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

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EPP 1 : AGROPOLITAN (KEMABONG & BELURAN PROJECT) PALM OIL SECTOR Key outcomes of the EPP What needs to be done? Key Challenges Mitigation Plan 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 Lack of basic infrastructure and public amenities such as access road, water & electricity 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 How The Concept Works The Agropolitan Concept Developer will provide amenities to villagers Improved living standards for villagers! Cash crop is also introduced to improve income Villagers taught how to work at plantations Hardcore poor relocated to new village SETTLEMENT AREA COMMUNITY ECONOMY ZONE (CEZ) MAIN AGRI ZONE / MAJOR CROPS DESCRIPTION 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 • 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) Palm Oil Mill PROCESSING PLANT Community Crops (Cash Crops) (Village Cooperative) Herbs & Spices Fruits & Vegetables Livestock & Poultry Aquaculture Paddy (Food Security) Other Activities PASAR BORONG DESCRIPTION • 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 WORM CAST (FERTILIZER) UTILITIES Water, Electricity (3.5MW) • 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 NEW VILLAGE Integrated Cattle Farming Under OP ACCOMMODATION SCHOOL CLINIC METHANE BURNER SOLID FUEL BENEFICIARIES Land Owner 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, 19th January 2011 Hardcore Poor Poor Vulnerable Poor DESCRIPTION To eradicate poverty and improve income To create new job opportunities To accelerate the regional economic growth and bridge the urban-rural disparity in development and in terms of accessibility and services Kemabong Beluran Area (ha) 2555 8300 Oil Palm (ha) 1000 4000 Rubber (ha) 1000 Economic Community Zone 100 200 Profit Sharing 60:40 KEMABONG BELURAN

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

Page 1: EPP 1 : AGROPOLITAN (KEMABONG & BELURAN PROJECT)EPP 1 : AGROPOLITAN (KEMABONG & BELURAN PROJECT) PALM OIL SECTOR Key outcomes of the EPP What needs to be done? Key Challenges Mitigation

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

Page 2: EPP 1 : AGROPOLITAN (KEMABONG & BELURAN PROJECT)EPP 1 : AGROPOLITAN (KEMABONG & BELURAN PROJECT) PALM OIL SECTOR Key outcomes of the EPP What needs to be done? Key Challenges Mitigation

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