Shanghai is still strongly leaning towards building a Disney theme park, government sources say, and construction could begin in 2010 if negotiations proceed well.

"The Shanghai municipal government has set up a special team with the United States-based Walt Disney Co that will study a theme park plan,'' said Li Wei, a spokesman for the Shanghai municipal government.

"Once the team reach a consensus on relevant requirements, the Shanghai municipal government will formally raise the theme park plan to the central government for approval,'' Li said.

The office also revealed the Shanghai municipal government will invite staff members involved in the current design and construction of the Hong Kong Disney theme park to join the project.

Walt Disney Co could not be reached for comment yesterday, but a Hong Kong-based Disney spokeswoman, Irene Chan, told local media early the company has so far focused its attention on the Hong Kong park due to open in 2005.

Chan admitted there is a possibility of a second theme park in China. The Hong Kong park will cost around US$3 billion and hopefully attract 5.6 million visitors in its first year.

Shanghai has been in contact with Disney to build a theme park in its Pudong District since the late 1990s.

Local media reported last July that city officials had signed a non-binding letter of intent on a Disney park project.

A park would be located in western part of Chuansha Town in the city's Pudong District,media reports have said.

But the government and Disney have denied the reports.

Zhu Qing, an official with the Chuansha local government said yesterday the 660 hectare of land in the western part of the town is still undeveloped and restricted to ordinary businesses.

"We have no right to approve the land, even the (Pudong) district government has no right to deal with it,'' said Zhu. "Unless it is a super large project, the land will not be used.''

According to Zhu, the town has been very short of land for industrial uses.

Shanghai, the country's major economic powerhouse located in the prospering Yangtze River Delta, is nonetheless determined to build theme parks.

Last year, the city clinched a deal with the US-based Universal Studios, to build a theme park in Sanlin area in Pudong, adjacent to the site of Shanghai World Expo 2010.

The park, with its first phase covering an area of 0.85 square kilometres, is due to formally open in 2006.

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