Likewise, just as the ghanaian national ppp policy, the bill includes local content and technology as a guiding principle. The evidence suggests that ghanas local content and local participation legislation could be more effective in stimulating the growth of indigenous businesses in the oil and gas industry currently. In line with setting stage to position ugandans to benefit from the massive investments during the oil and gas development phase, cabinet has approved the local content policy for the oil and gas industry. Nigerian oil and gas industry content development act, 2010. Sep 04, 2015 this is commendable in view of the previous limited attempts by government at developing a local content frame work for the industry. Presentation by phillip karugaba, head of corporate advisory at mmaks advocates, in kampala uganda. View local content in oil and gas industry research papers on academia. Background oil exploitation in ghana began as far back as 1896 by the west african oil and fuel company. Local content and local participation legislation a. A nigeria content development and monitoring board the board has been established and vested with the responsibility to implement the provisions of the act, make procedural guidelines and monitor compliance by operators within the oil industry. Maximize participation of nigerians in oil and gas activities.
Applications for rights companies must submit bids that include the proposed level of local content in compliance with the 20 petroleum local content regulations and any other laws and regulations regulations 2018 art. Integrate oil producing communities into the oil and gas value chain. Republic of ghana in africa, ghana ranks 24th by size out of 54 countries, 14th by population and th by population density. Pdf a conceptual model for local content development in. A minor find was made in 1970 in the saltpond field in eastern ghana and some 3. Adobe acrobat reader dc software is the free global standard for reliably viewing, printing, and commenting on pdf documents. Local content in ghana general outlook local content requirements have been present in many forms. Local content and local participation in ghana s petroleum industry. Cabinet approves local content policy for oil and gas. Increasingly, mining companies are developing policies aimed at complying with local content regulations. Average local content offered for various bidding rounds.
Link oil and gas sector to other sectors of the economy. It is hoped that this gap will be closed in the future. The report also identifies successful governance mechanisms for efficient. The local content bill, 2018 7 local goods means materials or equipment mined, produced or manufactured in kenya and for this purpose, a good shall be considered to be manufactured, processed or assembled if it differs substantially in its basic characteristic, purpose or utility or in the case of a. Fillable utility bill template esign pdf with electronic. After discovering oil in commercial quantities, ghana was quick to develop a local content policy in 2010 which was backed with a law in 20. Such efforts may be constrained by low capacity of potential suppliers, low skills, and the general business environment. Local content policy for power sector ghana investment. At present, regulations will not be promulgated, but may become necessary as the industry unfolds and expands, and impetus is needed to steer the process or to solidify gains. The chairman of the agi construction sector, mr rockson dogbegah is interviewed about moves to develop a local content policy for the construction industry in ghana. Vra as a strategic industry has positioned itself to develop a local content policy for its operations. Nigeria has also applied local content policy in other sectors. This research interviewed three key stakeholders from a crosssection of the upstream oil and gas sector, which is directly targeted by the legislation.
Background the governments development objectives are focused on supporting the private sector in sierra leone which is considered to be the engine of growth for the overall economic development of the country. Highlights the local content framework is set out briefly in the mining legislation, with more detail provided in the general mining regulations. Ulii is a member of the global free access to law movement and of the african lii community. Supporting local employment and a competitive and sustainable local industry goes well beyond the remit of the corporate social responsibility agenda, requiring industrywide collaboration and multistakeholders involvement. The ghana local content and local participation bill 20 is a bill passed in november 20 by the ghanaian government that stipulates that ghanaians should be prioritised in terms of employment in the petroleum industry, and should benefit from the countrys resources. Ppp bill draft, 20 in planning, working on, implementing or doing anything connected with ppps, or performing any ppp related tasks, all persons in both the public and private sector shall be guided by the following principles. Local content level of intermediate purchases 9 figure 3.
This session will focus on issues related to the design and monitoring of implementation of local content policies. Local governance act, 2016local governance act, 2016 act 936 51. Full text of challenges facing nigerian local content in. Across all our business lines, we seek to maximize the amount of physical work that is done incountry. Though ghana is a relative novice in oil production it has local content laws that some oil industry experts deem unrealistic, in part because ghana s oil industry is still quite young and the. Ghana national petroleum corporation law 1983 download here jv guidelines download here local content and local participation regulations l. Local content in the upstream petroleum industry in ghana.
The ministry of energy is the sector ministry with responsibility for policy formulation, implementation, monitoring and evaluation. The ghana shipping act, 2003 act 645 imposes restrictions on the trading of foreign registered ships in ghanaian waters by preserving local trade in ghanaian. Petroleum local content and local participation regulations, 20 in exercise of the power conferred on the minister responsible for energy by section 22 of the petroleum commission act, 2011 act 821, these regulations are made this 5th day of july, 20. The 2012 local content regulation li 2173 revised in 2015 in ghana. Enhancing local content genesis oil and gas services ghana. Companies are to publish their local content plans, and government is to make them available for inspection. Genesis is committed to enhancing local content and developing the capacity of ghanaian individuals and businesses throughout our operations. And now, its connected to the adobe document cloud. The board shall implement the provisions of this act with a view to ensuring a measurable and continuous growth of nigerian content in all oil and gas arrangements, projects, operations, activities or. Ghana publicprivate partnership bill public private.
Pdf on jan 1, 2018, ishmael ayanoore and others published the politics of local content legislation in ghana find, read. Ghana local government act 1993 a comparative analysis in the. According to him, the move is to ensure that ghanaians and indigenous businesses participated in power generation, construction works and allied services to. Local content and local participation in ghanas petroleum. Energy laws and regulations ghana laws and regulations gli. Classification of local content policies by channel of intervention and transversality 60 figure 4. Ghanas recent local content and participation in petroleum activities bill passed in 20 sets a goal of 90% local content in the industry in the next decade.
Nigeria is the worlds eight biggest oil exporter and relies on crude as its main foreign exchange earner. Human resource local content in ghana s upstream petroleum industry. Fill out, securely sign, print or email your ghana electricity bill template form instantly with signnow. A stake of no less that 5% and no more than 20% of the implementing company shall be reserved for. Yet, local content polices entail some distortionary effects in favour of local actors, which may be considered as too discriminatory if done in an unbridled manner. Local content requirements the goi is pursuing local content requirements in specific areas, including ict, electronics, and solar energy, to spur an increase in the manufacturing sectors contribution to indias gross domestic product gdp. A push toward local content strives to ensure that a company is hiring local labor and procuring local goods and services from the host country. The ghana local content and local participation bill 20 is a bill passed in november 20 by the ghanaian government that stipulates that ghanaians. May 29, 2014 on 3rd march 2011, the government of ghana through the ministry, after extensive stakeholder consultations, developed the local content and local participation in petroleum activities policy. For news about ghana, see accraexpats how to guide page how to keep posted with ghana news official name. In the mining sector, ghana, long africas second largest producer of gold, operated on a scale sufficient to increase the development of the local supply chain.
Government along with other stakeholders including the. So far, the contractors, who are mainly foreign companies, have not paid a single pesewa into the local content fund, which was established by ghanas petroleum exploration and production act, 2016, act 919,to provide an enabling environment for local and indigenous smes to competitively compete with their foreign counterparts in the countrys nascent oil and gas sector. News ghana is ghana s leading online news portal for business in west africa and around the world. The nigerian oil and gas industry content development act the act is designed to enhance the level of participation of nigerians and nigerian companies in the countrys oil and gas industry. Parliament has, amid stiff opposition from foreign upstream oil and gas companies and their governments, endorsed the petroleum local content and local participation regulations, 20 l. A critical and comparative analysis july 11, 20 acmeug legislation and law reform, oil and gas, policy and legislation 0 presentation by phillip karugaba, head of corporate advisory at mmaks advocates, in kampala uganda. Its the only pdf viewer that can open and interact with all types of pdf content, including. But private sector led initiatives need to be grounded in the overall local content strategy of the government. Local content policies in the oil, gas, and mining sector.
Though ghana is a relative novice in oil production it has local content laws that some oil industry experts deem unrealistic, in part because ghanas oil industry is still quite young and the. The resurgence in local content reforms in most oilrich africa countries is broadly. This report an outcome of an expert group meeting held on the challenge of local government financing in developing countries documents both the challenges and solutions related to the ability of local governments to mobilize revenues from local resources. However, tullow oil has also taken the effective initiative to create several local contents within the regions of ghana. Local content policies design and implementation issues.
This reader discusses how governments try to promote local content and some of the challenges they face in fostering lasting benefits. Parliament has, amid stiff opposition from foreign upstream oil and gas companies and their governments, endorsed the petroleum local content and local participation regulations, 20. Local content, supply chains, and shared infrastructure. This explains the fanfare associated with the enactment into law of the nigerian local content bill. Pdf on jan 1, 20, john kwadwo oseitutu and others published a study of ghanas oil and gas industry local ghanaian content policy process find, read and cite all the research you need. The evidence suggests that ghana s local content and local participation legislation could be more effective in stimulating the growth of indigenous businesses in the oil and gas industry currently. Sierra leone local content policy humanitarianresponse. Gates bill gates, 1996 has been discussed and vetted among marketers for years and we all agree, that content is very important. Local content in the oil, gas and mining sectors natural resource. Pdf what is the local community content in ghanas oil. Thus, the focus of this paper is to briefly explain the local content act and its implication on tvet and the nigerian economy. An indigenous ghanaian company will be given preference in the award of rights art. Local content policies in mineralsexporting countries. How important is local content to your marketing strategy.
A look at local content rules and the case of ghana devex. A critical and comparative analysis free download as powerpoint presentation. Engie africa has announced the successful acceleration of the access to energy a2e strategy that it launched in 2018, thereby establishing its position as market leader on the continent. The government will extend the local content policy to the power subsector to encourage more local participation, the minister of energy and petroleum, mr armah kofibuah, has disclosed. The board shall implement the provisions of the bill with a view to ensuring a measurable and continuous growth in nigeria content. In nigeria, local content also represents an attempt to move beyond the indigenisation policies of the 1970s. Revenue administration bill, 2016 authorisation and protection of tax officers 2. Bsc, kwame nkrumah university of science and technology, ghana, 2002. Local content and value addition in ghanas mineral, oil, and gas. A survey of the literature on local content policies in the oil and gas industry in east africa chilenye nwapi summary although oil and gas exploration has been going on in east africa for decades, until recently exploration activities grew more slowly compared to.
The amendment was intended to inject local content into the oil and gas development by encouraging ghanaians to participate in the shipping activities relating to offshore business. Foster measurement and implementation of local content. Part one districts and district assemblies establishment 1. Pdf on jan 1, 2018, ishmael ayanoore and others published the politics of local content legislation in ghana find, read and cite all the research you need on researchgate. Local content policies for extractive industries have attracted increased interest. According to willy olsen 2008, local content is a means not a goal the purpose is to increase national wealth through economic growth and more employment of locals. The question this paper seeks to answer is how effective the implementation of the local content legislation in ghana s oil and gas sector in fulfilling intended goals and objectives.
If a countrys local content strategy is focused on the promotion of local procurement, for example, national and local service companies must have high levels of technology and the countrys. The most secure digital platform to get legally binding, electronically signed documents in just a few seconds. Minerals and mining laws since 1986, pndcl 153 minerals and mining act 703 2006 trade and investment laws since 1992, li 1547 local content requirements contained in key legislative documents. The role of different actors in maximising the benefits from local content to resourceaffected. International trade and investment rules have, over time, disciplined the use of industrial policies, including local content. Local content meaning in the cambridge english dictionary. Well endowed with natural resources, ghana has roughly twice the per capita output of the poorest. Local content in oil and gas industry research papers. Local content requirements are often included in legislation or contracts.
Local content and local participation legislation a driver. The country of ghana is located in west africa, attracting foreign direct investment continues to be a priority for the government of ghana gog, given the urgent need to restore the countrys economic momentum and overcome an annual infrastructure funding gap of at least usd 1. Ghana to develop a local content policylegislation is overdue, and it is crucial and relevant at this point in time of the nations development when the country appears to import almost everything. Prospering local content of ghana can be included within the socio and economic impact of tullow oil plc within the region of ghana. Oil and gas news in africa local content development.
Local government act, 1993 act 462 act 462 local government act, 19931 an act to establish and regulate the local government system in accordance with the constitution and to provide for related matters. To this end, a major mining company, anglo gold ashanti, has expressed an intention to increase recruitment from its local area of operations, obuasi, on the resumption of fullscale operations at its obuasi mine. Pdf the politics of local content legislation in ghana. Local content refers to the local procurement and capacity building within the society. The law is expected to ensure that ghana s natural resources benefit ghanaians, while also allowing foreign oil companies to. Draft bill building on the ppp policy 2011 one of the main objectives of this bill on publicprivate partnerships is to encourage and promote local content in ppp projects section 1 objectives. Assessing the implementation of ghanas local content. Start a free trial now to save yourself time and money. Unlike in ghanas petroleum sector, there are no regulations dedicated to local content. Nigerian content monitoring board the act establishes the nigerian content monitoring board the bdboard whi hhich is theregultlatory agency vestdted with the responsibility of regulating local content. The local content policy lcp will be developed over time and in tandem with the growth of the industry. A number of extractive industry companies have introduced supplier development programmes that attempt to reduce.