South China's Guangdong Province is drafting detailed regulations to guide the development of its large number of uninhabited islands.

"The new regulations will be introduced and come into effect next month," said Bai Hua, director of the Waters Administrative Department under the Guangdong Provincial Bureau of the Ocean and Aquatic Products Industry, yesterday.

Starting next year, Guangdong will sell its islands for tourism, transportation, trade, warehouse and industrial development through a public bidding process, Bai said.

Buyers will include both domestic companies and individuals, Bai said. Sino-foreign joint venture companies that are controlled by the Chinese partners can also bid for the islands, Bai added.

Currently foreigners are not allowed to bid.

All the investors will have to hand in detailed development plans, involving environmental and ecological protection measures, before they bid for the islands.

And no military facilities will be allowed to be constructed on these islands, Bai said.

Land use rights for the islands will be limited to 50 years.

Bai admitted that his bureau has received many telephone inquires and written applications from both companies and individuals that have shown great interest in developing Guangdong's islands since his bureau revealed its plan to auction off its islands in July.

Guangdong has a total of 1,434 islands. And more than 90 percent of them have no residents at all. And 604 of these islands each cover an area of more than 500 square meters which can develop tourism, warehouse, transportation and industrial projects.

Bai is expecting the islands will sell for from 100,000 yuan (US$12,000) to more than 100 million yuan (US$12 million) each.

Experts believe that development of Guangdong's uninhabited islands has great potential. These islands, which have little pollution, usually enjoy abundant ocean and aquatic resources, experts said.

But they warned that the province is frequently struck by typhoons and other natural disasters, and lack fresh water and poor transportation facilities would also make it hard to develop these islands.

(China Daily December 10, 2003)