The Hong Kong Airport Authority (AA) won approval from the
central government on Wednesday to take a strong foothold on the
Chinese mainland by jointly managing Zhuhai Airport with local
government for a period of 20 years.
It's the first time China has permitted overseas personnel to
participate in the management of an airport on the Chinese
mainland.
The agreement between the State-owned Assets Supervision and
Administration Commission of Zhuhai city and the AA to jointly
operate Zhuhai Airport was announced by the Hong Kong/Guangdong
Cooperation Joint Conference held in the province's capital of
Guangzhou.?
The AA will establish a new joint venture to be known as the
Zhuhai-Hong Kong Airport Management Company Ltd. to manage and
operate the Zhuhai Airport for 20 years, according to an AA press
release.
The joint venture with a registered capital of 360 million yuan
(US$45 million) will pay a franchise fee for the exclusive
operational rights, said the release. But it did not reveal what
the franchise payment was.
According to the agreement the AA holds the joint venture's 55
percent stake which it acquired for 198 million yuan (US$24.75
million) through its wholly owned subsidiary HKIA (China) Ltd.
The joint venture's remaining shares will be held by the
State-owned Assets Supervision and Administration Commission of
Zhuhai city government through an injection of 162 million yuan
(US$20.25 million) from its wholly owned company Zhuhai Headway
Transportation Investment Co. Ltd.
The joint venture's two parent companies will discuss the timing
and details of share acquisition for the project, said the press
release.
The joint venture's management will be based on the existing
team and working closely with them will expand Zhuhai Airport's
domestic network, strengthen and diversify its air services,
improve the airport's accessibility and maximize the synergy
between the Zhuhai and Hong Kong airports.
Deng Weilong, Secretary of Zhuhai city committee of the
Communist Party of China (CPC), said the deal was of profound
significance. He said the cooperation between the two airports, the
soon-to-be-built Hong Kong-Zhuhai-Macao Bridge and other
infrastructure projects in Zhuhai would accelerate the development
of the western Pearl River Delta.
Victor Fung Kwok-king, AA Chairman, said the cooperation between
HKIA and Pearl River Delta airports showcased Hong Kong's ability
to work with the Chinese mainland to achieve much.?
Zhuhai Airport is located in Zhuhai Special Economic Zone in the
western Pearl River Delta where growth potential abounds. Zhuhai's
gross domestic product grew at a compound annual average rate of
13.4 percent between 2001 and 2004. ?
(Xinhua News Agency August 3, 2006)