The construction for the expansion project of Disneyland theme park is likely to start this year as Walt Disney Co. and the Hong Kong government reached an agreement to spread out the city's Disney at a cost of about $465 million (HK$3.63 billion).

Disneyland theme park is a joint venture between Walt Disney and the Hong Kong government.

The expansion project is likely to generate 3,000 jobs.

All the required new capital for expansion of Disney will be provided by California-based entertainment giant, the Burbank.

It is also informed that US $795 million will be invested by U. S. Media Company in the joint venture.

Intimate sources said that govt. would not invest any new capital to fund the expansion.

However, the govt. plans to convert a considerable amount of park's existing loans into equity. It will allow the Disney Park to keep a majority stake but its stake will fall to
52% from 57%.

The govt. plans to convert loans worth approximately $350 million into equity.

On an average 4.5 million to 4.6 million people pay a visit to the park.

In the recent trading Disney shares closed at $23.66, up $0.23 a share.