Government looks set to provide a financial guarantee to the Morgan’s Point developers.Finance Minister Bob Richards announced yesterday that Government is looking at ways to help Morgan’s Point Limited obtain financing for the $2 billion project, and has issued a “letter of comfort” so the developers can begin discussions with lenders.While the Ministry of Finance press release stressed that no commitment has as yet been made, it noted that environmental remediation issues at the site had been hindering the developers’ efforts to secure financing.“Government is committed by way of various agreements to the remediation of lands conveyed to MPL for the construction and operation of a boutique style hotel, condominium residences, sewage treatment plant, and other facilities,” it stated. “MPL has advised Government that the environmental remediation issues at Morgan’s Point are impeding its ability to secure satisfactory construction financing for Phase 1 of the project.“In that regard, MPL has requested that the Government provide credit enhancement for the financing of Phase 1 of the project in the form of a limited financial guarantee.”Mr Richards said that his Ministry does not, in general, issue guarantees to private sector projects save in matters of national importance.“However, the Island has not seen a new hotel development for some time and the Government strongly supports this project and the economic benefits that it will bring to Bermuda,” he added.“We must do more to attract foreign capital to our shores to develop our tourism product. At a recent Tourism Summit held in Bermuda it was noted that our competitors are doing a great deal to attract financing for hotel projects, some governments are going so far as to guarantee the debt in order to finalise the acquisition of the required financing for the project.“I am confident that if satisfactory financing is obtained this development will turn a brown field site into a stunning new resort — leading Bermuda back into the forefront of the hospitality industry.”And, the Minister said, the project will create “numerous” jobs and generate significant revenue for Government’s coffers.“Although the nature and extent of the credit enhancement cannot be quantified at this time and will depend upon the particulars of the project and the construction loan, I can advise that I have recently provided a letter of comfort to the developers to confirm the Government’s willingness to consider credit enhancement for the project.“This letter is required so that MPL can begin discussions with potential lenders for the project finance.“It is important to note that at this time the Government has made no firm commitment, therefore, this comfort letter is non-binding. Also this action should not be considered precedent setting and is only being considered because of the environmental remediation issues at the Morgan’s Point site.“The Government is eager for the project to proceed and succeed, and is looking forward to working with the developer to achieve that objective”.In June, Craig Christensen, one of the three principals behind the scheme, was confident about the project’s progress, telling this newspaper that he expected ground to be broken by the end of the year.Mr Christensen owns the 250-acre site with business partners Brian Duperreault and Nelson Hunt. The developers are hoping for the first phase of the resort to be open for business by the beginning of 2016.A boutique hotel of up to 140 rooms along with some residential units could be built within two years of construction work starting.But the developers are also planning a marina with its own hotel to accommodate mega yachts and their crews, and a third (500-room) hotel.Government is also looking into assisting developers of the St Regis hotel project with their financing.The $350 million project needs a $15 million bridge loan before full financing can be obtained. Premier Craig Cannonier told this newspaper last month that Government was hoping to bring legislation in September which would allow the Corporation of Hamilton to guarantee the funds.