On Wednesday night, the Large Investment Incentive Regime (RIGI) was approved with 38 positive votes with some modifications. Now, projects must have a local supplier development plan. In Neuquén «We work on a distinctive regime for Neuquén SMEs in the Oil&Gas sector«said the Secretary of Production and Industry, Juan Peláez.
The incentive regime was created with the objective of encouraging the arrival of investments to the country that exceed the 200 million dollars. Among the sectors included is oil and gas, which proposes fiscal, exchange and tax benefits.
Articles of the RIGI were modified in the Upper House and added requirements for the investment plan, where they must detail a development scheme for local suppliers to which they must allocate at least 20% of the investment destined for these companies. In turn, it is necessary to add an estimate of direct and indirect employment with local integration.
According to the system, supplier firms must be competitive, since they will not force investors to purchase products “under conditions less favorable than market conditions«. Likewise, jurisdictions may “promote and implement policies for contracting local suppliers under market conditions.”
«Neuquén is the only province that has legislation that promotes and defends Neuquén SMEs in this categorical way.which is Law 3338 on “Strengthening and Development of the Neuquén Value Chain,” Peláez stated in dialogue with Power On.
The regulations, also called the Buy Neuquino Law, establishes that Companies in the hydrocarbon sector must allocate 60% of the amount to suppliers to certified Neuquén firms. “The most likely thing is that if these investments come to the province they will come to this sector,” said the representative.
The law aims to have prior information at the time of awarding a contract by the obligated subjects. These plans are presented to the Neuquén Certified Companies so that they can work on an offer to present to the companies that is competitive and meets their objectives.
The incentive regime for SMEs in Neuquén
«What the RIGI does not delve into is the plan for the development of suppliers, it is a gap that exists. We want to fill it and this was announced by Governor Rolando Figueroa in Houston and he gave us instructions so that Let’s work on a distinctive regime for Neuquén SMEs«he commented. The project is still being prepared to present to the Neuquén Legislature.
The specific regime for SMEs in the province aims to Third and fourth ring companies in the value chain are developed. These are made up of service provider SMEs, which offer transportation, logistics or repairs. “It is a very important incentive that this entire sector will have in addition to the national RIGI,” he highlighted.
«It is important that Neuquén companies, beyond being certified, continue hiring jobs from Neuquén and not from other provinces. This cannot be indifferent to anyone, neither to the business chambers nor to the union. “We have to take care of Neuquén’s employment,” he said.
The incentive regime for SMEs in Neuquén aims to “ensure that there is support for the sector, as well as a diversification of the productive matrix. It is important that this income that companies also obtain is reinvested in the Province“said the official.
In Neuquén, “an effort by different sectors and the provincial State is reflected so that companies do well. We are facing a window period of 25 to 30 years where we Neuquéns have to monetize Vaca Muerta. We have to achieve the greatest possible exploitation, but taking care of Neuquén companies and employment along with national income and we have to do it together,” he concluded.
