We have a Local Content Plan now what?

Transcription

1 We have a Local Content Plan now what? An EPCM Perspective

2 2 Agenda What we already know Local Content Plan - A Case Study We have a local content plan now what? Continuous improvement Key Messages What can you do differently on your next Project

3 What we already know Purpose and Importance 3 Social license to operate Building relationships with and support from communities and government Capturing opportunities within the local workforce and marketplace Sustainable development of local l community and business Lack of early planning and implementation for local employment and procurement poses a risk to long term success

4 4 What we already know Challenges Limited skills, training, and capacity to meet construction needs. Projects have high standards and expectations for health and safety, quality, engineering, environmental protection, etc. If international contractor expectations are not managed, this can create tension where locals are seen as under performing. Budget and schedule limitations for on-the-job support and training. Alignment between owner, EPCM, and sub-contractors on project standards: local content definition, policies, and practices.

5 What we already know Fundamentals for Sustainable Local Sourcing 5 Local Labour Sustainable development of the local workforce Maximizing employment of local communities Ensuring international contractors hire locally, where possible Local Maximizing i i opportunities for local l business Engaging with suppliers & contractors in a transparent way Businesses Training & Capacity Building Provide sustainable development for local supply chain, contractors and workforce Developing skills, training, and capacity to meet construction needs and future operators

6 6 Local Content Plan Case Study: West Africa Project commitment to create 4000 local jobs through recruitment and procurement Community investment in 10 villages in the mine neighbourhood Study scope: Development of a Local Workforce Strategy Identify project needs Establish baseline of the capacity available in country in terms of employment, procurement and vocational training

7 Local Content Plan Methodology 7 Desktop review of project document Interviews, discussions and data collection with Client and project engineering team Interviews and discussions with national and regional authorities Review and analysis of reports prepared at the national level, on human resources availability and local companies capabilities for their involvement in the mining industry Data treatment and analysis of information collected from various sources

8 Local Content Plan Employment Distribution Exploration Phase 1 Phase 2-3 Mine operation ( ) Total construction

9 Local Content Plan Findings and Recommendations 9 Available Low skilled jobs (e.g. local truck drivers) and positions of higher qualification (engineers, public works) Most of the workforce is skilled in an informal sector with capabilities acquired through on the job learning Unavailable Mid-level technicians in many areas Vocational training center skills are not always adapted to the mining and infrastructure industries needs Unskilled jobs need capacity building: reading, writing and calculations Opportunities New skills are being developed through the demand of existing mining companies and other private sector companies Chamber of commerce is partnering with international schools to create a new mining school Promote current businesses in the region: industry, handicrafts, commerce, services

10 10 LOCAL EMPLOYMENT AND PROCUREMENT STRATEGY TARGET / TYPE OF EMPLOYMENT TRAINING PROVIDED TRAININGSOURCES TRAININGDURATION PROFESSIONAL DEVELOPMENT PROGRAM High achieving individuals Fast Track management and Professional development programs: Supervisory and team management skills Decision making, problem solving ans communication skills Expatriates Nationals National and International training centers 2016 Mine life (Short term training programs) We have the VOCATIONAL TRAINING & CAPACITY BUILDING Selected Employees General Labor, Professional offoce workers, Geologists, Infrastructure specialists, Transport specialists Students recruted in the region and elsewhere in the country (in the project area) Potential suppliers Local communities Chamber of commerce school of mine Vocational Local (forthcoming), FADA N'Gourma Engineers training needs to be identified (mechanical, Content school, Ziniare training center, National electricity, IT, civil etc.) Agency for employment, 2IE, Public Works training center (EFP/TP) Plan Entrepreneurship and businesses development in selected sectors (Business Incubator) Potential suppliers capacity development programs Adults literacy and numeracy Chamber of Commerce, Business House Adult literacy: National experts SEPTEMBER 2013 Mine life (Short,medium and long term programs) ON THE JOB TRAINING Mining specialists(engineers, technicians, specialised technicians) Now what? Technical skills Knowledge of the ore body Equipments operation (mining trucks) forklifs, backhoes, lights and loaders Using technology Health & safety TRAINING DURATION PAB TRAINING CENTER Expatriates and Nationals training team SEPTEMBER 2013 MINE LIFE (Continuous learning) INITIAL TRAINING PROGRAM FOR NEW RECRUITS All Employees General labour Profesional office workers Mining specialists (Engineers, technician, specialised technicians) Infrastructure specialists (civil, public ans water works) Transport specialists Cultural induction Group work Communication Basic notions of health & security Expatriates Nationals JULY 2013 ONGOING (Regular training cessions for new arrivals: 1 2 weeks)

11 Project Lifecycle: Engineering, i Procurement & Construction ti 11

12 Snap Shot Operations vs. Construction 12 Operations Engineering & Construction Location Highly visible, operating within Remote, often not arriving ing in full force until the community construction begins Duration Long-term years Short-term 2-5 years (variable) From start of feasibility to completion of construction Responsibility Single entity responsible Multiple entities responsible Engineering, Procurement and Construction are typically separate from EIAs and/or special studies (e.g. Local Content Plan) Drivers Long-term goals and objectives, including planning for localization of an ex-pat workforce Short-term goals and objectives that are focused on schedule and budget Impact Intensity Low to medium High Significant changes in dust, noise, changes to landscape, population influx, local infrastructure and service demands

13 Implementation Critical Steps for EPCM Transfer to EPCM Feedback performance in the screening documents to update capabilities. Identify training needs and opportunities 13 Identify Needs Identify Local Businesses Assess Capabilities Integrate Businesses Understand the project needs Understand the indirect project needs Proactive identification of suppliers and contractors in regions where desktop identification is not sufficient Pre- Screening and qualification processes to confirm capabilities. Ensure entity meets Project requirements (e.g. local) Develop transparent bidding process. Setup standalone, joint venture, subcontract or smaller scopes. Support in the bidding process Proactive interfacing with local businesses on how to do business with the Project

14 14 An Integrated Approach Ensuring implementation of a sustainable local procurement plan to support Construction Local Sourcing is spearheaded by procurement but requires input from and collaboration with various parties: EIA Consultant Human Resources Human Resources Industrial Relations Community Relations Government Relations Recruitment and Training Local Sourcing Government Relations Recruitment and Training Construction Construction ti Community Relations

15 15 What does this mean? Processes and Procedures for EPCM Project requires a mandate (goals, objectives, targets) for local content The mandate must cater to the needs of Project procurement, contracting, and construction management Mandate needs to be captured in all stages of Project development: Make an early commitment to a training and capacity building strategy (budget and schedule) Include local entities when preparing bidders lists Establish contracting strategies (for locals and internationals) Develop construction work packages in consideration of local capabilities Establish criteria for bid reviews Review and assess bids for local content Develop local hiring requirements for international contractors Report! Establish key performance indicators and report on success

16 Continuous Improvement Hatch Global Procurement Intelligence (GPI) 16 Supplier information Supplier performance Supplier recommendations + Category, Country & Project type sourcing intelligence Hatch GPI Core TEAM GPI Suppliers Categories Projects Countries Hatch Projects Suppliers

17 Continuous Improvement GPI - Supplier Ratings Process 17 Suppliers ABC Intelligence Feedback Qualifications CredentialsC d i l Size and location Macro-economic intelligence Logistics Costs Exchange Rates Labour Rates Country Risks Hatch Supplier Manager for Supplier ABC Categories Reviewed and approved by GPI Category owner(s) Suppliers ABC Ratings Supply Quality Offering Geographical Competitiveness Countries Reviewed and approved by GPI Country owner(s)

18 18 Key Messages Construction plays an important part of the overall Local Content Plan, but needs a dedicated approach Construction has different needs than operations: short term, high impact, different skill sets, different compensation & benefits, short timelines for training and capacity building If construction is planned properly, it can support transition to operations and local content planning for the long term Construction requires coordination with multiple disciplines, perhaps more so than operations; cannot be a desktop study done in isolation

19 19 Thank you! Acknowledgements: Mohammed Ali Gisele Belem Peter Higginbottom Eugene Iacob For more information, please visit