RM10 million worth of Value-Add generated through ICP​

Port Dickson, 12 Sept 2022 – More than RM10 million worth of value-add generated through ICP following the procurement of two units of a 1000MW ultra supercritical coal fired power plant involving ICP Provider, Toshiba Energy Systems & Solution Corporation (TESSC). The project, which was awarded to JEP by the Government of Malaysia through the Energy Commission (EC) back in 2014 was required to comply with requirements outlined in the Treasury Circular on Policy and Guidelines on Offset Programs in Government Procurement (now known as the ICP Policy).

Technology Depository Agency (TDA), the agency mandated by the Ministry of Finance (MOF) to manage, administer and monitor the implementation of Industrial Collaboration Program (ICP) was appointed to manage and administer the execution of the ICP Program.

“The responsibility mandated by the Ministry of Finance to TDA requires us to ensure the implementation of ICP is in compliance with the requirements of the policy framework,” Dr. Sharoul Jambari, Chief Executive Officer of TDA said.

ICP Program on 3B Power Plant Project consisted of technology transfer from TESSC to JEP, TNB REMACO and TNB ILSAS, in an effort to develop local expertise through simulator training at Tuanku Muhriz Power Plant. TESSC was required to facilitate the supply of the simulator, transfer of technology and knowledge, and capacity building training to local universities and training institutes. Upon signing the agreement TESSC proposed three ICP Projects with value generated of more than RM10 million that comprised all the requirements.

Tuan Haji Jamal bin Yusof, Managing Director of JEP said, “This productive collaboration fostered through ICP implementation should be replicated and continued in the future to generate a competitive industrial development, in line with the ever-changing technology advancement.”

The first ICP Project involves the supply, development, testing, and commissioning of the training simulator. The commissioning of the training simulator brought RM8 millions of cost saving in return for the investment of simulator purchase to local power plants. With the ability to produce more accurate result prediction and providing cost saving in operations, the operation and maintenance cost are forecasted to be reduced between ten to fifteen percent, amounting to approximately RM500,000 until 2023. Furthermore, the participation in local manufacturers in sourcing the hardware and associated components has increased the local content worth of RM250,000.

The second ICP Project involves technology and knowledge transfer for the development of the training simulator. This project is mainly focusing on the development of training simulators to TNB REMACO and TNB ILSAS in order to provide opportunities for local engineers, technicians, and programmers to gain knowledge and hands-on experience in setting up the hardware integration, testing, programming, maintenance, and software upgrade. With all of the training provided, it will save RM1.6 million worth of cost saving to local companies in training expenses for several disciplines in development, operational and maintenance of the simulator. Not only that, it will also reduce our dependence to foreign experts and provide a potential revenue for local training programs.

The third ICP Project consisted of human capital development that was intended for local recipients to utilize the simulator to prepare them for the power plant industry human capital development. With the utilization of the simulator, it can also be leveraged by local institutes as one of the learning tools on coal fired power plant system operation and control systems. With this initiative in the pipeline, it can reduce approximately 57% training cost as compared to overseas training and shorten the learning process for each personnel by six months.

Deputy Secretary General (Management) Ministry of Finance (MOF), Datin Rashidah bt Mohd Sies in her officiating speech has said, “MOF supports the aspiration of ICP Policy and Guidelines implementation to ensure the added-value for every expenditure utilized through government procurement will be able to develop local industry, increase technical capabilities, and accelerate technology adoption and further reduce our dependence to foreign resources.”

“Aligning to the aspiration of Sustainable Development Goal, ICP can be leveraged in focusing on value-added initiatives to support the circular economy and encouraging the cooperation with industry players towards adoption of sustainable and responsible production approach,” she added.

The ICP Program on 3B Power Plant Project was introduced and started in 2014 and concluded its milestones in providing value add to the procurement of the ultra-supercritical coal fired power plant. The closing ceremony was officiated by the Deputy Secretary General (Management), Ministry of Finance, Datin Rashidah bt Mohd Sies and attended by representatives from TDA, JEP, TESSC, TNB REMACO, TNB ILSAS, Politeknik Port Dickson among others.