Amid concerns that some oil and gas companies were taking as long as 90 days to pay local suppliers of good and services, the government has ordered that this period be contracted to within 45 days.
A statement yesterday from the Local Content Secretariat (LCS) said that the Government and the private sector were examining a thirty-day payment period for Guyanese and Guyanese businesses which supply goods and services to the 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. The updated five-year plan must now include a payment period of between 30-45 days upon the correct receipt of an invoice.
“This will 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 LCS statement said.
The LCS said that suppliers must know that the onus is now on them to submit correct invoices. To ensure that this is achieved, the Secretariat says it continues to encourage contractors and sub-contractors to conduct continuous training and suppliers’ engagement forums. These forums, it said, 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 payments are asked to contact the Local Content Secretariat or utilize the Grievance Redress Form via this link: https://petroleum.gov.gy/grievance-redress.
