Demolition of the old Club Med site will be delayed after the discovery of huge amounts of asbestos throughout the former hotel.

The news was announced yesterday by new Works and Engineering Minister Derrick Burgess who said the job of removing the asbestos would be "one of the biggest jobs of that type Bermuda has undertaken, certainly this Government".

At a press conference Mr. Burgess revealed that asbestos clearance in three dormitory buildings on the property had started in December, with demolition of the southwest building already underway.

Mr. Burgess said the asbestos contamination in the main hotel building was pervasive and added: "Once that is completed (the main building's asbestos abatement) that will come down and we're hoping to complete that sometime this year."

When pressed to give an idea as to the cost of the abatement and demolition, being carried out by Bermudian contractors, he said he was without the figures, noting at one point, "it's going to cost some money".

Last year, Premier Ewart Brown stated that construction of the new hotel would begin by the end of the year.

At a Progressive Labour Party meeting in Southampton on December 5, Dr. Brown told party supporters: "Within the next week and a half, I expect he (Carl Bazarian of investment firm Bazarian International) will be here to announce that that property is going to be the site of a new St. Regis hotel.

"If you think it's just talk, just watch and you will see.The agreement has already been signed with respect to the land. They are ironing out a few small details with respect to the brand itself."

It followed his pledge at a PLP meeting in St. David's last May: "Let me tell you I made a commitment: in 2007, construction will begin on the new hotel in St. George's. I can promise you it will be delivered."

When The Royal Gazette asked for the reason for the construction delay, Mr. Burgess stressed asbestos abatement was a delicate process. "Abatement of asbestos takes some time, we were not aware of the amount of asbestos that these buildings contain and so that has put us back," he said. "Certainly, it was our wish and endeavour to have construction started but you cannot start under these conditions."

The Ministry of Tourism has also failed to provide an update to this paper on whether or not the deal between St. Regis and Government, has been finalised.