The isolated island situated on the Pearl River near Guangzhou, capital of South China's Guangdong Province, will be home to a bio-engineering research base for developing gene-modified medicine and products, as well as trans-genetic plants and animals, according to report of China Daily on December 7.

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 two or three years.

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

The 1.8-square-kilometer island is safe from industrial pollution coming from the surrounding areas. 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.