Sarawak Energy Lowers Contract Performance Bonds To Maximise Local Content & Participation At "Contractors Briefing - Creating Opportunities In Sarawak Energy"

KUCHING, 13 APRIL 2018, FRIDAY: About 350 local and Bumiputera contractors attended Sarawak Energy’s “Contractors Briefing – Creating Opportunities in Sarawak Energy”, held Wednesday to Thursday to encourage and support local and Bumiputera participation in the State-owned energy development group and integrated power utility’s contract and procurement activities.

At the event, the contractors received the welcome announcement that performance bond and retention sums would be reduced from 10% to 5% respectively, resulting in a reduction in maximum exposure of 10% for both subjects, down from 20% previously.  Local contractors may also opt to build up their performance bond through staggered payments by way of deduction from interim payments.

This follows the well-received initiative rolled out in 2017 where bid bonds for Sarawakian tenderers were also waived.

“Sarawak Energy is wholly government owned and we have a strong sense of responsibility to ensure that we are aligned with the State government’s vision to maximise local and Bumiputera participation in Sarawak Energy’s procurement and contract activities. We have formulated and are implementing an overall plan to ensure that our current and potential contractors are fully aware of the opportunities and incentives available. The objective of these new initiatives is to expand the pool of qualified local contractors that can participate in our projects,” said Sharbini Suhaili, Group Chief Executive Officer at the launch of the two-day event.

Sarawak Energy’s contractor community number some 340 confirmed registrations – about 80% of whom are local Sarawakian, and is aiming to grow this number through various initiatives to encourage and support local and Bumiputera participation and to expand the pool of qualified local contractors that can participate in Sarawak Energy’s projects.  Contractors who attended the briefing also received 20 Construction Industry Development Board (CIDB) points each, which will go towards the points required for them to renew their CIDB memberships.

Sharbini added that contractors with an established track record of safety, environmental compliance and management, and timely project delivery with high standards will have a distinct advantage in participating in Sarawak Energy’s procurement and contract activities.

“As Sarawak Energy grows and transforms, we are benchmarking ourselves against the best-in-class utilities and multi-national corporations regionally and internationally,” he said in explaining the corporation’s push for continuous improvement both for itself and for its contractors.

He further added that Sarawak Energy wants to conduct its business with the highest level of integrity and asked the contractors present to report any instances of deviations directly to the company.

Sarawak Energy established a division to oversee Bumiputera participation in 2014, setting up a special committee at Board level called the Bumiputera Participation Board Committee (BPBC) a year later.

Also in attendance were members of Sarawak Energy senior management team and representatives from BPBC, Dato Abang Jemat Abang Bujang, Dr Simon Sinang Bada, Allan Keripin Nangkai and Stell Sindau.

The BPBC is represented by the Ministry of Industrial & Entrepreneur Development, Trade and Investment Sarawak (MIETI Sarawak), Sarawak Bumiputera Chamber of Commerce (DUBS), Dayak Chamber of Commerce and Industry and the Professional and Entrepreneurial Group.

Sharbini (9th from left) posing for a photograph with Sarawak Energy senior management, representatives from BPBC, and contractors who are awarded tenders for transmission lines and substations, and rural electrification.

Sharbini (center) with the contractors who attended the briefing.