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United States : Sarawak Energy Inks MoU with Bank Islam and SJPP to ProvidE Financing Solutions
Publish Date : 11-Nov-2019
Sarawak Energy recently entered into a Memorandum of Understanding (MoU) with Bank Islam and Syarikat Jaminan Pembiayaan Perniagaan (SJPP), a wholly-owned agency of the Ministry of Finance, to provide financing solutions for local contractors under the energy developer and power utilitys Vendor Financing Programme.
The tri-party MoU will focus on strengthening local contractors financial capacity by providing better access to financing facilities. Financial support from Bank Islam will improve contractors working capital and cash flow for more to be eligible to participate in the procurement of Sarawak Energys infrastructure development projects. Group Chief Operating Officer Lu Yew Hung signed on behalf of Sarawak Energy while Head of Commercial Banking Ahmad Haliman Abdul Halim signed on behalf of Bank Islam. SJPP was represented by its General Manager Azlan Mohd Agel.
The signing ceremony was witnessed by Bank Islam East Malaysia Regional Head Abdul Malek Abdullah, SJPPs General Manager Juanita Rusmini Abdul Jalil, while Sarawak Energy was represented Senior Vice President for Contracts and Procurement Haji Sulaiman Abdul Hamid; General Manager for Legal, Stephanie Gae Chin, and other members of senior management. The collaboration will leverage on SJPPs Government Guaranteed Schemes to provide credit guarantee to eligible contractors who require an alternative solution to meet the collateral requirement.
With the facilities in place to reduce their financial burden, more SMEs will have the opportunities to tender for larger-scale projects, Sarawak Energys Chief Operating Officer Lu Yew Hung said during the signing, adding that contractors strong financial standing is a crucial consideration factor during procurement assessments. He also shared, Since the rollout of the financial facilities two months ago, two of our contractors have been granted the facilities. Acknowledging the significance of the collaboration, Bank Islams Head of Commercial Banking Ahmad Haliman Abdul Halim said that the Bank is proud to partner with Sarawak Energy and SJPP to provide innovative financing solutions to assist contractors in meeting their project delivery timeline.
In supporting Sarawak Energys Vendor Financing Programme, Bank Islam has allocated RM300 million under this program to assist vendors with small contracts to gain access to financing that will help them execute projects awarded by Sarawak Energy or its subsidiaries according to schedules, Ahmad added. Bank Islam and SJPP also expressed their excitement to help SMEs bridge their funding and collateral gaps, in support of Sarawak Energys initiatives to encourage more local participation in the integrated power utilitys contract and procurement activities.
