Milestone moment: Financial Secretary Henry Tang (centre) presides at the joint venture signing ceremony for building a new convention centre.

The Government, Airport Authority and a consortium led by Dragages et Travaux Publics (HK) have entered into a joint venture for the design, construction and operation of a new international exhibition centre at HK International Airport. Its soft opening will be held by 2006.

Financial Secretary Henry Tang said the new centre represented a significant milestone for the continued growth of Hong Kong's exhibition industry and our existing world-class facilities at the Convention & Exhibition Centre in Wan Chai.

"This combination will ensure that Hong Kong remains competitive in capturing the growing exhibition market in the region, has sufficient quality facilities to stage a wide range of exhibitions, and is unrivalled in its ability to accommodate large events," Mr Tang said.

"It will definitely take our convention and exhibition business to a new level and consolidate our position as the convention and exhibition hub of the Asia-Pacific region."

"I believe that the centre will bring significant economic benefits to Hong Kong. A vibrant convention and exhibition industry in Hong Kong will contribute to strengthening our position as a trade fair capital and help attract more overseas visitors," Mr Tang said.

The Government will be investing $2 billion in the project, which is expected to generate economic benefits of more than $10 billion over 25 years.

The new centre, with a first phase of 66,000 square metres of exhibition space on one level, will have the largest column-free exhibition halls in Hong Kong.

Its soft opening will take place by the end of 2005 while the phase 1 development will be completed for full operation in the first quarter of 2006.

It will be capable of further expansion to 100,000 square metres of exhibition space in response to market demand.

According to the joint venture agreement, the Government and the consortium will fund the construction costs, while the Airport Authority will contribute the land, in exchange for equity stakes in the joint venture.

The construction cost of the first phase development is estimated to be about $2.3 billion.

Construction of the new centre will bring about 2,000 jobs. While in operation, it will directly employ about 150 staff, and indirectly about 800 staff. Many more employment opportunities will also be created in support of the activities held at the new centre and through tourism.

Director-General of Investment Promotion Mike Rowse said Hong Kong clearly needs an additional facility to handle the Convention Centre's overflow, and to accommodate events which may have particular floor loading and configuration requirements.

"HK is the premier location for international exhibitions in the region, Asia's world city and the best business location in the Asia-Pacific," he said.

"The new centre will enable Hong Kong to host a greater number and a wider range of exhibitions to reinforce Hong Kong's position as an international business centre and trade fair capital," Mr Rowse added.

Speaking after the signing ceremony, Airport Authority chief executive officer David Pang said the centre will be a key component of leveraging the airport as the cornerstone of a multi-faceted and aviation-based business hub.

"The centre would be able to take advantage of the fact that the airport has connections to more than 140 cities world-wide on some 75 airlines. In addition, Hong Kong allows visa-free entry from a majority of those connections, which is another tremendous plus for an exhibition centre that can offer maximum convenience and accessibility to its customers," he said.

Dragages Managing Director Luc Messier said the consortium was delighted to have entered into the joint venture agreement with the Government and Airport Authority to develop the world-class exhibition facility.

"The large, open exhibition space on one floor will make it a perfect venue for trade and public exhibitions of all types, from consumer trade fairs to industrial fairs, and will also attract large public shows and entertainment events, thanks to its multi-purpose hall which can accommodate up to 13,500 moveable seats."