Shanghai is preparing to build a Disneyland theme park and is awaiting central government approval, the city's mayor told the press yesterday.

His statement is the first official response from a top city leader following two years of speculation that the eastern metropolis is in talks with entertainment giant Walt Disney to build a theme park.

"We have been hoping to (build the Disney theme park) for quite a long time. Shanghai has the right conditions all the preparatory work is in the pipeline," said Han Zheng, who is attending the ongoing annual session of the National People's Congress in Beijing.

If the project is approved, it will be Disney's second theme park in China after Hong Kong Disneyland opened in September.

Han said he didn't know when construction would start because "we are waiting for the State Council (China's cabinet) to make the decision." The State Council declined to release the progress of its review.

"I can't say anything now because the project should be approved by the State Council," said Wang Dongsheng, director of the Department of Social Development of the National Development and Reform Commission, the country's top economic planning agency under the State Council.

Leslie Goodman, senior vice-president of Worldwide Public Affairs of Walt Disney Parks and Resorts, said in a statement yesterday that "there is nothing new to report on the progress of Shanghai discussions."

"The Walt Disney Company has not reached an agreement with Shanghai to build a second Disney destination resort in China. If we were to reach an agreement for a second park in China, it would not open before 2010."

However, Goodman said China was the first choice for Walt Disney to expand business.

The statement is exactly the same as the one issued last month after reports of an impending deal. Disney President Robert Iger was then quoted by Hong Kong Cable TV as saying that discussions with the Shanghai government were ongoing.

A Disneyland park would be a boost for Shanghai's rising travel industry. Last year, the city hosted more than 90 million domestic travellers and 4 million overseas visitors. The park would also boost the construction of related facilities.

"Shanghai lacks a large-scale theme park," said Huang Guangrong, secretary-general of the Shanghai Travel Industry Association. "The construction of a Disneyland will greatly improve the city's attraction to domestic travelers."

Chuansha town in the Pudong New Area east of Shanghai has often been mentioned as the most likely place for the park's location.

A Chuansha government official who identified herself only by the surname Zhu, said she had heard that a large parcel of land has been reserved for the possible construction project.

"Is it true?" she said when asked if she had heard of Han's announcement. "That would be really good."

(China Daily March 8, 2006)