Kampala — AZURE Holdings, partners in the Kingdom Hotel Kampala, yesterday said they had entered into a joint venture with Prince Alwaleed Bin Talal to build a five-star hotel on the land formerly occupied by Shimoni Demonstration School.

Sawan Ravani, the Azure Holdings director, said the partners had secured $80m for the project.

"The land has not been awarded to us. We have entered into a partnership to ensure that the project is completed," he said.

Ravani said the first phase of the project would be completed next year. "The project will comprise a five-star hotel, a commercial and office park, conference facilities and a shopping mall. The total project cost is estimated between $65m and $80m," Ravani said.

A crane was at the site by press time yesterday.

According to media reports, the Government was negotiating with Prince Alwaleed on how to get back the land and refund $2m to him. But the Government and Azure Holdings have denied the reports.

The investment state minister, Aston Kajara, yesterday said the Government had welcomed the new partnership. He added that they had sought the advice of the Attorney General over the matter.