SEB: Performance bond, retention sums reduced to encourage local participation

Sharbini (ninth left poses for a photo-call with SEB senior management, representatives from BPBC, and contractors who were awarded tenders for transmission lines and substations, and rural electrification.

KUCHING, April 13: Sarawak Energy Bhd (SEB) announced that performance bond and retention sums will be reduced from 10 per cent to 5 per cent respectively, resulting in a reduction in maximum exposure of 10 per cent for both subjects, down from 20 per cent 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 SEB’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, SEB’s group chief
executive officer at the launch of a two-day event titled “Contractors Briefing – Creating Opportunities in Sarawak Energy”.

The event which was held on April 11-12, saw the participation of about 350 local and Bumiputera contractors. It was organised 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 SEB 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.

SEB’s contractor community numbers some 340 confirmed registrations – about 80 per cent of whom are local Sarawakian. SEB aims 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 SEB’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.

SEB management staff with the contractors who are attending the briefing.

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 SEB’s procurement and contract activities.

“As SEB 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 SEB 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.

Also in attendance were members of SEB’s senior management team and representatives from BPBC, Dato Abang Jemat Abang Bujang, Datu Haji Wan Kassim Tuanku Zubir, Allan Keripin Nangkai and Stell Sindau.

The BPBC is represented by the Entrepreneur Development and Halal Industry Unit from the Sarawak Chief Minister’s Office, Sarawak Bumiputera Chamber of Commerce (DUBS), Dayak Chamber of Commerce and Industry, and the Professional and Entrepreneurial Group. — DayakDaily