Guangdong and the central government will put 7 billion yuan (HK$8 billion) toward the 37.45 billion yuan bill, Hong Kong 6.75 billion yuan and Macau 1.98 billion yuan, according to Chief Executive Donald Tsang Yam- kuen, who unveiled financing details during the 11th Hong Kong- Guangdong Cooperation Joint Conference with provincial governor Huang Huahua.

The remaining 21.72 billion yuan for the project will come from loans.

However, neither Tsang nor Huang revealed further details of the loan plan. Tsang said work will start no later than 2010.

The contribution was determined by the economic benefit to each place, the chief executive said. As the governments are financing the project, there will be less pressure over toll pricing, Tsang said.

Guangdong will manage the bridge as it is within its sea area and, therefore, under its jurisdiction, Tsang said. Asked exactly how much Beijing will contribute, Huang said it is too early to tell but he emphasized the central government's financial support for the project.

A Hong Kong government source denied that Beijing made the move to demand greater leverage over the bridge.

The funding by the central government shows its support of the work and to speed up the process. As to the issue of leverage, such details have not yet been decided, the source said.

Tsang revealed Beijing's financial support for the project in his opening speech at the conference yesterday and throughout the day talked more about the bridge than Huang.

Neither Tsang nor Huang revealed why the central government has joined the project or why the initial build- operate-transfer plan was abandoned. The three governments had planned to tender the project early this year with Hong Kong picking up half the remaining cost.

The change in the finance arrangements will lower the commercial pressure on pricing tolls - previously estimated at 150 yuan in papers submitted to the Legislative Council.

"It's too early to say whether the toll will be lowered," the government source said. "However, if there's no commercial pressure from the developer, the government certainly has more say based on the public's affordability."

As to how the remaining 21.72 billion yuan will be raised, the source said the most logical way is to set up a company owned by the three governments and collect funds from the public, such as by issuing debentures. The three governments are still to discuss details, such as tolls, the quota system for traffic flows on the bridge and legal issues.

The Hong Kong government hoped the bridge could be completed in 2015-16, and details for further funding will be submitted to Legco for approval in the coming legislative year.

Political analyst James Sung Lap- kung said Beijing having the biggest say was not the main reason for its funding.

"Whoever the major shareholder, it could not stop the central government having a say if it really wanted to. Yet I believe the funding genuinely shows [Beijing] really wants to speed up construction of the bridge after years of argument over the financing arrangement between the three cities."

Raymond So Wai-man, associate professor at Chinese University's department of finance, said the new arrangement will minimize the chance of negotiation between developers and the governments and will therefore reduce public perception of collusion between business and the government.