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A new $2 billion resort in the Bahamas is expected to compete with the long-established Atlantis on Paradise Island.

The project represents the largest single-phase development in the Caribbean.

It represents an "unprecedented joint venture," said Hotel Online, that will create a "unique metropolis in its setting, design, operation and services."

Baha Mar Resorts Ltd. says it finalized an agreement with casino operator Harrah's Entertainment Inc. and hotelier Starwood Hotels & Resorts Worldwide Inc. to build the resort.

Baha Mar will be a mixed-use project on a 1,000-acre site in Nassau.

"They have done a good job, and they are a big project sitting on Paradise Island," Baha Mar Resorts President Don Robinson told Reuters. "We provide an alternative in the Bahamas other than Atlantis."

"This ... will only add to the overall tourism draw to the region," said a spokesman for Atlantis.

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