EPP 1 : AGROPOLITAN (KEMABONG & BELURAN PROJECT)EPP 1 : AGROPOLITAN (KEMABONG & BELURAN...

EPP 1 : AGROPOLITAN (KEMABONG & BELURAN PROJECT)

PALM OIL SECTOR

Key outcomes of the EPP What needs to be done? Key Challenges Mitigation Plan• Contributestothesustainabilityofsupplyfor

bothPalmOilFreshFruitBunches(FFB)aswellasRubberLatex

• Creationofjobopportunitiesandsmallscalebusinessesforthelocalcommunity

• Reductioninpovertyasthetargetparticipantswillbeabletobenefitsubstantiallyfromtheprogramme

• Establishmentofnewtownship

• Toprovidebasicinfrastructureandpublicamenitiesinthearea(Accessroad,water&electricity)

• CommunityEconomicProgramme(CEP)suchasplantingofcashcropandothereconomicactivitiestobedesignedfortheproject

• Lackofbasicinfrastructureandpublicamenitiessuchasaccessroad,water&electricity

• Toconstructanaccessroadtotheprojectareawhichisofapproximately25kminlengthfromSapi-Nangohmainroad–AgropolitanBeluran

• Toconstructanaccessroadtotheprojectareawhichisofapproximately10kminlengthfromSFIroadjunction–AgropolitanKemabong

How The Concept Works

The Agropolitan Concept

Developerwillprovideamenitiestovillagers

Improved living standards for

villagers!

Cashcropisalsointroducedtoimproveincome

Villagerstaughthowtoworkatplantations

Hardcorepoorrelocatedtonewvillage

SETTLEMENT AREA

COMMUNITY ECONOMY ZONE (CEZ)

MAIN AGRI ZONE / MAJOR CROPS

DESCRIPTION

DESCRIPTION• Anareaset

asidetoprovideaccommodationwithbasicamenitiessuchaswater,electricity,telecommunicationservices,schoolsandhealthcentrefortheprojectbeneficiaries

• Areadesignatedforthecommunitytoundertakesupplementaryagricultureandnon-agricultureeconomicactivitiesinamoderatetolargescaletogenerateadditionalincomeprojects

• CEZisaflexi-useareathatthecommunitycanusetouplifttheireconomicwellbeingandqualityoflife

• CEZwillbemanagedandregulatedbythecommunityitselfwiththeassistanceoftheSpecialPurposeVehicle(SPV)

Palm Oil Mill

PROCESSING PLANT

Community Crops (Cash Crops)(Village Cooperative)

• Herbs&Spices• Fruits&Vegetables• Livestock&Poultry• Aquaculture• Paddy(FoodSecurity)• OtherActivities

PASAR BORONG

DESCRIPTION• Commercialandlargescaleplantationservesasacrop-based

agriculturenexusforthecommunity• Providesdirectjob,incomeandbusinessopportunitiesto

beneficiariesoftheproject

WATER TREATMENT

PLANT

WORM CAST (FERTILIZER)

UTILITIES Water,Electricity(3.5MW)

• WillbemanagedbySabahLandDevelopmentBerhad(SLDB)

• Anewpalmoilmillwillbeconstructedintheprojectarea.• SLDBwillcallfortendertoundertakeanyworkrelatedto

oilpalmplantation• FFBwillbesenttonearestmill• Paymenttobeneficiarieswillbemadeafterdeductionof

operationanddevelopmentcostsaswellasotherrelatedexpenses

• SLDBwillprovidethebasicinfrastructuresuchaswater&electricitysupplyforofficebuilding,staffquartersandplantationworkershousing

NEW VILLAGE

Integrated Cattle Farming Under OP

ACCOMMODATION

SCHOOL CLINIC

METHANE BURNER

SOLID FUEL

BENEFICIARIES• LandOwner• PPRT

392

1,667

69

534

949

105

Kemabong Beluran

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Source:eKasih,19thJanuary2011

HardcorePoor Poor VulnerablePoor

DESCRIPTION

Toeradicatepovertyandimproveincome

Tocreatenewjobopportunities

Toacceleratetheregionaleconomicgrowthandbridgetheurban-ruraldisparityindevelopmentandintermsofaccessibilityandservices

Kemabong Beluran

Area(ha) 2555 8300OilPalm(ha) 1000 4000Rubber(ha) 1000EconomicCommunityZone

100 200

ProfitSharing 60:40

KEMABONG

BELURAN

EPP 2 : POIC (LAHAD DATU AND SANDAKAN PROJECT)

Key outcomes of the EPP What needs to be done?• Increasehighervalue-addingactivitiesofSabahpalmoil

sectoraswellasgreaterinvestmentandemploymentopportunitiesfortheStateandpeople

• Reductioninrelianceoftheupstream(plantation)sectortospearheadthedevelopmentofthepalmoilindustry

• Greatermarketpotential(i.e.BIMP-EAGA,greaterconnectivitywiththeregionalmarketsofChina,Taiwan,Singapore,etc)

• ProvisionofcompetitiveinfrastructurefacilitieswouldmakeitpossiblefortheEPPtobesuccessfulandimplemented.Assuch,itisbothtimelyandpertinentfortheGovernmenttoallocateadequateamountoffundsfortheconstructionofthesefacilities

Key Challenges Mitigation Plan• Lackofbasicandmodernsupportinfrastructure

facilitiestoattractinvestorsandinitiatefasterbusinessstart-ups(Mostcritical)

• HighcostsofdoingbusinessinSabah• Difficultyordelaytogetapprovaloflicenses• Lackofskilledworkerstocaterfortherequirementof

palmoildownstreamindustries

• Constructionofacontainercapablejetty(highimpact/highpriority)–POICLahadDatu

• Constructionofaconnectiongridtosupplypowerforthecluster–POICSandakan

• Improvehinterlandinfrastructures• Setting-upofaonestopagencytoapprovelicenses• Synchronizingthesupplyanddemandbetweentraining

institutionsandindustryplayers

Palm-Based Oleo Chemicals

Producers

Bio-Mass Producers Palm Oil Refineries

AGGLOMERATION OF INDUSTRIAL ACTIVITIES

Infrastructure and Utilities

Bio-Fertilizer Producers

Road

Jetty

Electricity

WaterStorageTanks

PipeRackExpectedCompletionbyMay2012

BulkFertilizerTerminalExpectedCompletionbyMay2012

PALM OIL SECTOR