Sun International to invest millions in upgrade and refurbish programme.

The Eastern Cape Gambling and Betting Board has finally approved the extension of Sun International 's gaming licence at the Wild Coast Sun for another 10 years, it was announced yesterday.

The approval process took more than 18 months to conclude and comes as Sun International's licence was due to expire at the end of this month.

In May Sun International said in its quarterly market update that the gambling board had approved the extension of the licence, but the parties were not able to agree on certain licensing conditions.

"The group has not been able to agree to certain of these conditions with the gambling board in the 30- day period allowed. The board has advised the Wild Coast Sun to expect a written notification of the appointment of a statutory tribunal which will review the licence award," the company said in the market announcement.

Sun International said yesterday that an agreement had been reached on the amended conditions of its licence extension.

Sun International CE David Coutts-Trotter said that the Wild Coast Sun would go ahead with an extensive R340m upgrading and refurbishment programme, which formed part of their renewal bid.

"The award of the licence is excellent news for the economy of the Eastern Cape. It will unlock a R340m investment which will include the complete refurbishment of the existing 246 bedrooms, the conversion of the 50 Vacation Club units into a further 150 bedrooms, the upgrade of the convention centre as well as the main restaurant and the Aloha Village entertainment area. In addition, an exciting and ambitious water park will also be constructed, which will feature some of the latest rides to be found anywhere in the world," said Coutts-Trotter.

During the refurbishment and construction phase a further 660 direct jobs will be created as well as an estimated 3000 indirect jobs .

"Work on the upgrade and refurbishment will commence immediately," said Coutts-Trotter.

Sipho Majombozi, chairman of the Eastern Cape Gambling and Betting Board, said there was nothing sinister in the protracted negotiations. However, he said the issue of a land claim on the resort had been discussed and Sun International had undertaken to help settle the issue as soon as possible.

The Wild Coast Sun is operated by Transun, which is owned 70% by Sun International and 30% by the Mbizana Development Trust, which is inclusive of all communities in the area.