KUALA TERENGGANU, Sept 27 (Bernama) -- TH Estates Holdings Sdn Bhd (THEstates), a wholly-owned subsidiary of Lembaga Tabung Haji and Jasa BaktiSdn Bhd Monday signed a joint-venture agreement, which will see TH Estatesinjecting RM11.9 million capital to develop an oil palm estate in thestate.

Under the agreement, both companies had agreed to form a joint venturecompany, TH Bakti Sdn Bhd, with a paid-up capital of RM17 million todevelop a 1,178-hectare area in Dungun.

TH Estates, with a 70 percent stake would inject a capital of RM11.9million in stages while Jasa Bakti, which owns the remaining 30 percentshare based on the land value RM6.1 million.

Minister in the Prime Minister's Department, Datuk Dr Abdullah Md Zain,said that the development and implementation of the project would bemanaged by TH Plantation Sdn Bhd, another wholly-owned subsidiary ofTabung Haji.

"This estate project, which is regarded as having a very profitablebusiness prospect is expected to commence by the end of the year and fullycompleted a year later.

"The RM11.9 million project is expected to bear fruits in 2008," he saidwhen speaking at the signing, which was also attended by TerengganuMenteri Besar, Datuk Seri Idris Jusoh.

At the signing, TH Estates was represented by Tabung Haji Group ManagingDirector and Chief Executive Officer, Datuk Mohd Bakke Salleh while JasaBakti was represented by its chairman, Datuk Wan Zakaria Abdul Rahman.

The signing was witnessed by Idris and Tabung Haji Chairman, Tan SriZainol Mahmood.

At the function, Dr Abdullah also handed over zakat for fiscal year 2003on behalf of Tabung Haji subsidiaries in the state amounting to RM250,000to the Terengganu Islamic Religious and Malay Custom Council (Maidam).

Dr Abdullah said that oil palm cultivation carried out presently by TabungHaji comprised a total area of 56,000 hectares in Malaysia and 82,000hectares in Riau, Indonesia.

He said that the joint-venture project in Terengganu would enable TabungHaji to expand the palm oil cultivation activities in the state, providejob opportunities and generate returns to stakeholders through thebusiness zakat payment by Tabung Haji.

"Tabung Haji does not only manages the haj pilgrimage well but the agencyis also constantly thinking of the best methods to serve and give maximumreturns to depositors (of the pilgrimage fund).

Tabung Haji is always taking steps to compete in looking for investmentopportunities to increase the returns, he said.

Meanwhile, Idris in his speech said that the state government was verysatisfied with the swift action taken by Tabung Haji to invest in thestate.

He said that the project was the result of discussions over a month agobut was promptly implemented.

"The state government has always been supportive and fully cooperates withTabung Haji to make the oil palm cultivation a success," he said.

Idris said that the state government also plans to make the Sultan MahmoodAirport here into one for pilgrims in the East Coast after its expansion.

He said that the state government would hold discussions with Tabung Hajion the matter as Terengganu is a strategic state for that purpose.

-- BERNAMA