Red-chip Shanghai Industrial is planning to invest US$120 million in exchange for a 20 per cent stake in Shanghai Municipal's information infrastructure unit Shanghai Information Investment. This would allow Shanghai Industrial to take part in the city government's largest ever information infrastructure construction project - the Shanghai Infoport project. Under the plan, Shanghai will spend 70 billion yuan (about HK$65.1 billion) in the next five years to rebuild the city's information technology infrastructure, which includes upgrading and integrating the telecommunications, Internet and cable networks. The project will provide Shanghai with broadband Internet access and interactive multimedia capability. Established in 1997, Shanghai Information Investment will play a key role in Shanghai Infoport. Shanghai Industrial would soon announce full details of its investment agreement with Shanghai Information Investment, sources said. Other shareholders include Shanghai Alliance Investment and Shanghai Post & Telecommunications Administration. Shanghai Radio, Film & TV Administration, Shanghai Oriental Pearl and Shanghai General Electronics also hold stakes. In January, Nasdaq-listed Compaq Computer and CMGI said they had formed an alliance with Shanghai Information Investment to pursue Internet opportunities. These include setting up a joint venture to build and operate Internet and electronic commerce services to assist government and private enterprises.