Three local firms have stepped forward to provide vital funding for the Morgan’s Point hotel development to be built.

The multimillion-dollar financing commitment from Arch Reinsurance Ltd, Axis Specialty Limited and Validus Holdings Ltd will pave the way for construction of the five-star hotel resort development.

The first round of funding was announced last night by Morgan’s Point Ltd as it emerged that work on the project had already started.

“The support from these local companies demonstrates the confidence that they have both in our island and in our project,” said, Craig Christensen, Morgans Point Ltd president and chief executive officer.

“Their investment in Bermuda’s future has been a huge shot in the arm for our project, and will allow us to assist in the revitalisation of Bermuda tourism and of this historic site.

“We are overjoyed that these icons of industry in Bermuda are so supportive of our vision for the next level of international tourism development for our island.”

The development on the former US Naval Operating Base will include a 79-room, high-end branded hotel complete with restaurants, retail shops and spa.

It will also comprise 173 branded private residences and a mega-yacht marina that can accommodate 77 boats and 21 mega-yachts.

A statement released by Morgan’s Point Ltd said the Bermuda Government had been “wholly supportive” of the project “through the granting of a Government guarantee to provide assurances to the investors that this is a viable project that the Government is willing to stand behind”.

Bob Richards, the Minister of Finance, added: “The movement in development plans for the Southampton peninsula is wonderful news for the island and is another indication of the growing business confidence in Bermuda’s future.

“The Government believes that as this project scales, it will be a key part of a significant stimulus to the Bermuda economy. Congratulations are due to the development team.”

A major three-year remediation programme of the former United States military base was completed at the beginning of this year.

The project involved the removal of container-loads of asbestos and old oil tanks as well as the demolition of abandoned, dilapidated and vandalised buildings on the property.

Morgan’s Point Ltd obtained the land in 2008 as part of a land-swap agreement under the condition that the Bermuda Government remediate the site to residential standards.

Phase one of the two-phase project will include the 79-room luxury hotel which is expected to open in 2018 including 173 branded residences; restaurants; a spa; high-end retail, and a mega-yacht marina providing slips for 77 boats and 21 super-yachts.

Plans for the second phase include a commercial development along a boardwalk that runs alongside the harbour; a large upscale hotel with potential for a world-class casino out on the peninsula; and the ability to create an inner-harbour mega-yacht marina and additional waterfront communities throughout the development.