many expect will be developed as a golf course.

Mr. Garry Madeiros, Belco's president and chief executive officer, said he does not believe construction of a power plant on the 250-acre site would rule out a golf course.

But he said Government will be making "a mistake'' if it does not set aside about seven acres at the Annex for the electric company's future needs.

Room for expansion away from Serpentine Road is needed, not solely to meet future demand projections, but to meet Government's tough new clean air standards, he said.

"Think of the time factor that could transpire before this is needed,'' Mr.

Madeiros told The Royal Gazette . "Let's say it's 14 years from now.

"Do you think there's going to be a lot of land available anywhere, especially when you're talking about a power plant? If that day comes, "there would be no place Belco could go, and Bermuda would be at risk,'' he said.

"It kind of suggests if we're going to do it, we should do it now.'' If needed, the Belco plant would likely produce no more than 20 megawatts.

Peak demand currently is 91 megawatts. About seven acres would be needed, Mr.

Madeiros said.

A typical 18-hole golf course, like Port Royal Golf Course, takes up about 155 acres.

The 1,200-acre US Naval Air Station at St. David's and small Canadian and British military Bases are also being returned to Bermuda, but Mr. Madeiros said the annex is "almost the only appropriate area that could provide what we need with minimal impact to customers and to residents.'' A conventional power plant is ruled out at St. David's, because the smoke stack would be a hazard to aircraft navigation.

The Annex is also attractive because of its deep-water port and proximity to the rapidly-growing Southampton area.

Mr. Madeiros said Belco has been interested in securing part of the Annex site for three or four years. But officials recently discussed their plans with Management and Technology Minister the Hon. Grant Gibbons, who chairs the Base utilisation committee.

Dr. Gibbons said Belco is being "very prudent,'' but no decisions on how the Base lands will be used have been made.

If land is set aside for Belco, it does not mean it must be "sterilised,'' he said. For example, it could be used as parkland.

Asked if setting aside part of the Annex for possible power plant construction would make surrounding land less attractive to developers, Dr. Gibbons said a master plan for the Base lands was needed to answer that question. Government is hiring a consultant to help prepare that plan.