Arup, the London-based consultancy, was last week chosen as master planner of the first phase of the multi-billion pound Dongtan “eco-city”, which is being developed by the Shanghai Industrial Investment Corporation, the Hong Kong-quoted investment arm of the Shanghai city government. The new city will be built on the eastern end of Chongming, a large island that sits in the mouth of the Yangtze river delta a few miles northeast of the city centre, and close to Shanghai’s new airport.

The development will eventually extend to cover some 8,800 hectares, roughly equivalent to New York’s Manhattan island, and is expected eventually to house several million people and a range of new high- technology industries and leisure facilities.

Shanghai also claims Dongtan will be the world’s first genuinely eco-friendly city, powered by renewable energy sources and as close to carbon-neutral as possible.

“We are absolutely over the moon about this,” said Peter Head, a director at Arup and head of the consultancy’s urban design and development business.

“It is a very important deal, not only for us as a company but also for the future environmentally friendly direction of development in China that is being encouraged by the government.”

Arup already has a large presence in China, with offices in Beijing, Shanghai, Shenzhen and Hong Kong.

Its automotive consultancy advised Nanjing Automotive, the Chinese carmaker, on its recent purchase of the assets of MG Rover.

Arup clinched the deal last week after an international design competition that began three years ago and intense talks with Shanghai Industrial that have run for more than a year.

Head would not be drawn on the likely level of fees from the project, but it will involve a team of 20 Arup staff working full-time.

The British firm will mastermind the planning of the first phase of Dongtan, a development that will cover 630 hectares, roughly three times the size of the City of London.

It will include a transport hub and port that will accommodate fast ferries from the mainland and the new Shanghai airport, a leisure facility, an education complex, space for high-tech industry and housing.

“It is one of the last big spaces around the Shanghai area that is undeveloped,” said Head.

Arup expects to have its master plan approved by October next year, with construction to start shortly after. The first phase is expected to be completed by 2010, in time for Shanghai’s hosting of the World Expo that year.

“This is very much a showcase project for the Chinese,” said Head.

The design brief calls for the development to be ecologically sensitive. Dongtan is currently largely agricultural land, and has environmentally sensitive wetlands on its eastern edge. “We may be able to run the entire city on renewable energy,” said Head.

Arup’s commitment to the environmental theme has extended to its own input. It has pledged to offset all the greenhouse gas emissions caused by its involvement, including travel to and from China, and even down to the personal energy use of staff involved.

It has signed a contract with CO2E, the emissions brokerage owned by Cantor Fitzgerald, which has offset the Arup emissions by supporting a small hydroelectric power scheme in China.

Head said the Dongtan development underlined the Chinese government’s move to take account of environmental considerations in future policy initiatives.

Last week Beijing revealed plans to put hefty sales taxes on gas-guzzling cars.

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