Latest update September 20th, 2026 10:40 AM
Local Content Law demands foreign companies use fair, transparent procurement rules
OIL SERIES PT 2
By Kiana Wilburg
Kaieteur News – In this week’s installment of the Kaieteur News’ Oil Series, the spotlight is placed on what the Local Content Legislation requires of foreign companies with respect to their procurement rules.
To ensure fair and equal treatment in the tendering process, the law states that contracting companies and their subcontractors must ensure the rules governing the bid process are fair and transparent. They must also be clearly articulated in their Request for Proposals or Request for Quotation.
At minimum, the law said foreign entities shall include in their requests:
(a) Contracting strategy;
(b) Bid evaluation criteria which should clearly explain the local content requirements;
(c) The methodology/approach for bid evaluation (knock out or weighting approach) and the stages of application during bid evaluation; and
(d) Mode of communication for submission of bids, issue of bid clarifications, communication of awards, etc.
The legislation also preserves the right of Guyanese companies to bid clarifications. The law states that in all cases, responses to queries/feedback, updates and clarifications shall be communicated to all bidders in a bulletin at the same time.
BACKGROUND
Guyana’s Local Content Act prioritises Guyanese nationals and Guyanese companies in the procurement of goods and services for the enhancement of the value chain of the sector.
The Act also serves to enable local capacity development and provide for the investigation, supervision, co-ordination, monitoring and evaluation of, and participation in, local content in Guyana.
The Local Content Secretariat is mandated to ensure that the provisions of the Act are implemented. It functions as the regulatory arm for the monitoring, evaluation, coordination and reporting of local content in the petroleum operations of Guyana.
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
Website Hits
Blunt of the day
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
