The isolated island of Guanzhou, situated on the Pearl River near this capital of south China's Guangdong Province, will be home to a bio-engineering research base for developing gene-modified medicine and products and trans-genetic plants and animals.

The municipal government of Guangzhou has approved Guanzhou New Oasis Bio-Technological Co. to be the developer of the project, which should be completed in the next two or three years.

The development cost for the base is estimated at some 10 billion yuan (about 1.2 billion US dollars), which is expected to come from the domestic and international capital markets and outside investment.

The government will work out preferential policies for attracting investment instead of allocating direct funding.

Guanzhou Island, covering 1.8 sq. km., is a safe distance from industrial pollution coming from the province. Several major universities in Guangzhou will base their research labs on the island when the basic infrastructure construction is completed.

Guangzhou is China's third largest biotechnology industrial center following Beijing and Shanghai. The industry has witnessed slow growth in recent years because of redistributed research powers into over 30 universities and research institutes, said the Deputy Mayor Lin Yuanhe.

The Guanzhou Island Project will help integrate these research teams and accelerate the transfer of scientific results into final products, he said.

Some foreign genes engineering research institutes and related companies have expressed their interest in setting up research offices on the island.

The development plan for the island has been entrusted to Guangzhou Municipal Urban Planning Institute. It will invite renowned experts from an American bioengineering project planning company and Tokyo University to join in the design process. (Xinhua)