HONG KONG, (Xinhua) -- The Airport Authority Hong Kong (AA) won a nod from the central government on Wednesday to make a strong foothold on the Chinese mainland by jointly manage Zhuhai Airport with local government for 20 years.

It is the first time that China has allowed overseas capital to manage its airport on the Chinese mainland.

The agreement between the State-owned Assets Supervision and Administration Commission of Zhuhai city and the AA to jointly operate Zhuhai Airport was announced by the Hong Kong/Guangdong Co-operation Joint Conference held in Guangzhou, the province's capital.

The Airport Authority Hong Kong will establish a new joint venture, known as the Zhuhai-Hong Kong Airport Management Company Ltd., to manage and operate the Zhuhai Airport for 20 years, according to a press release from AA.

The joint venture with a registered capital of 360 million yuan (45 million U.S. dollars), will pay a franchise fee for the exclusive right to operate, said the release. But it did not reveal the amount of the franchise payment.

According to the agreement, AA holds the joint venture's 55 percent stake, which it acquired for 198 million yuan (24.75million U.S. dollars) through its wholly owned subsidiary HKIA (China) Ltd.

The joint venture's remaining shares will be held by the State-owned Assets Supervision and Administration Commission of Zhuhai city government through an injection of 162 million yuan (20.25million U.S. dollars) by its wholly owned company Zhuhai Headway Transportation Investment Co. Ltd.

The joint venture's two parent companies will discuss the timing and details of share acquisition of the project, according to the press release.

The joint venture's management team will be based on the existing management team and, working closely with existing staff, will expand Zhuhai Airport's domestic network, strengthen and diversify its air services, improve the airport's accessibility, and maximize the synergy between Zhuhai Airport and Hong Kong International Airport (HKIA).

Deng Weilong, Secretary of Zhuhai city committee of the Communist Party of China (CPC), said the deal was of profound significance, adding that the cooperation between the two airports, the soon-to-be-built Hong Kong-Zhuhai-Macao Bridge and other infrastructure projects in Zhuhai will accelerate the development of the western Pearl River Delta.

Victor Fung Kwok-king, Chairman of the Airport Authority, said the cooperation between HKIA and Pearl River Delta airports showcases Hong Kong's ability to work with the Chinese mainland to achieve win-win results.

Zhuhai Airport is located in Zhuhai Special Economic Zone in the western Pearl River Delta, where growth potential abounds.

Zhuhai's gross domestic product grew at a compound annual average rate of 13.4 percent between 2001 and 2004.