Attachment 12-National Content Plan

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BYZANTIUM UGANDA LIMITED

NATIONAL CONTENT PLAN


1. INTRODUCTION
The Petroleum (Local Content) Regulations, 2017 The Petroleum Act (CAP. 392)
define Local Content as: The quantum of composite value added to, or created in,
the economy of Uganda through deliberate utilization of Ugandan human and
material resources and services in the petroleum operations in order to stimulate
the development of capabilities indigenous of Uganda and to encourage local
investment and participation. Local Content therefore relates to sustainable value
addition to Uganda. National content therefore refers to the share of labor,
services and goods for the petroleum sector being provided from within the
country and constitutes the added value to Uganda from these activities.

In an effort to ensure maximum benefit of the oil and gas resources to both
current and future generations, the Government as caretaker of petroleum and
minerals on behalf of the people of Uganda, is committed to ensure that
exploitation of these resources is done in a manner that creates lasting value to
the society. This responsibility is exercised based on Article 244 of the
Constitution of the Republic of Uganda.

To this end, the 2008 National Oil and Gas Plan for Uganda states as its primary
goal to use the country’s oil and gas resources to contribute to early achievement
of poverty eradication.
The Plan recognizes that the benefits the country will achieve depend on the active
direct and indirect participation of its citizens (individuals and enterprises) in the
petroleum sector and auxiliary services. The National Oil and Gas Plan provides
the basis for the Petroleum (Exploration, Development and Production) and the
Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act 2013
which mandate oil and gas operators to conduct training, employ and transfer
technology to the country; imposes a preference for Ugandan manufactured goods
and services; and requires that goods and services not available in Uganda should
be supplied by international companies in a joint venture with Ugandan
companies.

The Government of Uganda is committed to facilitating the development of a


significant national participation in its petroleum sector for the benefit of the
Ugandan economy, the petroleum sector itself and the society at large and this is
an ambition that Uganda shares with many other oil and gas producing nations.

In line with this brief introductory background, Byzantium Uganda Limited aims
at maximizing National Content through: the employment and training of
Ugandans; the provision of goods and services by Local companies and Ugandan
citizens; provision of management services; the transfer of knowledge and
technology to Local companies and Ugandan citizens; the provision of support to
Local companies and Ugandan citizens; the investment and the promotion of
cooperation in education, training, research and enterprise development aiming at
enhancing the performance/capacity of Local companies and Ugandan citizens in
petroleum activities so as to encourage local investment and participation without
compromising International quality standards on Health Safety and Environment
(HSE).

2. NATIONAL CONTENT DEFINITIONS


A. “Upstream National Content Regulations” shall mean The Petroleum
(Exploration, Development and Production) (National Content) Regulations,
2016.
B. National Content shall mean:
(a) the level of use of Ugandan local expertise, goods and services, Ugandan
companies,
Ugandan citizens, registered entities, businesses, and financing in petroleum
activities; and
(b) the substantial combined value added or created in the Ugandan
economy through the utilization of Ugandan human and material resources
for the provision of goods and services to the petroleum industry in Uganda.
C. “Registered entity” shall mean a business owned by Ugandan citizens
registered under the Business Names Registration Act or the Partnership
Act, 2010.
D. “Ugandan company” shall mean a company incorporated under the
Companies Act, 2012 and which:
(a) provides value addition to Uganda;
(b) uses available local raw materials;
(c) employs at least 70% Ugandans; and
(d) is approved by the Authority under regulation 9(4) of the upstream
national content regulations.
E. "Approved Joint Venture" means a joint venture with a Ugandan Company
that has a participating interest of at least 48%, has been approved by the
Authority (PAU) and is taking an active participation in the joint venture.
F. “Management Staff” means Supervisory, professional, senior management
staff with a diploma/degree, qualified and/possessing the relevant number
of years of experience.
G. “Technical staff” means Skilled and semi-skilled staff certified under a
technical training scheme and with verified competency including
petroleum, chemical, electrical and instrumentation, process engineers and
technicians, geoscientists, chemists, personnel trained and qualified in
Health, Safety and Environment (HSE) and Technical Standards, petroleum
economists, cost engineers, etc. Other staff technically
uncertified/inexperienced or unskilled staff.
H. “Management Services” means supervision, inspection, quality control,
consultation, accounting, regulating, in-service training and other related
services provided on a systematic basis to support and improve the
operation of companies. As a Management Services Specialists, we help
organizations to be more efficient and productive.
I. “Technology transfer” means all activities and mechanisms aimed at
optimizing knowledge and skills transfer to the Government, Ugandan
citizens and Local Companies, including, but not limited to: encouraging
and facilitating the formation of joint ventures and partnerships; the
development of technology licensing agreements between Local Companies,
Ugandan citizens and foreign Contractors and service or supplier
companies; the establishment in Uganda of management and technical
capabilities such as, but not limited to: local supplier development
programs aimed at building capacity at national and community level;
internships and attachment of Ugandan citizens in petroleum activities;
support to the Industry Enhancement Center including health, safety,
environment and quality standards; support of existing institutions in
Uganda by providing knowledge and technology; mentorships; scholarships;
the establishment or upgrading of any necessary facilities for technical,
vocational or commercial work and technology transfer; support to local
education institutions; research and development in Uganda.
J. “Research and Development (R&D) or Research and Technological
Development (RTD)” – The systematic and investigative activities a
business conducts to improve existing products and procedures or to lead
to the development of new products and procedures.
K. “Country” – Means Uganda, the host country in which Byzantium Uganda
Limited Operates and in which the project will be implemented.
3. BYZANTIUM’S NATIONAL CONTENT COMMITMENTS
Byzantium Uganda Limited hereby commits to the development of local skills, goods
and services as set out herein and further undertakes to ensure that its sub-
contractors and members of the Byzantium Uganda Limited GROUP make a similar
commitment to National/Local content by: -

 Following the Labor Management Plan (LMP) that defines the approach to
ensure recruitment practices and working conditions comply with National
Content Policy for the Petroleum Subsector in Uganda, 2017 requirements and
project standards.
 Complying with National labour laws and regulations, and international labour
standards concerning transparency, accountability, anticorruption and human
rights; Recognizing workers’ right to trade union representations; provision of
suitable working conditions, including rest facilities and breaks; Provision of a
mechanism for compliance with the International Labour Organization
Maternity Protection Convention (2000); and Respecting workers’ rights to
privacy including data protection requirements.
 Adhering to recruitment policies and processes, including guidance for local
recruitment provision for national content, development of local enterprise and
capacity development; Labor contracts, including workers’ rights, workers’
conduct, camp rules and workers’ grievance procedure; Disciplinary
procedures; retrenchment plans to manage retrenchment at the end of the
construction phase; Workforce environmental and social training and
awareness programs, and local skills development; and Training to ensure
workforce have the skills to perform their responsibilities.
 Adhering to the submitted detailed program for recruitment and training of
Ugandan citizens, approved by the Petroleum Authority. This training program
includes training in all phases of operations, and take into account gender,
equity, persons with disabilities and host communities. It includes scholarships
and other financial support for education, and be carried out in or outside of
Uganda.
 Adhering to the commitment to transfer knowledge to Ugandans, to establish
management and technical capabilities as well as facilities for technical work in
Uganda.
 Giving priority to the training and employment of “suitably qualified” Ugandan
citizens, as well as train Ugandan citizens for positions including administrative
and executive management positions.
 Gradually replacing the expatriate workforce with “suitably qualified and
experienced” Ugandan citizens. Or else convince the Advisory Committee
established that no suitably qualified or experienced Ugandan citizens are
available for key senior management or technical positions before it can hire or
keeping expatriate staff.
 Giving preference to goods produced or available in Uganda and services
provided by Ugandan citizens and companies (undefined), which must have the
capacity to add value and to meet health, safety and environment standards,
and meet criteria specified in regulations prescribed.
 Establishing appropriate procedures for procurement of goods and services to
ensure that suppliers and sub-contractors in Uganda are given adequate
opportunity to compete.

4.0 EMPLOYMENT OF LOCAL PERSONNEL

4.1 RECRUITMENT OF UGANDAN CITIZENS


Byzantium employs Ugandan citizens at all levels of the organization on a preferential
basis, including specialists in technically complex and managerial positions.
Byzantium only employs foreign workers on a short-term basis to perform any type
of work for a period of up to 180 days, whether consecutive or not. Byzantium
employs 6 skilled Ugandan staff and 3 semi-skilled staff. These staff will be directly
involved in the execution of projects.
Byzantium also employs 3 key staff in Management positions; 1 Project Manager, 1
QHSE Manager, and 1 Human Resource Manager.
Table 1 shows Ugandans employed in Management positions at Byzantium
Uganda Limited
Category/Discipline Qualification/Certification Quantity Ugandan
YES/NO)
Project Manager Master of Human Resource 1 YES
Management,
Bachelors of Arts (Social
Sciences)
Human Resource Bachelors of Human 1 YES
Manager Resource Management
QHSE Manager B.Sc. Petroleum 1 YES
Engineering/ NEBOSH/
IOSH/ ECTIB certified
Admin Manager Bachelor of Business 1 YES
/Document Administration
Controller
Finance Manager Bachelors in Accounting 1 YES
and Finance, CPA, ACCA
UCE/Defensive Driving
Driver 1 YES
Certificate/HSE certificate

For Projects, Byzantium has adopted the following recruitment and employment
policies: Entry- level, unskilled positions shall only be filled with Ugandan nationals;
the selection of Ugandan personnel shall be based on prioritizing employment
opportunities to the communities of the project implementation, ahead of other
regions assuming equal qualifications and experience. The latter policy is based on a
principle of attempting to provide maximum benefits to those communities with
potential exposure to greatest impacts.
Byzantium will work with the district-level government to develop a local workforce
database of directly impacted households and potential candidates for unskilled
employment and training opportunities to prioritize local opportunities.
For skilled and semiskilled Worker recruitment, Byzantium shall:
 Provide all rejected candidates an explanation on why they were unsuccessful
and advise on what they can do to rectify this (if rectifiable) and consider the
use of committees, community representatives, local officials, and other
considerations, as needed, to effectively communicate and ensure no bias is
perceived by rejected candidates.
 Shall develop job descriptions of the various positions required. The job
description shall include a list of necessary qualifications, previous
experiences, and any required supporting documentation.
 Shall establish Recruitment committees to identify and recruit candidates in
Uganda. The Recruitment Centers shall provide information about the
Project, potential jobs that are available (job descriptions), employment
requirements (necessary pre- qualifications, certifications, medical clearance,
background check, drug and alcohol testing, closed camps, rotations, etc.),
and application and selection processes.
 Shall deploy and maintain a database that contains candidates' personal
information, legal documentation, qualifications, and expressions of interest
for employment positions that align with the aforementioned job descriptions.
Each Recruitment Center shall track the number of candidates registered,
expressions of interest submitted, candidates assessed, number of candidates
hired, and hiring entity of national staff.

5. LOCAL GOODS AND SERVICES UTILIZATION PLAN


 The procurement of goods shall be in accordance with the national aim of
preference for the procurement of goods and services from Ugandan companies,
Ugandan persons, or in partnership with Ugandan companies or persons with a
view to empowering the Ugandan private sector.
 Preference will be given to Ugandan suppliers of goods and services only to the
extent feasible and provided that such goods, materials, services, and
equipment perform the following: a) Are competitive in terms of quality and
deliverability. b) Meet international industry standards. c) Do not cost
(including taxes) over 10% more than the price of equivalent imported goods
and services.
 No preference to Ugandan suppliers shall be required in respect of principal
contracts and/or goods and services related to technology; patents; or
specialized supplier equipment, including in connection with the construction,
operation, and maintenance of infrastructure related to the Projects.
 Contracts concerning the procurement of goods or services valuing more than
US$3 million must be subject to public tender. This threshold amount will be
adjusted annually in accordance with the then applicable U.S. consumer price
index (CPI).
 sole source procurement shall be admissible in certain circumstances—for
instance, in the event that only one supplier can provide the relevant products,
materials, services, or equipment or if the goods to be acquired need to be
uniform to existing goods in any facilities and/or infrastructure.

6. LOCAL COMPANY DEVELOPMENT


To contribute to Local company development, Byzantium shall:
 Maximize the participation of Ugandan suppliers
 Stimulate capacity building in selected Ugandan business sectors where
sustainable activity is expected, such as support to Production and/or non-
Project related business
 Develop local suppliers of goods and services to be economically attractive and
competitive against imported goods and services for like quality.
 Meet with PPDA to regularly solicit lists of qualified registered businesses to
include in the respective bids.
 Improve competitiveness through increase in numbers of qualified local
suppliers.
 Identify goods and services that can be provided/subcontracted to local
suppliers, and target procurement of these requirements to qualified local
suppliers (e.g., catering services, civil works, security services, bussing, quarry
material supplies, etc.).
 Actively qualify local suppliers and maintain a register of qualified Ugandan
suppliers. As part of this register, Byzantium shall indicate which suppliers are
Ugandan owned (Ugandan citizen ownership must be > 51%).
 Offer mentorship and training on improved business processes and product
quality to develop suppliers who show promise in spite of not meeting initial
qualification requirements.
 Actively identify further opportunities for local supplier development and
implement them, as practical.
 Stimulate capacity building in selected Ugandan business segments where
sustainable activity is expected.
 Inform the business community about goods and services needs as early as
practical, including descriptions of the scopes to be tendered, applicable
technical specifications, delivery locations, and schedules to facilitate
maximum participation.

7. LOCAL CONTENT PLAN

Employment: Byzantium Uganda Limited will have a working relationship with


employees through employment contracts on both full time and part time basis. These
agreements will be drafted by the organization’s legal team with guidance from the
national employment Act and other laws.

Supply contacts: Will be engaged in supply contracts with local suppliers which
relationship will be governed by the Company’s Act of Uganda and contract laws of the
land.

Procurement of Goods Obtainable in Uganda; All goods and services which are
available in Uganda must be obtained from within. However, they will be procured
through competitive bidding and the Procurement and Finance departments will be
responsible for this function.

Collaboration with Ugandan Registered Firms: Where need arises, Byzantium will
establish or be engaged in joint ventures, partnership or subcontracting agreements
with Ugandan companies, Ugandan citizens and registered entities; following the
laws of the Republic of Uganda and in particular the Company’s Act of 1995 and
other laws. And the desolation of the later will be still under the laws of the Republic
of Uganda.

Capacity building: The design and implementation of capacity building programs


aimed at transferring skills, know-how and technology to the selected Ugandan
companies, Ugandan citizens and registered entities during the execution of the
contract.
During the execution of projects, Byzantium Uganda Limited intends to implement
capacity building programs for selected company staff especially at the technical and
management level.

Majority of over 80% of the staff at Byzantium Uganda Limited are Ugandans and the
reason for the staff training program is to enhance our employees’ skills in project
management and implementation in the Oil & gas industry. There will be both in
house trainings and others based outside the organization.

Byzantium regularly conducts in house trainings and promises to continue with


that project and the reason of this is to promote knowledge and technology transfer.
Instructors and consultants are acquired from different countries and others from
local consultancy firms and institutions of higher learning from Uganda.
Table 2: Shows a list of Local Companies/Suppliers that Byzantium works
work with for the supply of the different supply needs
S/N Name of Ugandan Brief Address
Sub-Contractor Description
1 UAP Old Mutual Supplier of social, 6th Floor Nakawa Business
medical, life and Park, Plot 3-5 New Port Bell
accident Road, P.O.BOX 7185
insurance. Kampala, Uganda

2 Roke Telecom Uganda Supplier of Guardian Georgia Building


Internet services Plot 67 Spring Road; Bugolobi
Kampala (Opposite Absa
Bank)

3 KK Security Uganda Supplier of Plot 3 Bandali Close City


security Centre Complex-4th Floor
services. Suite j-21 P.O.BOX 28293,
Kampala.

4 Bugolobi Medical Supplier of Plot 134/136 Spring Road,


Centre medical and ER Bugolobi
services

5 Blue Wave Beverages Supplier of Plot 3 Fourth Link Road,


Limited bottled drinking Luzira Industrial Park
water Kampala

6 BAMZEE Electrical Plot 23 B, 8 TH STREET


ELECTRICAL solutions provider INDUSTRIAL AREA,
COMPANY LIMITED NAMUWONGO ROAD,
(NS-11934/18/0935) Building JOSHI ELECTRICAL
AND GENERAL SERVICES,
Makindye Division, Kampala
joshielectrical23@gmail.com
+256772420111
6 KAMAGE Stationery/ and Plot 41A/B, Nasser Road,
ENTERPRISES Printing services Building Crane Apartments,
LIMITED (NS- Floor Ground Floor, Room
12747/19/1727) Opposite Printer's Arcade,
Civic Centre, Kampala Central
Division, Kampala
lanicenterpriseltd@gmail.com,
nsubugadeo.lanic@gmail.com,
+256414347073,
+256772422459
7 CATERING Catering services Plot 28, BANDALI RISE,
INTERNATIONAL & Provider BUGOLOBI,
SERVICES UGANDA BUGOLOBI, Kampala Central
LTD (NS- Division, Kampala
10195/17/199)
8 KOOVINE Water collection, KAMPALA ROAD, Floor 7,
ENVIRONMENTAL treatment and Kampala Central Division,
PROTECTION supply Kampala deotinda@gmail.com
TECHNOLOGY CO., ferest.investiments@gmail.com
LTD (NS- +256702010109,
12871/2020/1851) +256779002924
9 KK SECURITY Manned Guarding, Plot 26, Bandali Rise, Building
UGANDA LIMITED Canine services, Security Plus, Bugolobi,
(NS- 10040/17/148) Security Systems Nakawa Division, Kampala
and service, Fire info@securityplus.co.ug
and safety +2560200905789,
+256750333336,
+256750333339,
+25675758845

Quality, Health, Safety and Environment Standards for Goods and Services:
The goods and services to be supplied will and must comply with the Uganda
national standards set out in the respective regulations as regards to goods and
services. Goods that are non-compliant in terms of quality, safety and environment
friendly as regards to national regulations will not be accepted. This decision will be
determined with consultation from UNBS and other local authorities concerned.

Provision of Local Goods and Services: The National Content Petroleum Policy in
Uganda advocates for participation of local firms which Byzantium Uganda Limited
follows while conducting business in Uganda. However, local suppliers need to be
enhanced through encouragement of local enterprises participation in call for
tenders. The company has in place a data base for prequalified local suppliers from
which we source for goods when need arises. Byzantium Uganda Limited intends to
run local adverts while sourcing for goods under competitive bidding but special
attention will be given to local contractors.
Byzantium will only source for supplies from outside Uganda only when the local
suppliers have failed to meet the set standards of goods to be supplied or lacking
capacity to do so. The contracts will be unbundled into work packages to enable the
participation of Ugandan citizens and enterprises.
Byzantium Uganda Limited engages and will continue to be engaged in consortia,
partnerships and collaborations while implementing the different projects. The spirit of
this is to encourage local content and skills and technology transfer.

In addition to that, Byzantium Uganda Limited is in the process preserving some


supply works for Ugandans only. We intent to give preference to goods and services
which are produced in Uganda and services that are rendered by Ugandan citizens,
Ugandan companies or registered entities.

Guarantee for staff ability needed to execute/implement the project:


Byzantium Uganda Limited guarantees that the employed Ugandan citizens are in
conformity with the requirements of the contract and the project in particular. All
the staff have all the necessary experience, language requirements, facilitation and
skills to make the projects Byzantium will undertake a success.

Remuneration strategy: Byzantium intends to offer a competitive salary in


comparison with other sector players and according to other prevailing conditions
and terms like experience, education level and negotiations with potential
candidates will be valued in high regard. A fair remuneration will be determined
through making consultations on the prevailing remuneration of similar firms in the
same sector and Byzantium Uganda limited guarantees a competitive one.
Activity Specific Training Requirements: Staff members that will be directly
involved in the execution of projects will be given the opportunity to get further
training that will enable them to better perform their roles and responsibilities. This
will be implemented on a fair and equitable basis for all the respective staffs.
Certifications: Byzantium Uganda Limited plans to help good performing students
and instructors to get international accreditations/certifications in different areas
such as Welding and QC Inspection.
Ugandans will be given first consideration for employment in any project executed
by any Byzantium Uganda Limited and its local partners and will comply with
regulatory requirements in respect to work permit applications for expatriate
personnel.
Byzantium will submit regular reports on employment and staff training activities
and, ensure equity and fairness with respect to staff and training in the oil and gas
industry as required by the laws of the Republic of Uganda.
Byzantium will publicly advertise all available positions and submit recruitment
reports to stakeholder according to the National Petroleum Authority guidelines and,
regulations and will promote gender balance, maximize participation of youth,
persons with disabilities and the local communities.

Provision of Management Services and Succession Plan: Byzantium Uganda


Limited has all the necessary man power that is needed to implement projects that is
composed of majorly Ugandans and some expatriates from abroad who fill the skills
and knowledge gap that exist in the country. This and the following information
explain the local content aspect for this project;

Skills and Technology Transfer: Byzantium Uganda Limited recognizes that


technology and skills transfer are key for the development of the oil and gas
industry. We are committed to making sure that our company expert staff transfer
their technical know-how and technologies to Ugandan citizens and the partner
organizations. This will be done through exchange programs, mentorship programs
and on job trainings and offering internship programs mainly for students from local
learning institutions.

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