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International Finance Corporation World Bank

September 2007, Engineers Against Poverty (EAP)

This briefing note provides supply chain managers and technical end users on oil, gas and mining (OGM) projects in low income countries with practical guidance on maximising the involvement of local enterprises in the project supply chain.

Part One addresses four key questions:

* Why engage local enterprises in the project supply chain?
* How do you define local enterprises and what can they supply?
* What are the key challenges for supply chain managers and technical end users?
* How can these challenges be overcome?

Part Two provides guidance on three major opportunity areas to increase local enterprise participation in the project supply chain:

* Modifying procurement policies & processes
* Modifying contract documentation
* Supporting supplier development

This briefing note focused on the critical role of supply chain managers and technical end-users in engaging local enterprises. These personnel will typically face pressures in their roles that may act as a disincentive to engaging local enterprises. However the briefing note has demonstrated a range of enabling measures that can facilitate the achievement of local enterprise participation, particularly through the modification of procurement processes and documentation.