8/2/07 KUCHING (Bernama) - A new oil palm plantation, covering 13,000 hectares of Native Customary Rights (NCR) land, will be developed soon in Genaan Sebauh, Bintulu, with the participation of about 780 NCR landowners.

The project will be jointly developed between Pelita Holding Sdn Bhd (PHSB), a wholly owned subsidiary of Land Custody and Development Authority (LCDA) and Sarawak-based Mutiara Hartabumi Sdn Bhd.

Deputy Chief Minister Tan Sri Alfred Jabu was present to witness the signing to formalise the joint venture between PHSB and Mutiara Hartabumi here yesterday.

Mutiara Hartabumi was represented by its managing director Datuk Ibrahim Mahmud while PHSB chief executive officer Abdullah Chek Sahamat signed on behalf of the company.

Under the private sector-led NCR land development, the private sector holds 60 per cent of the equity with the remaining 40 per cent under PHSB, including the 30 per cent which it holds in trust for the NCR landowners taking part in the project through the capitalisation of their land.

At present, PHSB has a total of 23 active NCR projects currently in various stages of development with the participation of 6,725 NCR landowners.

To date PHSB, which is projected to increase its acreage by another 9,500 hectares this year, has developed a total of 34,367 hectares of NCR land.

The first NCR project that PHSB undertook jointly with the private sector and landowners was the Boustead Pelita Kanowit oil palm plantation, which has been in production since 1996.

Similar joint ventures have been undertaken with Ta Ann Holding Bhd at Silas and Double Dynasty Sdn Bhd at Sebungan covering a total area of 11,000 and 10,000 hectares respectively.

The new project adds another 13,000 hectares, bringing a total of 34,000 hectares NCR land development for Bintulu Division.

Jabu, who is also Sarawak's Rural Development Minister, later told reporters the state task force on NCR land development had approved 26 NCR projects to be earmarked for commercial oil palm plantations.

He said the NCR projects comprised 11 in southern region, eight (central region), and seven (northern region), involving a total area of about 196,000 hectares.

There are 11 NCR land areas involving 165,000 hectares already approved by the task force but these are still looking for investors while another 17 application are still pending due to verification on the land status, he added.