A cruise line has signed a memorandum of understanding to consider investments for Daniel’s Head that would inject new life into the vacant site.

Zane DeSilva, the Minister of Housing and Municipalities, told the House of Assembly that the Bermuda Land Management Corporation signed the agreement with Norwegian Cruise Line Holdings to consider investments to reinvigorate the property.

Norwegian was said to be the only company with interest in developing the property.

He told MPs that under the MOU, the company would “assess and evaluate the possibility of investing and potentially transforming this area into a first-class day tourism product”.

Mr DeSilva added: “I cannot stress enough to all honourable members and the public that these discussions are in the beginning stages and, despite rumours that have recently began to circulate, nothing has been signed off on or agreed to.

“BLMC has not issued a lease to run a private cruise passenger area or any other form of private resort.

“What I can share is that at this stage BLMC has signed a non-binding MOU that provides six months for NCLH to complete their vision and concept with high-level financial requirements for us to consider.

“This opportunity is still in its early stages, and conceptual designs and financial models have yet to be developed.”

Mr DeSilva said that if the project did advance, stakeholder engagement would be a major part of the process, adding that he would continue to deliver updates to the House.

“What I do wish to make clear is that my ministry and BLMC are committed to delivering a development for this site that will be a new first-class offering for Bermuda that considers and includes both the needs and requirements of the investor as well as the Bermuda community and incorporates Bermudian entrepreneurs and employees,” he added.

Daniel’s Head, in Sandys, formerly housed the 9 Beaches resort, which shut its doors in 2010.

It was announced in 2018 that the Bermuda Land Development Company had partnered with the professional services firm KPMG to market the site to potential developers overseas, but the agreement was halted the following year.

The information came as Mr DeSilva made a statement updating the House on the work of the BLMC.

He said that while work to fully dissolve the Bermuda Land Development Corporation would not be complete until next month, the BLMC is fully operational and managing the properties that had been overseen by the BLDC and the West End Development Corporation, which amalgamated last year.

“In the West, BLMC continues to work along with the Ministry of Public Works on the current north arm repairs for the tugs berth,” Mr DeSilva said.

“This project is ongoing, and the collective team is making progress while ensuring that there is as little impact as possible on the day-to-day operations at King’s Wharf and the transportation of its passengers.”

Mr DeSilva added that upgrades at the marine and ports facility neared completion, with the site expected to be ready by the end of the month.

“This project will see the marine and ports Dockyard operation located in the North Camber relocated to the former Oracle sheds,” he said. “However, marine and ports will continue to operate within the ramp area.”

He added that preparations for major redevelopment works at King’s Wharf, to be carried out in collaboration with Norwegian, were under way, with work expected to start in October and be completed by March 2026.

Mr DeSilva said that there were also continuing discussions about potential investments in Dockyard’s Victualling Yard buildings, but that it was still too early to provide specific details about the project.

Queried by Michael Fahy, the Shadow Minister of Housing and Municipalities, Mr DeSilva said there had been “several folks that have expressed interest” in Daniel’s Head, but that there had been “no other parties that have expressed interest in developing”.

Mr Fahy asked whether the interested party for the Victualling Yard was an hotel or a cruise line.

Mr DeSilva responded: “It’s not a hotel. But it’s a business that I know that everybody in this House would love to see happen — whether it’s selling peanuts or selling paper bags.”

“We’re just thankful that someone has come forward with a proposal for those particular buildings.”

He confirmed that it had come from a local company.

Turning to the East End, Mr DeSilva told the House that the Water and Waste Infrastructure Project was now in its final stages.

“Unfortunately, there were delays receiving the pumps,” Mr DeSilva said. “Final pump configurations at Market Square/King’s Square are ongoing, and sewage transfer to Southside is anticipated to begin in August.”

He said that work to transfer 38 houses from leasehold to freehold was still under way, with Chancery Legal now involved to ensure that the process can be completed this financial year.

“I wish to also assure the East End community that BLMC is also actively working on two initiatives,” he said.

“One with the Bermuda Housing Corporation to identify possible housing opportunities, and BLMC is in preliminary talks with a major local wholesaler and retailer about relocating their operations to the East End, which would present additional commerce traffic within the area.”