Gaborone Correspondent

DIAMOND mining company Debswana of Botswana welcomed a report yesterday from the head of the environmentalimpact assessment agency giving the go-ahead for the proposed construction of a luxurious fivestar hotel in the northern resort of Kasane.

Botswana's director for wildlife and tourism, Joe Matlhare, said the agency had found nothing "environmentally wrong" with the project.

Debswana a 50/50 joint venture between De Beers and the Botswana government has an ambitious plan to build three five-star hotels in the country in a bid to revive tourism.

The proposed project is expected to see Debswana controlling 25%, a strategic partner up to 26% and the pension funds controlling 49%. Under the plan, it will build hotels in the capital Gaborone, Maun and Kasane.

Billionaire hotelier Sol Kerzner, now based in Las Vegas, is one of the potential investors being considered for the Kasane project. Debswana has also vowed to use wildlife, traditional dance and food as part of its plan to lure tourists.

The company has been allocated land alongside the Chobe River, near the famous disputed Sedudu Island, and inside the Chobe National Park.

"Chobe and Okavango are strategic locations to this country. These give us a competitive advantage," Matume said.

He said the project would create employment . "We want the footprint to be large and at the same time increase the number of tourists ," he said.