Hong Kong will implement the cooperation outlines of the Pearl River Delta (PRD) in the current legislative year by concrete measures, said an HKSAR official Wednesday.

"We are implementing the Outline of the Plan for the Reform and Development of the Pearl River Delta by drawing up a framework agreement for Hong Kong-Guangdong cooperation," said Financial Secretary John Tsang in his Budget Speech.

According to Tsang, this framework will translate the Outline's macro policies into concrete measures conducive to the development of both places, with a view to incorporating the related policies into the 12th National Five-Year Plan of China.

The government of Hong Kong Special Administrative Region (HKSAR) is also working with Guangdong and Macao to formulate specific regional cooperation plans on building a quality living circle and on infrastructure development.

On the other hand, the government of HKSAR is in close liaison with the Guangdong Provincial Government and the Shenzhen Municipal Government to explore ways for promoting the development of service industries in Qianhai, a reclaimed land strech of Shenzhen.

The present consensus is that the Shenzhen Municipal Government will assume the leading role in developing and managing Qianhai, and the HKSAR Government will render advice on planning and policy formulation.

"This will allow us to tap the Greater PRD market, which has a population of 50 million, and in turn the Pan-PRD market, with a population of more than 400 million." Tsang said.