The administrative procedures for the establishment of the development fund for Guangdong-Macau cooperation, which will amount to 20 billion yuan, are almost complete, said the Macau government’s Secretary for Economy and Finance on Thursday.
Leong Vai Tac, who recalled that the negotiations on the establishment of the fund had already been concluded, said he hoped that the agreement would be signed as soon as possible to ensure the return of the investments of the Macau Special Administrative Region financial reserve and Macau’s integration efforts in the construction of the Guangdong-Hong Kong-Macau Great Bay.
The Guangdong-Macau development fund for cooperation will last for 12 years, with Macau as a limited liability partner and Guandong province responsible for investment projects.
The fund is focused on investment with “preservation of value and interest guarantee” and ensures an annual rate of return of 3.5% during the investment period.
When the operation of the fund reaches the seven-year mark, the total annual average income will be calculated and, if it exceeds 7.8%, all remaining value after settlement and after deducting the value of the risk reserve will then be split between Macau and Guangdong to a ratio of 55% and 45%, respectively. (macauhub)