Casemates Prison, says development manager Mr. Ed Williams.

Mr. Williams said the old prison at the gates of Dockyard had not yet been turned over to Wedco from the Ministry of Health and Social Services, and he was not sure when it would be.

But Wedco would be so busy taking over HMS Malabar from the Royal Navy that "I would imagine it would sit for a while'', Mr. Williams told The Royal Gazette .

Wedco would "review some of the proposals and concepts in our over-all development plan to see what we would do with it'', he said.

Prisoners at Casemates were recently moved to the new Westgate Correctional Facility.

Unlike several buildings which Wedco would receive from the Royal Navy today, Casemates was "a massive facility'' that would be expensive to develop, Mr.

Williams said.

An aquarium and a hotel have been suggested as uses for the former prison. But the capital expenses involved are seen as serious drawbacks.

Meanwhile, there had been strong interest in converting the residence of the Royal Navy's Commanding Officer into a guest villa, Mr. Williams said.

Since calling for proposals for the 11-bedroom residence called "The Cottage'' earlier this month, "we're showing the place to people each day'', Mr. Williams said.

All proposals should be in by the end of April. "Then, we'll take it from there,'' he said. It was hoped the guest villa would be open for the 1996 visitor season.

After a 200-year Royal Navy presence in Bermuda, Malabar officially closed on Friday.

Mr. Williams said the main administration building and surrounding units could become "a sports/spa facility.'' A large playing field, tennis courts, and squash courts are already in place. The 13-unit Prince Alfred Terrace could be part of a sports/spa facility or be rented out as apartments for the "high end'' of the residential market.

Wedco would also be looking at water-related businesses, like charter boat fishing, dive operations, and a sailing centre. And the Navy's deep water dock could accommodate a second cruise ship, Mr. Williams said.