The Airport Authority of Hong Kong is close to signing a deal to lease Zhuhai Airport in Guangdong Province.

"We have made remarkable progress and now there are only some minor details to work on," said a Hong Kong Airport Authority spokeswoman, who would only be identified by her surname Lam, yesterday.

Lam refused to give more details on the progress or what remains to be negotiated. She said the final result will be announced soon.

Xu Xiaoxing, an official with the Zhuhai Airport's media section, refused to comment on the report. Xu only said it was not yet time to publicize anything.

The proposed deal to lease the underutilized airport for 20 years gained approval from mainland regulators early this year. The Guangdong provincial government gave it the green light in July 2005.

A joint venture with a company in Zhuhai will lease the airport for about 200 million yuan (US$25 million) to 300 million yuan annually, the China Business Times reported.

The joint venture is 55 percent held by the Airport Authority of Hong Kong and 45 percent by Zhuhai Headway Transportation Investment Co Ltd, a subsidiary of the city's state-owned assets management commission.

According to the proposal, the Airport Authority of Hong Kong plans to take a controlling stake in Zhuhai Airport after 20 years. Zhuhai's loss-making airport opened in 1995. It cost 4 billion yuan. The venture will also raise about 400 million yuan in credit to fund operations.