(Shanghai Daily news)

More than 20 people hired for planning the Shanghai Universal Studios Theme Park project have been laid off, sources familiar with the project said yesterday.

A local official, who works for one of the project's two local partners, said the final plan for the park was submitted to the central government at the end of last year, soon after all the legal documents were signed by the three investors, Vivendi Universal, Waigaoqiao Group Co and Shanghai Jinjiang Holdings Co Ltd.

He said Universal has begun primary concept design since then.

"I believe the layoffs took place simply because Universal wanted to cut costs while waiting for approval," he said.

The Shanghai project started in 2002 when the three investors signed a joint venture agreement to create the park.

Universal is expected to invest at least 25 percent of the total investment to meet the qualification as a Sino-foreign joint venture.

Its partners, the city-owned Jinjiang and Waigaoqiao groups, will share the rest, investing 30 and 45 percent respectively.

According to the Chinese regulations, only the central government can approve the US$875 million project.