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. 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. Unlike in ghanas petroleum sector, there are no regulations dedicated to local content. Setting minimum nigerian content level for project or project items which were not included in the schedule a to the act the boaoa drd aasolso has popo e swers to.
Only the petroleum regulations, li2204 clearly defines local content in general, local content requirements in ghana cover. Furthermore, whilst local content seems to be a recent fad, the policy has reflected in ghana s mining legislation, since the minerals and mining law pndc law 153 of 1986. The national content policy therefore seeks to enhance the opportunities, address challenges and constraints, describe the necessary institutional framework to coordinate the development, implementation and monitoring of national content, and provide the necessary monitoring and evaluation framework. Several laws regulate oil and gas activities in ghana, including those aimed at. Local government is enshrined in the constitution, as is decentralisation, and the main relevant legislation is the local government act 1993 act 462. In july this year, government had indicated that it would submit a formal application to join the global transparency initiative during the international eiti board. Every mineral in its natural state in, under or upon land in ghana, rivers, streams. Applicants are encouraged to seek out firms that have an attorney on staff with experience in ghanaian law. Customs act, 2015 act 891 customs amendment act, 2015 act 905 customs amendment act, 2016 act. The support we have received from the upstream is an example and a leverage for us. On july 5, 20, the gog enacted into law ghana s petroleum local content and local participation regulations, 20, also known as l.
The decree law on human resources development is the most comprehensive. To allow all people in ghana to understand the legislative process and find ways of influencing this, the friedrichebertstiftung cooperated with the human rights advocacy centre to simplify the process in this book lawmaking process in ghana. For offshore deep water discoveries as is the case in ghana so far, floating production storage and offloading fpso. The targets for lc policy in increasing local content development were set progressively. Services and equipment to the netherlands lonely planet pdf local oil and gas industry by 2010. March 2010, signed into law the nigerian local content act which aimed at promoting industrialization of the nations oil and gas industries and thereby improving the economic and social well being of citizens as engaged in the industries. Vra as a strategic industry has positioned itself to develop a local content policy for its operations. Pdf localcontent legislation and policies in oil and gas producing. Participation of a tanzanian citizen in petroleum activity.
Local content and participation in ghana s oil and gas industry. The percentages of locally produced materials, personnel, financing, and goods and services rendered within ghana s upstream petroleum industry value. Likewise, just as the ghanaian national ppp policy, the bill includes local content and technology as a guiding principle. Local content policy for power sector ghana investment. On 22 nd december, 2017, the energy commission local content and local participation electricity supply industry esi regulations, 2017, l. This article focuses on the upstream sector and ghana s local content law. 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.
Policy of ghana devolves power, functions and responsibility as well as human and financial resources from the central government to the district level. Section 391 section 93 of the companies code all pages. A guidance document for the oil and gas industry london. Highlights the local content framework is set out briefly in the mining legislation, with more detail provided in the general mining regulations. May 29, 2014 local content and local participation in ghanas petroleum industry. Local government act, 1993 section delegation of66. How important is local content to your marketing strategy. Ownership of minerals and cadastral system minerals property of republic 1. The ghana local content and local participation bill 20 is a bill passed in november 20 by the ghanaian government that stipulates that ghanaians.
Pdf local content implementation enhancement through. Pdf local content and participation in ghanas oil and. This guidance covers five broad types of local content policies, each aimed at different but related objectives. A look at local content rules and the case of ghana devex. Once a pyxera global local content development initiative is in place, local businesses are better able to comply with complex contracting requirements and stringent environmental health and safety standards, to meet the procurement demands of contractors and the extraction site owner, and to drive economic growth across the entire community. This report seeks to illuminate the use of local content requirements lcrs. Local content in the upstream petroleum industry in ghanathe. Building industrial capacity through equity participation local procurement of goods and services employment and training. Development and impementation of policy for local content in ghana presented by. Summary ghana is a constitutional republic with two spheres of government. Local content and procurement requirements in oil and gas.
Government of ghana ministry of local government and rural. Pdf local content and participation in ghanas oil and gas. 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. Cabinet approves local content policy for oil and gas. Isabelle ramdoo december 2016 key messages local content policies are critical to ensure that the maximum of benefits from production activities accrue to local economic actors. Today it is a unique blend of think tank, research. She indicated that the commission would undertake the registration of service providers and also iocs. There is no legal definition of what local content or the angolanisation policy is. One of the main objectives of this bill on publicprivate partnerships is to encourage and promote local content in ppp projects section 1 objectives.
The 1st level of the system comprises 10 administrative. Petroleum revenue management act, 2011 act 815 petroleum revenue management amendment act 2015, act 893 petroleum local content and local participation regulations, 20 l. While it is not required for an applicant not normally present and residing in ghana to be represented by local counsel, applicants may find it helpful to hire a local practitioner. The first two stepsclarifying objectives and taking stockshould help make it clear whether local content policies are the most appropriate instrument and which type of. Local content levels and requirements for contracts minimum local content levels 10. Local content strategies in the oil and gas sector clingendael. Local content policies in mineralsexporting countries oecd. Friday, 22nd november 2019 economy, law, local content government of uganda has postponed its formal application to join the extractive industry transparency initiative eiti. Local content regulation as a differentiator for inward investment in africa. Mr kwadwo asare kyei, manager of local content, pc, said proposals made towards the making of the new li bothered on the joint venture formation and some other interpretations of the law. They are total formerly totalfinaelf after a merger of total fina and elf aquitaine. An assessment of local content policies in oil and gas producing countries article pdf available.
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. Ghana s local content regulations seek to achieve direct employment for ghanaians, technology. 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. Giving a speech at a conference on local content in ghana in 20, the norwegian. The law required that mining companies procured inputs from ghana to the maximum extent possible consistent with the economy, efficiently and safely. The minister said the petroleum sectors local content policy was so far going well and receiving support from oilproducing partners and should, therefore, be extended to the power sector because it constitutes a large chunk of the energy sector.
The policy is designed to build the capacity of indigenous firms and to provide more opportunities for participation in business. The local content policy action started in 1971 through the establishment of. Yardsticks and best practice, snf working paper no. Determine if nigerian indigenous contractors have the capacity to perform services listed in the schedule of services issuing regulations for the industry regarding local content. Local content in the upstream petroleum industry in ghana the law and practice this article highlights the key features of the local content law applicable in the upstream petroleum industry in ghana as well as the practical and conceptual challenges arising from its implementation. The case of sierra leone summary 3 pages a changed context for local content with the current downturn in the global markets for oil, gas and minerals, and slower global growth more generally, the role of local content regulation needs to be rethought. Key local content requirements in the south african legal frameworks. Pdf the politics of local content legislation in ghana. After joining opec in 1971, nigeria took a 35% stake in the oil companies operating.
Local content regulations are spread across various laws and decrees passed between 2003 and 2009. Ghanas petroleum local content and local participation regulation of. The local government in ghana has a long history, which predates colonialism. Nigeria, india, zimbabwe, south africa and ghana in the institution of local content policies for five main sectors of their economies namely oil and gas, mining, coastal and. Mergers and acquisitions in ghana foreign investor. Local content, a promising strategy facing strong implementation hurdles. As a second step, the local content requirements were enacted into law. Noc became nigerian national petroleum corporation nnpc in 1977. The content of the received law in ghana the content of the received law in ghana was made up of the common law, the doctrines of equity, and the statutes of general application in force in england as of the cutoff date. Government along with other stakeholders including the. License, permit etc if nigerian local content law is not. Local content has a role in turning commodity extraction into a driver of growth in manufacturing and services. Act 663, company, ghana, goods, public procurement act 2003. Pdf on jan 1, 20, john kwadwo oseitutu published a study of ghana s oil and gas industry local ghanaian content policy process find.
Dec 15, 2016 local content and local participation in ghanas petroleum industry. Local content and local participation energy commission. 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. Ghana s local content law would make it difficult for the country to. Already, there is some evidence of the growth of industry and entrepreneurship in both angola and nigeria and use of regimes of incentives to encourage local capitalists. Local content in oil and gas industry research papers.
Petroleum local content and local participation regulations, 20, li. Speaking on how cheap imports, lax regulations and trade malpractices were undermining the growth of local industries, mr otenggyasi said the disregard for the local content regulation was rampant in the mining sector, where the firms were largely allowed to import their. 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. Stitution which is the basic law of the land guarantees an. Local content ng is designed to aid you better understand and utilize your untapped benefits from local content development in nigeria. Ghanas five largest cities accra, kumasi, sekonditakoradi, tamale and tema account for about 19% of the total population and their residents generate an estimated 3,200 tonnes of solid waste per day. Local content and local participation legislation a driver. Best practice for local content development strategy.
Local content policies in mineralsexporting countries. This is a fourtier metropolitan and threetier municipal district assemblies structure designed in line with the decentralization policy. Ogm companies can also commit to certain local content requirements under the terms of individual concession or framework agreements. 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. Procuring ppps is allowed under the national policy on public private partnerships in ghana adopted in june 2011 the ppp policy. Armenia also ranks among the most improved countries in the 2012 rankings, by merging the. Is there policy space left for linkages development in resourcerich countries. This book also has a pictorial representation on an a2 poster.
In general, local content requirements in ghana cover. 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. Local content and local participation in ghanas petroleum. Programmes offered and admission requirements 1012 5. That countries with local content requirements have larger gdp on average and depend. Gates bill gates, 1996 has been discussed and vetted among marketers for years and we all agree, that content is very important. The ppp policy sets out some guidelines for the interim regulation of ppps pending the enactment of ghana public. Apart from the 1992 constitution, several pieces of legislation govern the oil and gas sector in ghana. The objective of the regulations is to achieve a minimum of fiftyone percent 51% equity participation in wholesale supply and distribution in. Companies are to publish their local content plans, and government is to make them available for inspection. Furthermore she indicated that the current petroleum agreements signed with the various international oil companies iocs have provisions to promote local content and local participation. The 2012 local content regulation li 2173 revised in 2015 in ghana. Enhancing the subnational benefits of the oil, gas and mining sectors some jurisdictions differentiate between local content and local participation. Local content in the upstream petroleum industry in ghana.
The nigerian oil and gas development law 2010 defines local content as the. Sierra leone local content policy humanitarianresponse. View local content in oil and gas industry research papers on academia. It also establishes major areas of relationship between the local and central government. Provisions within local content laws or policies that apply to foreign investors. Regulatory mechanisms available to ensure that local content provisions are implemented are usually specified in local content legislation and regulations outlining local content requirements. Communication of local content procedures and obligations. Ghana school of law students facilities and societies 67 3. Company law article index company law commencement of business.
An act to revise and consolidate the law relating to minerals and mining and to provide for connected purposes. Pdf an assessment of localcontent policies in oil and gas. Every nigerian citizen young or old possesses a unique potential, this can only be better used depending on the awareness of opportunities. An enterprise development centre edc was established to enhance the capacity of indigenous ghanaian firms and promote their participation in the oil and gas industry. Local content and participation in ghanas oil and gas. Mining firms undermining local content rules otenggyasi. The role of local content policy in local value creation. A serious attempt was, however, made in 2010 with the promulgation of the nigerian oil and gas development.
The new local government system in ghana began in 1988 with a redemarcation exercise. Nigeria, ghana, brazil and norway are chosen as case study. In 20, a local content law was passed with the purpose of promoting internal and external linkages between ghana s oil and gas sector and the broader economy. In 20, ghanas petroleum local content and local in subsaharan africa, the. Local content and local participation legislation ghana news.
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