Published on: Thursday, April 19, 2007 |
The State Government will look into the low number of local Bumiputera contractors being awarded contract by Petronas in the development of its petrochemical industry in Kimanis, Papar.
Minister in the Chief Minister's Department Datuk Nasir Sakaran told the State Legislative Assembly Wednesday that the Government was actually making efforts to increase the number of local Bumiputera contractor participation in the said development.
He was replying to Klias Assemblyman Datuk Lajim Haji Ukin who asked whether it was true that out of more than 90 contracts awarded by Petronas, only five went to Sabahan contractors and that of the five contractors only two were Bumiputera while the rest non-Bumiputera.
Lajim also asked the Government to request Petronas to give more priority or opportunities to Sabahan contractors in awarding of contracts in its development projects in the State.
Nasir said Petronas would normally award contracts to Bumiputera contractors holding the PKK licence, listed in its panel as well as having vast experience, high expertise and capabilities.
He said those Bumiputera contractors who do not fulfill the said criteria, however, could still apply for contracts through joint-venture with another party which has the vast experience and high expertise as required.
"The Government has actually already had a series of discussions with Petronas to request for more opportunities for Bumiputera contractors from Sabah to get involved in its development projects and programmes," he said.
Earlier, Nasir said the Sabah Industrial Action Plan has identified resource-based industrial development like the petrochemical industry which has the potential to be developed in the State.
Petronas has introduced gas and crude oil in Kimanis, Papar, through the Sabah Oil and Gas Terminal (SOGT) project, the ground-breaking ceremony of which was officiated by the Prime Minister on Feb. 15 this year. The project is expected to be completed by end of 2010.
He said the project has given the State Government an opportunity to explore further in petrochemical industry.
"The proposed Petronas project in Kimanis is not a refinery, but it is actually a facility for receiving, storing and exporting crude oil as well as for processing and storing gas and other related facilities," Nasir said.
He was answering a question from Sebatik Assemblyman Datuk Dr Patawari Patawe and Sook Assemblyman Tan Sri Joseph Kurup.
Explaining that the State Government through the Industrial Development Ministry will carry out a comprehensive study on the petrochemical industry, Nasir said:
"Firstly the State Government in collaboration with Petronas will conduct a study and evaluation on the gas resources to determine the quantity, quality and suitability of its usage in the development of petrochemical industry."
" If the result from this study shows that petrochemical has the competitive edge to be developed, then the State Government will take the next step that is identifying the types of petrochemical products having the competitive edge to be developed commercially."
"It can become a strong foundation for the State Government to attract more local and foreign direct investment into the petrochemical industry in Sabah."
Nasir said after all aspects have been identified and considered then the Government would make plan on the physical development of the Integrated Petrochemical Complex (IPC).
He said it would be complete with the needed infrastructure and facilities for supporting the development of the State petrochemical industry, besides assisting in finding effective ways to attract investors into the industry.
To ensure the success of this project, a site suitability study at the area proposed for the construction of the IPC complex so that it will have the competitive advantage in all aspects including in terms of the investment and operational costs.
Nasir said the development of the IPC would give vast opportunities to the entrepreneurs in Sabah to venture into petrochemical industrial-based activities and using the latest modern technology.
Considering that it is a capital and technology intensive-typed of industry, he said the development of this industry would open new opportunities for the local entrepreneurs to form joint venture with the related national and international companies.
Petronas has also formed a collaboration with several vocational training institutes in Sabah (Pusat Giat Mara, Institut Latihan Perindustrian and Institut Kemahiran Mara) to train the local people in relevant fields (maintenance of industrial, wielding as well as installation of gas pipeline). Nasir said the petrochemical industry was capable to contribute to the development of local Bumiputera industrial and trading community besides generate more employment opportunities for skilled and semi-skilled locals.
