Local Content Legislation paved way for US$40M business venture – Minister Indar
–450 jobs to be created
A US$40 million company, Pipe Coating Guyana (PCG) Inc., was launched on Wednesday evening at the Marriott Hotel, Kingston.
The company is being led by Guyanese-owned S. Jagmohan Hardware Supplies, in partnership with two foreign companies PSS and WASCO Energy.
Minister within the Ministry of Public Works, Deodat Indar, MP delivering the feature address, said the recent passage of the Local Content Legislation is paving the way for such businesses. The company is one of many that is tapping into the oil and gas industry here in Guyana. It is expected to create some 450 jobs.
Minister Indar explained that with the pipe coating company here in Guyana, it will drastically reduce the cost for such products while at the same time building the technical capacity of Guyanese.
“Guyanese will benefit from this and the technical transfer of how to do pipe coating will transfer overtime and I hope faster than slower.
“Here is it, a prime example of what local content and what the Local Content Legislation is driving in Guyana. It is really delivering prosperity to everybody, but you cannot sit on your hands, it is not the time for that. Guyana as you all know, I do not have to remind you all, we are at a place where we have the largest economic growth projections, 47.5 per cent GDP rise in a single year.”
Minister Indar said Guyana is moving in a direction that will ensure that every Guyanese benefits from the oil and gas sector.
Director of PCG Inc. Narain Tulshi said from the time the Local Content Legislation was conceptualised and passed, the challenge was accepted to take advantage of what the government was presenting to Guyanese.
Tulshi said, “the 450 jobs to be created from this venture will add to the thousands that have already been created by the local partners throughout Guyana. We are committed to proving employment and ensuring that out people benefit from the opportunities in this new petroleum economy.”
Research says that pipeline coating is a cost effective and viable solution to maintain pipelines’ integrity. This coating provides a constant protective lining that helps save pipelines from the damaging effects of corrosion.
The company will be operating out of the compound of Guyana Shore Base Inc. (GYSBI) on the East Bank of Demerara, as a temporary location and will be receiving pipes for coating out of Brazil. Pipe Coating Guyana (PCG) Inc. is expected to have the capacity to coat about 80 pipes per day ranging from 12 to 24 inches.
Also delivering remarks at the launch of the company were International Business Development Director of WASCO Energy, Roberto Gonzalvez, Chairman of the Private Sector Commission, Paul Cheong and Chief Executive Officer of GO-Invest Dr. Peter Ramsaroop.
Foreign Secretary of the Ministry of Foreign Affairs and International Cooperation, Robert Persaud and High Commissioner of India to Guyana Dr. K.J Srinivasa were also present.