The Hong Kong Special Administrative Region (HKSAR) reached a deal with Walt Disney Co. on building a theme park in the region, HKSAR Chief Executive Tung Chee Hwa announced on November 2.

The Hong Kong government and Walt Disney Co. would form a joint venture to build a world-class international theme park, a 400- room Disney themed resort hotel complex and a retail, dining and entertainment center at Penny's Bay on Lantau Island, Tung announced at a news briefing.

The Hong Kong government's total investment, including equity, loans and infrastructure expenditure, will be 22.45 billion HK dollars (2.88 billion US dollars), he said.

The Hong Kong government will hold 57 percent of the shares in the company, while initially the Walt Disney Co. will hold 43 percent under the deal.

The project will inject energy into Hong Kong's economic development, make Hong Kong a tourism attraction in Asia, as well as enrich Hong Kong people's cultural life, Tung said.

He said the project would produce an estimated 148-billion-HK- dollar (18.97 billion US dollars) boost to the HK economy over a 40-year period. "We think that is a pretty good return on our investment," he said.

Attendance of over 5 million is expected in the park's first year of operation, rising to 10 million annually after about 15 years.

The massive theme park project would create 6,000 jobs during the construction phase and some 10,000 new jobs are expected to be created by the land reclamation and other associated works being funded by the Hong Kong government.

Hong Kong Disneyland will generate 18,400 jobs at opening and up to 35,800 new jobs over a 20-year period.