Species of animals unique to Bermuda could be wiped out if a plan to build luxury homes is allowed to go ahead, international environmental experts claimed yesterday.

Bermuda Properties Ltd. wants to build on Ship's Hill as part of a plan to help revitalise the Marriott's Castle Harbour Resort.

But the scheme has enraged environmentalists who fear the natural woodland and caves below the areas earmarked for development could be irrevocably damaged.

They are contacting the World Wildlife Fund for Nature which could be asked to intervene and are checking to see if Bermuda is in contravention of rules agreed at the Rio Earth Summit.

Yesterday two overseas experts brought in by the Mid-Ocean Golf Club, the National Trust and the action group Save Open Spaces, revealed some findings of their environmental assessment of the scheme.

Dr. Tom Iliffe said: "It is my recommendation that the building should not go ahead.'' In Church and Bitumen caves there are about 60 species of creatures -- tiny relatives of crabs, shrimp and lobster -- which are unique to Bermuda, he said. Both caves run underneath Ship's Hill.

In addition there are three species of trees -- again unique to Bermuda -- that grow on the hill which in 20 years could be returned to a pre-colonial state if properly managed, according to the experts.

Dr. Iliffe, an expert on Bermuda caves who worked at the Bermuda Biological Station for 11 years, said the species found were not known to exist anywhere else in the world.

An increase in organic matter -- such as leaves -- in the caves could lead to the death of the creatures as organisms destroying the matter used up oxygen in the water.

"There is about 50 pounds of organic matter in the caves in a year. A doubling of that natural input would be all that would be required to pollute the caves and use up the oxygen,'' he said.

Dr. Iliffe has seen similar results at other caves, notably near the Causeway, which have been polluted following building work, where the once- clear water is now muddied and stinking of sulphur dioxide.

He believes that of the estimated 150 Bermuda caves between 20 and 30 have been destroyed either by vandals or pollution -- with sewage leaching down into the water from buildings constructed above them.

"In my view the Ship's Hill development does pose a substantial risk to the caves and the animals that inhabit them,'' said Dr. Iliffe.

He intends to submit a number of the creatures found in Church and Bitumen Caves to the International Union for the Conservation of Nature as endangered species.

"I would recommend that no construction be permitted on the Ship's Hill site.

I would look to see these pristine areas preserved and instead of using them for development look at areas such as the old bases.'' He and Dr. Philip Smith arrived in Bermuda last Thursday when they began their environmental assessment of the BPL plan.

Planning permission in principle has been granted but it is expected BPL will not apply to the Development Applications Board until Next April or May for final approval.

The application will have to be presented with an environmental impact plan -- assessing the effect of the scheme on the land -- which BPL's experts are now compiling.

However, yesterday Dr. Smith pointed out that under the Bermuda 2000 and 1992 Plans specific policies were laid out governing the protection of caves and woodlands.

The Bermuda 2000 plan says, "No development, other than that required for conservation management, will be allowed in or near caves.'' It adds another clause which says "Development which may have a detrimental impact on cave systems will not be permitted.'' The 1992 Plan says, "The protection of caves shall take precedence over all other planning considerations and the Board (the DAB) shall refuse any development application or plan or subdivision if, in the opinion of the Board, the proposal will have a detrimental impact on a cave entrance or an underlying cave.'' Dr. Smith, whose job was to give an overview of planning policies, believes there are three types of trees unique to Bermuda on the site -- the palmetto, the pepperonia and the olivewood.

He believes that in 20 years the site could be restored to a pre-colonial condition and is to contact the World Wildlife Fund for Nature to inform it of the situation and possibly get it involved.

Dr. Smith is also checking whether Bermuda is party to the agreements in the Rio Earth Summit, in particular the Bio Diversity agreement which is designed to protect species in their habitat.

Both experts will compile a report which should be ready in about three weeks.

Last night, Mr. Peter Parker, BPL's general manager, said the company's own experts were compiling an environmental impact study but it had already pledged not to carry out work which could damage the caves.

Mr. Parker also cast doubt on the objectivity of Dr. Smith and Dr. Iliffe, suggesting they could have reached a conclusion before they got to the Island.

Mr. Parker said his study was also more comprehensive. The two experts, he said, had been on the Island for just a few days.

Ship's Hill From Page 1 Radar images of the Hill have been taken, said Mr. Parker, to show where BPL could not build, a sewage system would be designed to take sewage away from the caves and nothing would be dumped in them.

Bitumen Cave had already been damaged by original hotel building work in the 1930s, said Mr. Parker, who added the company viewed the caves as being important.

In addition, he said, nothing had been designed and would not be until BPL's own study was completed.

He said the two experts had "asked very cursory questions'' about the scheme during meetings between the two parties.

"In my view we are doing exactly the right thing. If everything tells us that we cannot build on that Hill without damaging the caves and the environment then we will not do it.

"But I am convinced that we will be able to build without causing any damage.''