Tullow Kenya B.V
P. O Box 9
15th December 2018.
REF: TULLOW LIGHT VEHICLE SCHEME AND COMMUNITY EXPECTATIONS
Noting, Tullow’s local content policy: Tullow works to increase the participation of local business within its supply chain to ensure the oil and gas sector creates long standing positive impacts on the economies and lives of local communities where it operates. Tullow aims to support local companies to grow and develop so that they secure business from other international companies. Under Tullow’s contract strategy it requires international suppliers to commit to sourcing of good and services from local companies.
Recalling, government of Kenya as a Joint Venture (JV) partner: The constitution of Kenya article 56 provides that the state shall put in place affirmative action programmes designed to ensure the minorities and marginalised groups are provided special opportunities in economic fields.
Understanding, Turkana community expectations: Benefits that will accrue from Tullow’s project activities will be shared by the impacted communities equitably without discrimination, ill political interference, elites capture and without corrupt deals among the Turkana elites, officials and Tullow staffs at the expense of small and up-coming local companies. Turkana community members expect that business opportunity that will be available should be aimed to empower all interested local companies but NOT only to empower those who have already benefited and already established in the supply chain (concentration of economic power to few individuals in the name of the whole community). Impacted communities are aware that there will be few business opportunities during oil production stage and therefore they expect the few business opportunities that will be available to be shared equitably not the same people every time.
Understanding, Light Vehicle Scheme: Few years ago Tullow spent almost $ 2.5million to outsource 36 vehicles from Toyota Kenya. Tullow awarded all the 36 vehicles to local companies in Turkana, this was a good move, thanks be to Tullow. The expectation of the community was that the vehicles would be awarded to community groups, e.g youth, women, associations, PWD, self-help groups with limited registered companies but went to individuals companies. Next year 2019 business community in Turkana expect those individuals companies that were awarded second round light vehicle scheme contracts to SUB- CONTRACT the supply of vehicles to the rest of small local companies in the community: NOTE sub-contracting should not be done according to family lines, friends, political affiliations(local-local) but to be advertised and companies to compete accordingly. For the purpose of sharing benefits from the project the awarding of contracts to supply vehicles should not be given to those who won tenders during phase one but to new local companies that are owned by community groups or associations (moto iwashwe kwa boma singine pia).
Those companies which have been contracted to supply light vehicles come next year should commit themselves as well in sub-contracting the same. Sub-contraction clause in the contracts should not be optional.
One of the causes of conflicts anywhere in the world between multi-nationals oil companies and the communities hosting oil is poor distribution of benefits accruing from the project. Poor sharing of project benefits within the community can result to inter-community conflicts and intra conflicts. We are looking forward to the creation of good corporate-community relations.
On the behalf of small local companies in Turkana representing their concerns,
Johnbaraka Erika Founder/Chairman
Turkana Empowerment Advocacy GROUP (TEA-G)
1. Founder / Chairman
Nakukulas Economic Development Organization (NEDO)
Contact : 0713127828
Email : firstname.lastname@example.org
Cc Cabinet Secretary Ministry of Petroleum and mining
Chairman (Turkana County Commissioner)
Turkana Grievance Management Committee
H. E Hon
Governor Turkana County
Hon Malick Ekal
Senator Turkana County
Hon James Lomenen
MP Turkana South
MP Turkana East