportunity be afforded to all Guyanese nationals, including equal remuneration, irrespective of race, political opinions, colour, creed, age, disability, marital status, sex, gender, language, birth, social class, pregnancy, religion, conscience, belief or culture or geographical location in Guyana; and (iv) enhancing the skills of Guyanese nationals that will allow Contractors, Sub-Contractors or Licensees to meet the minimum local content levels set out in the First Schedule. (2) A Contractor, Sub-Contractor or Licensee shall provide to the Secretariat a half yearly report on - (i) employment and training activities for the reporting period including the percentages of managerial, technical and non-technical staff; (ii) a comparative analysis of the Employment Sub-Plan and the employment and training activities to monitor compliance; and (iii) the number of Guyanese Nationals employed during the reporting period, their job descriptions and salary scales. (3) The Secretariat may require any further information from a Contractor, Sub- Contractor or Licensee which the Secretariat considers necessary for the purpose of carrying out the objectives of this Act. 148 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 Procurement Sub-Plan (1) A Procurement Sub-Plan shall include - (a) a supply chain management strategy which shall - (i) include a forecast of required goods and services; (ii) identify the goods and services to be procured from qualified Guyanese nationals and Guyanese companies; (iii)provide Guyanese nationals or Guyanese companies with timely and appropriate access to- (aa) information; (bb) business opportunities; (cc) joint venture and partnership opportunities; (dd) technology and know-how; (ee) procurement systems and procedures suited to the scale and capacity of the local market; (ff) contract and payment terms that facilitate competitive financing and growth; and (gg) performance management systems and procedures, with feedback and support for improvement; (b) a procurement strategy which - (i) includes local content at each phase of petroleum operations; (ii) ensures a fair opportunity for Guyanese nationals and Guyanese companies to actively participate and gain experience so as to attain requisite standards; (iii)gives first consideration to goods and services, supplied or provided by Guyanese nationals and Guyanese companies; (iv) aligns with any procurement guidelines developed by the Secretariat. (2) A Contractor, Sub-Contractor or Licensee shall provide to the Secretariat a half yearly report on - (a) procurement activities for the reporting period; and THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 149 A.D. 2021] LOCAL CONTENT ACT 2021 [No. 18 (b) a comparative analysis of the Procurement Sub-Plan and the procurement activities to monitor compliance; (c) the number of Guyanese nationals or Guyanese companies which supplied goods and provided services to the Contractor, Sub-Contractor or Licensee during the reporting period. (3) The Secretariat may require any further information from a Contractor, Sub- Contractor or Licensee which the Secretariat considers necessary for the purpose of carrying out the objectives of this Act. Local Capacity Development Sub-Plan (1) A Local Capacity Development Sub-Plan shall include- (a) standards for measuring and comparing suppliers' - (i) capabilities; (ii) qualifications; and (iii)certification of skills, goods, and services; (b) programmes for facilitating the formation of partnerships, joint ventures, or other alliances between qualified Guyanese nationals or Guyanese companies, and non-Guyanese nationals or non-Guyanese companies in the petroleum sector; and (c) local market condition analysis which includes a profile of current and potential supply capacity of Guyanese nationals and Guyanese companies. (2) A Contractor, Sub-Contractor or Licensee shall provide to the Secretariat a half yearly report on - (a) local capacity development activities for the reporting period; and (b) a comparative analysis of the Capacity Development Sub-Plan and the capacity development activities to monitor compliance. (3) The Secretariat may require any further information from a Contractor, Sub-Contractor or Licensee which the Secretariat considers necessary for carrying out the objectives of this Act. 150 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 31ST DECEMBER, 2021 No. 18] LAWS OF GUYANA [A.D. 2021 Passed by the National Assembly on the 29th December, 2021. -~ Clerk of the National Assembly. (BILL No. 21/2021)