Funding to help local firms win contracts

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, 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
• LNG projects in the Gladstone area of Queensland with a combined value of $50 billion, that have reached final investment decision.

The government said that in 2010-11, the ICN helped Australian companies secure more than 150 contracts valued at $750 million.

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.