Maximising the contributions of local enterprises to the supply chain of oil, gas & mining projects in low income countries

A publication from Engineers Against Poverty for the extractive industries - an eight-page briefing note to guide oil, gas and mining (OGM) companies on how they can maximise the contribution of local enterprises to the supply chain of their projects in low income countries.

It provides practical guidance on three major opportunity areas to increase local enterprise participation in project supply chains:

• modifying procurement policies and processes
• modifying contract documentation
• supporting the efficacy of supplier development programs
  

The briefing note, which contains six case studies from industry, draws on EAP’s expertise in contractor management, social development and procurement. In particular it highlights key lessons from EAP’s on-going research collaboration with the Institution of Civil Engineers, which is investigating how social objectives can be delivered through procurement processes.

The quantity of investment in OGM projects in developing countries over the next twenty years is likely to be much greater than total international aid flows. If this investment is designed and managed to maximise sustainable economic opportunities for local communities, it can make a major contribution to the achievement of the Millennium Development Goals in many countries.

Involving local businesses and especially small and medium enterprises in the project supply chain is a crucial part of this opportunity because of the vital role these businesses play in promoting job creation and distributing the benefits of economic development more widely.