See policy learning video on local content and value additon in the. Download synopsis download full report on local content in mineral, oil and gas sectors download full report on value addition in mineral, oil and gas sectors. The support we have received from the upstream is an example and a. 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 role of local content policies in natural resourcebased development jesse salah ovadia introduction the nowwaning global commodities boom sparked important new discussions on the role of natural resources in promoting economic development. 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. The local government act, 2019 national assembly of zambia. Local content in ghana general outlook local content requirements have been present in many forms. Local content policies in the oil, gas, and mining sector. In press, corrected proof what are corrected proof articles.
The law required that mining companies procured inputs from ghana to the maximum extent possible consistent with the economy, efficiently and safely. 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. The politics of local content implementation in ghana s oil and gas sector. Suspension or cancellation of mining lease or restricted mining lease 70. Local governance act, 2016 act 936 local government. Local governance act, 2016 act 936 arrangement of sections section part one local government districts and district assemblies 1. Pdf on jan 1, 20, john kwadwo oseitutu and others published a study of ghana s oil and gas industry local ghanaian content policy process find, read and cite all. Peninah aheebwa, director technical support services at pau, also noted that for sustainability in local content development, uganda is harnessing linkages between oil and other sectors of the economy such as agriculture, engineering, construction, health, education. An act to provide for an integrated local government system. The board shall implement the provisions of the bill with a view to ensuring a measurable and continuous growth in nigeria content in all and gas arrangements, projects. An overview of the nigerian local content act a presentation given at the africa energy week conference.
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 politics of local content implementation in ghanas. Conceptualizing tvet in most advance economies, industrialization most certainly emanate from tvet kutz, 2001. The petroleum local content and local participation regulations are meant to, among other things, promote the maximisation of valueaddition and jobcreation. Minerals and mining act, 2006 food and agriculture. The eight countries studied are burkina faso, ethiopia, ghana, mozambique, namibia, nigeria, south africa and zambia. The local content committee established by the board of the commission is required to. Local content and participation in ghanas oil and gas. 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. Local content policy for ghanaian construction industry. A minor find was made in 1970 in the saltpond field in eastern ghana and some 3.
2204 4 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. If successful, a policy to increase local content can. Thus, the focus of this paper is to briefly explain the local content act and its implication on tvet and the nigerian economy. Ghana shipping amendment act, 2011, act 826 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. Author links open overlay panel ishmael ayanoore a b. Ghana was the first subsahara country to gain independence 1957. In november 20, li2204 was promulgated to inter alia promote maximisation of valueaddition and job creation through the use of local expertise, goods and services business, financing in the petroleum industry value chain and their retention in ghana. Abstract the petroleum industry in nigeria is the largest industry and mean generator of gross domestic product gdp in the west african nation. Local content and participation in ghana s oil and gas industry.
The world banks sustainable energy department and oil, gas and mining unit are organizing a global conference on local content in the oil, gas, and mining sectors. The passage into law of the nigerian local content bill is one of the significant developments for domesticating the oil and gas industry through local value additions to the local economy. Local content refers to a set of policies that increase the utilisation of national human and. The bill received presidential assent on 22 april 2010 and created a law to provide for the development of indigenous content in the nigerian oil and gas. Comparative study on local content and value addition in. 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 objective of the regulations is to achieve a minimum of fiftyone percent 51% equity participation in wholesale supply and distribution in.
The law is expected to ensure that ghana s natural resources benefit ghanaians, while also allowing foreign oil companies to. Foster measurement and implementation of local content. Background oil exploitation in ghana began as far back as 1896 by the west african oil and fuel company. The nigerian oil and gas industry content development act. Commencement be it enacted by the national assembly of the federal republic of nigeria as follows. As nem singh and bourgouin 20 write, the boom has led many to re. 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. Demarcation of areas of authority of subdistrict structures 3. 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. 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. Resourcerich countries are increasingly inserting requirements for local content local content provisions into their legal framework, through legislation, regulations, contracts, and bidding practices. On 22 nd december, 2017, the energy commission local content and local participation electricity supply industry esi regulations, 2017, l.
Pdf the politics of local content legislation in ghana. A look at local content rules and the case of ghana devex. Local content policy for power sector ghana investment. Nigerian oil and gas industry content development act 2010 no. Local content south africa mining and petroleum ccsi. 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. This reader discusses how governments try to promote local content and some of the challenges they face in fostering lasting benefits.
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. One of the main objectives of this bill on publicprivate partnerships is to encourage and promote local content in ppp projects section 1 objectives. Powers of search and arrest surrender, suspension and cancellations of mineral rights 67. Cabinet approves local content policy for oil and gas. Local content and local participation energy commission. Likewise, just as the ghanaian national ppp policy, the bill includes local content and technology as a guiding principle. Draft ghana petroleum regulatory authority bill, 2008. Inspite of the huge financial investment made by the nigerian government in the oil and gas industry of. Ulii is a member of the global free access to law movement and of the african lii community. 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.
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