The Hong Kong Airport Authorityplans to take a stake in ZhuhaiAirport after signing a joint-venturemanagement deal, aiming to capitaliseon emerging demand in the westernarea of the Pearl River Delta for hightechnologycargoes, the Standard reported,citing senior officials at ZhuhaiAirport.
"We will finish the valuation workon the airport’s assets in the comingsix months," chairman Du Zhuo said.Zhuhai Airport has been plagued by ashortage of capital and managementinefficiencies over the past decade.
The city government decided in2002 to invite foreign investors in toimprove airport operations and profit.Du was quoted by the South China MorningPost as saying that: "We are willing to offer as much as 49 percent to Hong Kong – it’s up to them to decide."
The Airport Authority, which signedthe joint-venture agreement last yearsaid it will take a controlling 55 percentstake in the joint venture with theZhuhai municipal government. Thenew company will pay 250 million yuanup front for the 20-year managementfranchise of the airport on the westernside of the Pearl River. The airport,which handled 8,000 tonnes of cargolast year, plans to increase its total cargothroughput to 50,000 tonnes by 2010.