planning hurdle.

Planning approval for the long-awaited project has been extended by the Development Applications Board until August 18, 1996.

Yesterday it emerged developers were still locked in talks to secure funding for the scheme.

Mr. Frank Bryant of America's Related-Crismark said: "Everything is still on hold.

"There are some detailed discussions going on, but until we get a signature along the dotted line we can't say when things will start.'' He added: "Naturally I am delighted planning permission has been given. I've learned to take nothing for granted.'' Mr. Bryant said planning approval for the 14-acre would make the project more attractive to a potential investor.

Mr. Jack Outerbridge, president of L.P. Gutteridge, agents for the scheme, explained the DAB had approved an extension to earlier planning permission.

He believed permission had previously been granted until 1994.

The proposed South Shore hotel was to have opened this year. But the bottom fell out of the project in November 1991 when Japan's DK bank -- the largest in the world -- withdrew funding.

The bank had been reined in as Japan's Government tightened purse strings during the recession.

Now the hotel is unlikely to open before 1996 at the earliest.

The project was expected to create up to 300 new jobs and work was likely to take between 30 and 36 months.

The application to the DAB was in the name of Bermudatel Ltd.

This is an umbrella group for the Ritz Carlton, and developers Related-Crismark and Japanese construction giant Shimuzu Corporation.

Planners laid down several conditions with their approval including that a building permit must be given before ground is broken, and the site should be landscaped.

Mr. Bryant said he had no doubt the venture would go ahead -- but he could not say when. "August 1996 now seems the earliest time when the hotel opens.'' Mr. Bryant refused to name the potential investors, saying: "That would compromise everything,'' he added.

Tourism Minister the Hon. C.V. (Jim) Woolridge said he had been devastated when the DK Bank pulled out of the project.

The hotel would prove a money-spinner for Bermuda, and was just what was required two years ago, he said, adding: "It's a darn shame it didn't go ahead as planned, but the project is still very much on track.''