NP, Working with The Gambia’s PURA

Mandated by the Public Utilities Regulatory Authority (PURA) Act 2001 to regulate public utilities, which include telecommunications, broadcasting, internet service provision, water, electricity, and petroleum in The Gambia, PURA is a multi-sector regulator that has been in existence since 2001, approximately 23 years.

The petroleum industry has three sectors: upstream, midstream, and downstream. The Gambia has separate institutions responsible for regulating the upstream and midstream, while PURA regulates the downstream petroleum sector.

PURA’ work mainly entails implementing requirements in the regulation by taking a supportive approach. In the context of regulation, the industry is quite new in the country. The Petroleum Products Act 2016 highlighted the need for liberalization of the industry, and accordingly, the regulatory mandate was assigned to PURA. This particular Act also has supporting regulations in the areas of the retail sector, health and safety, petroleum bulk storage facilities, importation, and all other valued activities in the downstream sector.

Ismaila Jandama works with the Directorate of Petroleum, Water, and Electricity, serving as the Petroleum Quality Assurance Manager. NP Communications met with him in The Gambia and had a chat with him.

How does NP fit into your work, and has NP been compliant with PURA’s regulations?

As a retailer and importer, NP operates in the downstream industry, which falls under the purview of the regulatory landscape being reviewed and checked by PURA. Like any other licensed operators, NP’s operation, which encompasses retail and service stations, makes them a good fit in the industry and the work we do. Therefore, they are required to fulfil specific regulations as prescribed in the relevant regulations, particularly the service station regulations.

If they intend to conduct or operate any new service operation, they must channel all necessary steps relating to permit issuance through PURA. Of course, the license is also being processed at the PURA level. Within the context of our laws, the Minister of Petroleum issues licences upon the recommendations of PURA.

In terms of the recommendations at retail and service stations, PURA conducts regular health and safety inspections quarterly, with robust monitoring to ensure that the requirements set forth in the law are met.

So far, in terms of minimum health and safety requirements and regulatory processes, there has been remarkable compliance on the part of NP.  There is a proliferation of retail stations in the country. As such, we have operators who start construction without following due processes, which first entail obtaining the authority’s approval to confirm that a site, such as Yamack, is suitable for constructing a fuel station.

From our records, NP has consistently demonstrated a high level of compliance regarding site screening and respect for the authority’s decisions on site approval. Of course, at the operational level, the minimum expectation, in terms of observing the required health and safety protocols, as well as instituting health and safety requirements, NP has demonstrated some level of compliance, which is highly recognized by the authorities.

This refers to the interplay between the regulator and other players in the sector, particularly as it relates to operations in the downstream.

You have been here and you understand the market. What is your opinion about the NP brand in The Gambia? Is it strong? If not, what are the challenges that arise?

From a regulatory perspective, I can attest that NP is a reputable brand. It is reputable from the perspective of regulatory compliance.

Of course, the market is highly competitive. We have a large number of players in the retail subsector, and as such, your dominance likely depends on the extent of your retail footprint. But, from our perspective, it is more in terms of how compliant the respective players are with regards to the requirements or regulations that are in place.

I would say they are doing pretty good. The compliance aspect is more of a process, so you have to really own the work. It is not a one-off entry. Let us say they are more into retail. They have approximately five stations that are currently operational. It is essential to ensure that the level of compliance they have maintained from the outset continues to grow, as this is what the regulator counts.

We have also seen their contributions in the sector. The level of branding of their stations makes them stand out, and the location in which they are adds more value to them. That is a positive development from their side, and we look forward to seeing it grow over time.

What measures do you have in place for handling complaints? For instance, if there are things that NP is dissatisfied with regarding your operations, how does the company channel its complaints to your institution?

At the PURA level, we have various complaint resolution mechanisms. It depends on the type of complaint. Generally, as a regulator, we have a supportive approach to regulations. For instance, if there is a counter-argument regarding a decision on a particular site, what PURA typically does is try to ensure that it applies the full requirements of the regulation, as it has specific provisions related to site screening. Once this is done and we realise that the site is not fulfilling those requirements, the community will not have to be made official for that particular applicant or the proponent.

Depending on the core reason that has been presented as the basis for the conclusion, the applicant could provide details as to why they think a particular site is suitable. This only applies if the core requirement of the regulation has not been fulfilled, and that decision has to be channelled to the Minister of Petroleum. This is what the statutory requirements are.

If PURA feels or deems it reasonable to consider issuing a waiver or recommending it for the minister’s consideration, once the initial arrangement has been forwarded to the Minister, the Minister, according to the constitution, establishes a committee to review that particular complaint or appeal. The committee will advise the Minister accordingly, and then he takes a decision.

There are other areas or arrangements where PURA would recommend to the Minister that, Based on our assessment, we feel this particular applicant has not fully met this requirement. However, the missing element is not as significant as we think; therefore, we recommend that she open the station. The Minister could also act based on that.

Essentially, these are the two primary arrangements for site screening. In addition to these, decisions will be strictly based on the requirements of the law. There are instances where third-party expertise is also sought to add value or bring different perspectives from an industry expert field to inform decisions on a particular issue. However, so far, we have not faced any significant challenges in resolving issues related to regulatory decisions, as the law already provides for the channels that can be explored in the event of a dispute.

What is PURA doing to enhance efficiency within the industry?

We are doing regulations in different aspects. Our approach to regulations differs slightly from that of other countries. In this sense, we understand the nature of the industry in which we operate, as we have both well-established players and new entrants. As such, to create a level playing field, we must bring them on board by fostering engagement, and therefore, we have had several bilateral engagements with industry players.

We have also tried to ensure that the permitting processes are as transparent as possible. We have specific guidelines for certain permits and specific guidelines for even license applications. We have a dedicated directorate responsible for not only consumer-related matters but also disputes between license entities. The legal directorate is also responsible for handling such cases as they arise.

We have a broad spectrum of players engaging with PURA and regulated entities, as well as between regulators and those with limited experience in petroleum operations. We take it on a case-by-case basis to ensure that virtually everybody is on a level playing field.

What advice do you have for newcomers to the petroleum marketing industry?

Let them be patient and follow due processes. The petroleum downstream industry has been operating for some time, but the fact that regulations were introduced a little late means that many issues have likely arisen that need to be addressed now. As such, becoming familiar with the requirements of the law is crucial. As a new entrant, it is essential to understand the regulations and Acts that govern the sector, including permitting processes, regulatory guidelines, and requirements. These are critical to the success of your business as a new entrant. That is generally the advice I could give.

Any advice for NP?

For NP, I would advise them to continue engaging with the regulated authorities at all levels and feel free to contact us regarding any issues they may have. We have an open-door policy, and as such, if they have any doubts, they can work in and make enquiries, and somebody will be there to guide them through.

Is there anything I haven’t asked that you feel compelled to address?

I don’t have much to add to what I’ve said, as it will likely be repetitive. However, it is generally beneficial to collaborate with and view regulators as partners who support their businesses. Let them work towards ensuring that they adhere to the regulations’ requirements in terms of compliance. It is a partnership. We are development partners. Once that is upheld and reserved, I believe it will all go well and there will not be any challenges along the way.