Dutch group African Riviera plans to invest $324-million (about R2,4-billion) over the next two years to develop tourist projects in northern Mozambique, a top official said.Tourism Minister Fernando Sumbana said the company would build a floating hotel at Mozambique Island, the country’s former capital off the northern coast of the southern African country that is linked by a bridge to the mainland.“We recently held a conference on Mozambique Island after inviting the private sector and other interested stakeholders to draw up an ambitious plan to revamp the island, and African Riviera pledged to invest,” he told Reuters.

“They are currently finalising the proposal, and we are waiting for it, to analyse and approve.”

The company had also expressed interest in constructing a five-star hotel in the nearby mainland town of Lumbo.

“They told us that they want to develop an ambitious project worth $324-million in the next two years. The island will be our draw card for tourism attraction in northern Mozambique, therefore we need sound investments there,” Sumbana said.

African Riviera would work in partnership with Mozambican Port and Railway company (CFM), which owns key infrastructure in the region. Sumbana said construction was expected to start on the second quarter of 2008, once the company secured a licence and its proposal was approved.