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Shanghai may spend $15b on Disneyland project

By Gao Yuan (chinadaily.com.cn)
Updated: 2011-01-06 15:23
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The construction of Shanghai Disneyland project and the international tourist resort is likely to cost the municipal government more than 100 billion yuan ($15.1 billion), higher than the expense of last year's World Expo, 21st Century Business Herald reported Wednesday, citing internal government files.

According to the report, it will cost about 25 billion yuan to build the new theme park's core area, and another 40 billion yuan to finish affiliated facilities. Most of these expenses will be paid by the Shanghai government, the newspaper said.

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The entire project will cover up to 107.1 square kilometers, with 7 square kilometers taking up the core area, 13.6 square kilometers for affiliated facilities and 86.5 square kilometers for control areas, the report said.

The government is expected to spend more than 100 billion yuan on the project, said an estimate from Pudong district's internal file, it reported.

Last year's Shanghai World Expo cost the government about 28.6 billion yuan, according to official figures reported by Xinhua News Agency in March 2010.

"Affiliated facilities, including a commercial hotel, are set to be finished before the park opens in 2015," said Xu Lin, who heads the Pudong New Area district.

"It's one of our major works during the 12th Five-Year Plan (2011-2015)," Xu added.

Major construction work will begin in May, and affiliated facilities are scheduled to be done by June 2014, the report said.

In addition, apart from government investments, overseas capital and some domestic companies are eyeing deals for the park's affiliated projects as well, the report said.

A Japanese company, which is in charge of Tokyo Disneyland's operations, is contacting the Walt Disney Co in the US, trying to obtain an operation deal for the park, the report said.