The man who stands in line to be the next CEO of the Bank of Bermuda ? Philip Butterfield ? cited the capital that could flow into the local economy in the possible bank sale, as an investment opportunity to finance much needed infrastructure projects.

He also said there should be some thought given to the inflationary impact that could follow more than $900 million in cash coming into the Island at once.

Mr. Butterfield, who currently holds the number two bank spot as COO has been named to take up the reigns, in the next year, from CEO Henry Smith, pending the bank?s sale to HSBC.

?There is a (large) aggregate level of capital which potentially could return to the Island. But Bermudians will also have the opportunity to re-invest and we would hope they would give favourable consideration to an investment in HSBC, a well-diversified global player and we think worthy of consideration.

?(We) do know that there are some who may say they are more comfortable with their capital is invested at home.?

Mr. Butterfield said that spending by shareholders could push inflation up.

?One of the concerns I would have is what this might that represent in terms of inflationary pressure. For example, if everyone pursues the limited supply of real estate that we have, what does that do to the price of real estate on Island.?

Speaking of the Island?s need for investment in infrastructure, Mr. Butterfield said: ?If you look forward, there are a number of large infrastructure projects that are going to require capital here in Bermuda. And perhaps any one, or some of those infrastructure projects could be undertaken because there would be a body of capital that could be invested in that.

?We know for certain that we need a more permanent solution to the Causeway. Whether we like it or not, a repeat of Fabian or Fabian-like experience would put us in a place where we would have an inoperable roadway to the airport. Or we might as a community decide to undertake a bridge or a tunnel as a solution.

?That is a sizeable capital investment that could be structured as a bond issue, that might provide an investment opportunity by Bermudians in their own future. Another option is putting all of our utilities underground, to decrease our vulnerability in the event of weather trauma. That would be a prohibitively expensive project to undertake, but it could be properly financed and structured so that we could achieve that.?

As a third opportunity, Mr. Butterfield cited the possibility of redeveloping Hamilton Harbour, including moving the docks elsewhere.

?It looks the same as it did when I was a kid. I?m thinking of the Front Street side, between Albuoy?s Point and Foot of the Lane. There could be a waterfront redevelopment,? he said, adding that having the docks on Front Street was what he called a ?yesterday?s idea?.

As a fourth option, Mr. Butterfield said both the old and new hospital structures at King Edward VII Memorial Hospital were now outdated

?Both ? including the old one (1920s) and new one built in 1965 ? require lots of maintenance and repair. If we are to be a world-class jurisdiction, we need world class health care facilities. We could undertake a major redevelopment of our health care infrastructure ? that would benefit all of us.?

Mr. Butterfield concluded: ?Any one of those four activities could serve as an appropriate investment opportunity and I would like to see some serious dialogue from the various stakeholders ? a community based dialogue.

?I believe in a community of our size and make-up, public/private partnerships are going to be the best vehicle for dealing with our challenges. And there is sufficient goodwill in this community, to make that a reality. We are not looking to Government to be the sole accountable party here, a combination of public and private sectors is the best way to go.?