EPP1 - SEDIA

PALM OIL SECTOR
EPP 1 : AGROPOLITAN (KEMABONG
& BELURAN PROJECT)
DESCRIPTION
To eradicate poverty and improve income
BELURAN
Hardcore Poor
To create new job opportunities
1,800
To accelerate the regional economic growth and
bridge the urban-rural disparity in development
and in terms of accessibility and services
1,400
Poor
1,667
1,600
1,200
949
1,000
Area (ha)
Oil Palm (ha)
Rubber (ha)
Economic
Community
Zone
Profit Sharing
KEMABONG
Vulnerable Poor
Kemabong
Beluran
2555
1000
1000
8300
4000
100
200
800
534
600
392
400
200
105
0
69
Kemabong
60:40
Beluran
Source : eKasih, 19th January 2011
The Agropolitan Concept
DESCRIPTION
• An area set
aside to provide
accommodation with
basic amenities such
as water, electricity,
telecommunication
services, schools and
health centre for the
project beneficiaries
ACCOMMODATION
BENEFICIARIES
• Land Owner
• PPRT
SCHOOL
CLINIC
NEW VILLAGE
DESCRIPTION
DESCRIPTION
• Area designated for the community to undertake
supplementary agriculture and non-agriculture economic
activities in a moderate to large scale to generate
additional income projects
• CEZ is a flexi-use area that the community can use to uplift
their economic well being and quality of life
• CEZ will be managed and regulated by the community itself
with the assistance of the Special Purpose Vehicle (SPV)
• Commercial and large scale plantation serves as a crop-based
agriculture nexus for the community
• Provides direct job, income and business opportunities to
beneficiaries of the project
WATER
TREATMENT
PLANT
COMMUNITY ECONOMY ZONE (CEZ)
Community Crops (Cash Crops)
(Village Cooperative)
•
•
•
•
•
•
SETTLEMENT AREA
Herbs & Spices
Fruits & Vegetables
Livestock & Poultry
Aquaculture
Paddy (Food Security)
Other Activities
UTILITIES
METHANE
BURNER
SOLID FUEL
Water, Electricity (3.5MW)
MAIN AGRI ZONE / MAJOR CROPS
PROCESSING PLANT
WORM CAST
(FERTILIZER)
Palm Oil Mill
Integrated Cattle Farming Under OP
PASAR BORONG
• Will be managed by Sabah Land Development Berhad
(SLDB)
• A new palm oil mill will be constructed in the project area.
• SLDB will call for tender to undertake any work related to
oil palm plantation
• FFB will be sent to nearest mill
• Payment to beneficiaries will be made after deduction of
operation and development costs as well as other related
expenses
• SLDB will provide the basic infrastructure such as water
& electricity supply for office building, staff quarters and
plantation workers housing
How The Concept Works
Hardcore poor
relocated to new
village
Villagers taught
how to work at
plantations
Cash crop is also
introduced to
improve income
Key outcomes of the EPP
What needs to be done?
• Contributes to the sustainability of supply for
both Palm Oil Fresh Fruit Bunches (FFB) as
well as Rubber Latex
• Creation of job opportunities and small scale
businesses for the local community
• Reduction in poverty as the target
participants will be able to benefit
substantially from the programme
• Establishment of new township
• To provide basic infrastructure and public
amenities in the area (Access road, water &
electricity)
• Community Economic Programme (CEP) such
as planting of cash crop and other economic
activities to be designed for the project
Developer will
provide amenities
to villagers
Key Challenges
• Lack of basic infrastructure and public
amenities such as access road, water &
electricity
Improved living
standards for
villagers!
Mitigation Plan
• To construct an access road to the project
area which is of approximately 25km in length
from Sapi-Nangoh main road – Agropolitan
Beluran
• To construct an access road to the project
area which is of approximately 10 km in
length from SFI road junction – Agropolitan
Kemabong
PALM OIL SECTOR
EPP 2 : POIC (LAHAD DATU
AND SANDAKAN PROJECT)
Infrastructure
and Utilities
Road
Palm-Based
Oleo Chemicals
Producers
Bio-Fertilizer
Producers
AGGLOMERATION
OF INDUSTRIAL
ACTIVITIES
Jetty
Electricity
Water Storage Tanks
Bio-Mass Producers
Palm Oil Refineries
Key outcomes of the EPP
What needs to be done?
• Increase higher value-adding activities of Sabah palm oil
sector as well as greater investment and employment
opportunities for the State and people
• Reduction in reliance of the upstream (plantation)
sector to spearhead the development of the palm oil
industry
• Greater market potential (i.e. BIMP-EAGA, greater
connectivity with the regional markets of China, Taiwan,
Singapore, etc)
• Provision of competitive infrastructure facilities would
make it possible for the EPP to be successful and
implemented. As such, it is both timely and pertinent for
the Government to allocate adequate amount of funds
for the construction of these facilities
Key Challenges
Mitigation Plan
• Lack of basic and modern support infrastructure
facilities to attract investors and initiate faster business
start-ups (Most critical)
• High costs of doing business in Sabah
• Difficulty or delay to get approval of licenses
• Lack of skilled workers to cater for the requirement of
palm oil downstream industries
• Construction of a container capable jetty (high impact /
high priority) – POIC Lahad Datu
• Construction of a connection grid to supply power for
the cluster – POIC Sandakan
• Improve hinterland infrastructures
• Setting-up of a one stop agency to approve licenses
• Synchronizing the supply and demand between training
institutions and industry players
Pipe Rack Expected
Completion by May 2012
Bulk Fertilizer Terminal Expected
Completion by May 2012