The Ministry of Works and Engineering will take over responsibility for Morgan's Point tomorrow — but it is staying tight-lipped about whether that means a multimillion dollar clean-up is due to begin.

Bermuda Land Development Company (BLDC) currently controls the former US Naval Annex on the border of Southampton and Sandys, which is heavily polluted with oil, jet fuel, asbestos, metals and other chemicals.

But an e-mail seen by The Royal Gazette from BLDC's accounts department says Works and Engineering is about to take over the land.

The message, to an organisation which rents part of the site, states: "No one will be allowed access to Morgan's Point after July 31, 2010, as [the] Works and Engineering Ministry will be responsible for the property from August 1, 2010."

Asked about the e-mail, BLDC chief executive officer Andrew Swan said: "I refer you to the Ministry of Works and Engineering with regard to your query."

Works and Engineering permanent secretary Robert Horton did not respond to questions about whether the switch meant a $35 million clean-up of the land was about to start.

He told this newspaper in February that the work had to be delayed while "alternative funding sources" were sought.

The US Navy vacated the 243-acre site 14 years ago and Bermuda accepted an $11 million settlement from the US to deal with all the former military bases in 2002.

The Premier said in 2007 that Government would absorb the costs of the Morgan's Point clean-up but earlier this year Southlands Ltd. — which wants to build a five-star tourist resort there — was said to have offered to do some of the work itself.

Government and Southlands Ltd. are negotiating a land swap deal which could see the local company hand over its 37-acre Southlands estate in Warwick for 80 acres at Morgan's Point.

Southampton MP Randy Horton said on July 6 that a contract could be put before MPs within a fortnight but nothing was tabled before the House of Assembly adjourned for the summer on Friday.

Cabinet secretary Marc Telemaque could not provide an update this week. "I am not able to comment on the matter, in keeping with the agreement between the Government and the developers with respect to comments in the media," he said.

Asked how the deal was progressing, Southlands Ltd. director Nelson Hunt said on Tuesday: "We are getting there."