If successful, a policy to increase local content can. Local content and local participation legislation a driver. Kasanda north legislator patrick nsamba was on feb. Ghana is one of the few countries to have dedicated regulations dealing with local content in the petroleum industry, and for good reason. Companies are to publish their local content plans, and government is to make them available for inspection. 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 government of ghana is working on a policy as well as a bill that will be passed into law to regulate morticians and funerals in ghana. This research interviewed three key stakeholders from a crosssection of the upstream oil and gas sector, which is directly targeted by the legislation. A similar commitment emerged in ghana following its 2007 oil discoveries. The case of the oil and gas industry in ghana unuwider united. The bill according to nsamba seeks to address issues of job creation through use of local expertise, value addition and also provides for the establishment of the national local content committee responsible for. Local content development in kenyas extractive sector. Definitions of local content adapted from world bank in terms of value addition.
Local content and local participation legislation a. Anthony djokoto, senior legal counsel of tullow ghana, the company said it would continue to be. Expansion of ghanas nascent oil industry has boosted economic growth, but the fall in oil prices since 2015 reduced by half ghanas oil revenue. Pdf the politics of local content legislation in ghana. Assessing the implementation of ghanas local content. The energy commission was set up by an act of parliament, the energy commission act, 1997 act 541 with functions relating to the regulation, management, development and utilisation of energy resources in ghana. Mining and sustainable development forum 2526 sept. Enhancing local content genesis oil and gas services ghana. Mp to introduce local content bill the independent uganda. Ghanaian local content and the importance of publicprivate partnerships.
A minor find was made in 1970 in the saltpond field in eastern ghana and some 3. Pages in category ghanaian law the following pages are in this category, out of total. This is commendable, given nigerias local content law. Aug 29, 2017 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.
Local content policy for power sector ghana investment. Local content policies in mineralsexporting countries. Likewise, just as the ghanaian national ppp policy, the bill includes local content and technology as a guiding principle. 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. Policy of ghana devolves power, functions and responsibility as well as human and financial resources from the central government to the district level. Sierra leone local content policy humanitarianresponse.
Local content south africa mining and petroleum ccsi. The independent march 5, 2017 in the magazine, news leave a comment. On 3rd march 2011, the government of ghana through the ministry, after extensive stakeholder consultations, developed the local content and local participation in. The petroleum local content and local participation regulations are meant to, among other things, promote the maximisation of valueaddition and jobcreation. The stateled enterprise development project is considered a pragmatic step by the state to enhance the capacity of ghanaian businesses and facilitate. The promotion of local content has become a matter of increasing interest and debate in africa and latin america. Governments will often implement local content laws with a noble intent in an effort to create jobs, spur local industry and avoid the resource curse of falling deep into poverty despite an. Its a thumps up for ghanas local content on petroleum. A number of extractive industry companies have introduced supplier development programmes that attempt to reduce. Local content development in kenyas extractive sector turkana county. One of the main objectives of this bill on publicprivate partnerships is to encourage and promote local content in ppp projects section 1 objectives.
Bill of lading document manager lets you manage your bl process with oocl online. Leveraging natural resources to accelerate human development in africa is the work of the afdb and bmgf and grew from a mutual commitment to seeing natural resource revenues used to further human development outcomes in. Regulatory mechanisms available to ensure that local content provisions are implemented are usually specified in local content legislation and regulations outlining local content requirements. Ghanaian local content and the importance of publicprivate. Gold, oil, and cocoa exports, and individual remittances, are major sources of foreign exchange. Recently, an article appeared in ghana business news gbn discussing how the absence of local content legislation in ghana is holding back its citizens and businesses from participating in the oil and gas industry. Commencement be it enacted by the national assembly of the federal republic of nigeria as follows. Local content requirements are often included in legislation or contracts. The objective of the regulations is to achieve a minimum of fiftyone percent 51% equity participation in.
Apr 17, 2017 local content development in kenyas extractive sector turkana county meeting report, 17 april 2017 this meeting report summarises the proceedings and outcome of the fourth extractives sector forum esf, bringing together companies, government, civil society organisations and academia to discuss key concerns and emerging issues in the. Local content policies for extractive industries have attracted increased interest. 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. Tullow oil to promote local content in ghana operations. Ghanas petroleum local content regulations li2204 came into effect in february 2014, after commercial discovery in 2007. A look at local content rules and the case of ghana. The local authorities responsible for making findings regarding the cause of. Ghana is a constitutional republic with two spheres of government. Local government issues, challenges, and strategies series. 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. Local content and local participation policy and legislation have come to stay in ghanas oil and gas industry. Nigerian content development and monitoring board building. Ghanas local content law petroleum local content and local participation regulations 20 sets out the framework for catalysing linkages between the oil and gas sector and the broader economy.
Background oil exploitation in ghana began as far back as 1896 by the west african oil and fuel company. The local content bill, 2018 88 iii application of the mechanism of local content by an operator under this act. Every bill which shall have passed the house of representatives and the senate, shall, before it. All bills for raising revenue shall originate in the house of representatives. To purchase a recorded copy of a program from a previous local government issues, challenges, and strategies series, please visit our registerpurchase page local government regulation of nonferrous mining unearthing your options tuesday, december 11, 2018 10. Local content and local participation in ghanas petroleum. Such efforts may be constrained by low capacity of potential suppliers, low skills, and the general business environment. 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. Resourcerich countries are increasingly inserting requirements for local content local content provisions into their legal framework, through legislation, regulations, contracts, and bidding practices. Mandatory local content policies 19 bibliography 21 annex a country experiences with local content policies 24 a. Here is some general information about you new host country the flag the coat of arms the national anthem maps data on ghana introduction geography climate people education history ghanas presidents government and political conditions economy foreign relations links the flag of ghana.
Enhancing the benefits at the subnational level policy framework prepared for revenue watch institute october 2012 draft. Its a thumps up for ghanas local content on petroleum news. Local content policy document volta river authority. Production at jubilee, ghanas first commercial offshore oilfield, began in middecember 2010. It also establishes major areas of relationship between the local and central government. This is commendable, given nigerias local content law was passed in. 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. Genesis is committed to enhancing local content and developing the capacity of ghanaian individuals and businesses throughout our operations. Unlike in ghanas petroleum sector, there are no regulations dedicated to local content.
A look at local content rules and the case of ghana devex. The law is expected to ensure that ghanas natural resources benefit ghanaians, while also allowing foreign oil companies to. A grotesque internet trend trading death for laughs in a pandemic. Parliament passes new local governance bill modern ghana. 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.
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. Steve manteaw of the integrated social development centre in the gbn article, its up to the oil companies and ghanaian regulators to come together. Local content, supply chains, and shared infrastructure. For example, a ppp project may require a private sector ppp proponent to submit a local content plan to the contracting entity in response. Not for citation or quotation ana maria esteves bruce coyne ana moreno. 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. The country is divided into ten administrative units or regions, each headed by a regional minister appointed. Oocl can upload draft bl in order for you to quickly view the content, request changes, and accept your draft documents, reducing phone and fax costs. Local content and local participation energy commission. The resurgent ambition to achieve national development through oil catalysed strong elite support for increased local. Local content and value addition in ghanas mineral, oil, and gas.
Every bill which shall have passed the house of representatives and the senate, shall, before it become a law, be. The energy commission is the technical regulator of ghanas electricity, natural gas and renewable energy industries,and the. Ghanas recent local content and participation in petroleum activities bill passed in 20 sets a goal of 90 percent local content in the industry in the next decade. While the bill sets medium and longterm goals for various subsectors of the industry, it is still highly ambitious. Understand value chain to take advantage of local content. Sep 04, 2015 the local content act 2010 and the nigeria oil and gas sector, being a paper presented by orebiyi temitope at the csomedia meeting organised by lawyers alert on the 3rd of september 2015 at ajuji hotel abuja. Ghana the world factbook central intelligence agency. The profiles are intended as a tool for policy makers, researchers and citizens seeking to understand and compare how local content is dealt with in other countries, and to provide some examples of language that might be adopted in a framework to achieve local content goals. Nigerian content development bill 2005a bill to make provi. Local government is enshrined in the constitution, as is decentralisation, and the main relevant legislation is the local government act 1993 act 462.
The government of ghana ascribes high importance to the fisheries sector for its contributions to food security, nutrition, livelihoods, poverty reduction, and foreign revenue, and has identified fish as a key commodity in its food and agriculture sector development policy 12. The question this paper seeks to answer is how effective the implementation of the local content legislation in ghanas oil and gas sector in fulfilling intended goals and objectives. We have written extensively on the importance of publicprivate partnerships in the local content development space, and whats happening in ghana truly illustrates this point. Ogm companies can also commit to certain local content requirements under the terms of individual concession or framework agreements. The support we have received from the upstream is an example and a leverage for us. Local content and participation in ghanas oil and gas. Across all our business lines, we seek to maximize the amount of physical work that is done incountry. Tullow ghana on thursday said it remained committed to the promotion of local content in its business, but would continue to place even greater premium on the value of safety for all stakeholders. Ghana s local content law petroleum local content and local participation regulations 20 sets out the framework for catalysing linkages between the oil and gas sector and the broader economy.
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