Thumbs up for industrial park

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SIP creates 11,679 jobs, attracts RM21.19 billion in investment, says AG’s report

KUCHING: Samalaju Industrial Park (SIP) has attracted investment totalling RM21.19 billion through 11 projects approved by the Malaysian Investment Development Authority (MIDA) and created 11,679 job opportunities.

The figures were revealed in Auditor-General (AG) 2012 report released yesterday based on an audit conducted from September to November last year.

The report also graded the overall project management of SIP as satisfactory.

However, the report revealed that there were several weaknesses, one of which was the failure to complete projects on schedule.

The others are poor work quality, improper management of procurement and the failure to complete the infrastructure development in the industrial park.

As such the AG stressed that to improve the implementation of the SIP project, the Regional Corridor of Development
Authority (Recoda) and Bintulu Development Authority (BDA) should enhance collaboration in order to improve the performance of appointed consultants and contractors thus overcome the issue of delay and work quality.

“Recoda and BDA should prioritise securing funding for development of basic infrastructure and utilities,” says Auditor General Tan Sri Ambrin Buang in his report.

Touching on the disposal of industrial scheduled wastes the report urged the authorities to put in place long term plans to deal with the matter.

SIP is located 60 km from Bintulu Town with an area of 8,000 hectares.

The SIP basic infrastructure development is divided into five phases from the year 2008 to 2020.

By the year 2020, the project is expected to generate Gross National Income of RM47.9 billion, providing 22,789 job opportunities, attracting private investment amounting to RM102.6 billion and RM7.92 billion in public investment.

As of Dec 2012, BDA has spent a total of RM214.78 million or 91.5 per cent of RM234.81 million received from the federal government through Recoda.

Among the expenditures incurred were payments for land compensation, consultations, surveying and contract works.