THE federal government has announced extra funding for the Industry Capability Network to help Australian businesses win supply contracts on major resources projects such as the Browse LNG development.
Speaking at Hofmann Engineering in Bassendean last week, Prime Minister Julia Gillard said the government would contribute an extra $1.2 million to ICN offices in Western Australia, South Australia, Queensland and the Northern Territory.
This followed a similar funding announcement in August, when the government said it would provide $1.2 million to ICN offices in WA, NT, NSW and Victoria.
The latest funding will be used to target supply opportunities on four upcoming projects:
• Woodside’s proposed Browse LNG project in WA;
• INPEX’s proposed $25 billion Ichthys LNG project in the NT;
• BHP Billiton’s proposed Olympic Dam mine in SA; and
• LNG projects in the Gladstone area of Queensland with a combined value of $50 billion that have reached final investment decision.
In 2010-11 the ICN helped Australian companies secure more than 150 contracts valued at $750 million, the government said.
The ICN office in WA has been awarded $382,300. This grant will target opportunities for Australian industry to access ‘tier 2’ opportunities in the Browse project.
As well as linking Australian businesses to work packages, this project will look for opportunities for overseas manufacturers of leading technologies to enter into joint ventures with Australian companies.
ICN WA manager Linus O’Brien said the funding was a big recognition of the work it is doing with local businesses to help them access the major projects and bid for contracts where they have the capacity.
“ICNWA has already begun the work of communicating with the proponents to look at the opportunities available for local companies,” he said. “In particular, ICNWA will be looking to assist local businesses with partnership arrangements with other overseas companies.
“This collaboration with other companies is something we are likely to see more often to increase the chances of success, and also present the best competitive tender to secure work.”