After a big announcement, Government has fallen silent on a proposed "exciting public-private partnership" to build a luxury hotel and affordable housing on the South Shore in Warwick.

Government has refused to provide any more details on the project or say how much public money will be spent on it.

However, a Government spokesman says a news conference involving the developers is still planned to give more information about the project.

Questions about the project put repeatedly to public affairs officers for both the Ministries of Housing and Tourism were not answered.

Not even the little-known US-based developer behind the project, Larry Swenson, could be reached for comment, despite repeated attempts to call numbers for him in the US and Bermuda.

Premier Ewart Brown announced the proposed development at last week's Caribbean Hotel and Tourism Investment Conference, saying Government is to invest public money in the planned resort on condition the developer also build 125 affordable housing units.

Developer Gilbert Lopes has confirmed he is in negotiations with Government and Atlantic Development (Bermuda) Ltd. to help build a hotel and condos on the old Golden Hind resort site, but a deal is by no means finalised yet.

At least two sources tell The Royal Gazette Dr. Brown jumped the gun in making the announcement.

"It was premature, there's a lot a lot of things that need to be worked out still, including the financing," one source said.

Another said it was not certain Mr. Swenson even has the financial backing in place for the project.

Shadow Tourism Minister Michael Dunkley criticised the Premier's behaviour and "lack of accountability".

"After listening to and reading about his announcement I have more questions than answers," Mr. Dunkley said.

"It appears the Premier is following his past modus operandi of always trying to sound like he has a good thing in the pipeline without giving any specifics at all.

"I hope that is not the case with this development, but there needs to be a lot more detail about it, especially if public money is involved."

Housing Minister David Burch spoke briefly about the proposed development on the radio this week, answering concerns about congestion and sewage, but appearing to know little else about the proposed development, which would come under his Ministry.

At least two local developers, however, were positive about the plan.

Gilbert Lopes, whose company was behind the Loughlands affordable housing project, said there is a clear need for more homes under $500,000 in Bermuda, with current prices for real estate shutting many Bermudians out of the market.

He said there may be more on the proposed development in a week or two.

And hotelier John Jefferis said, "Today's environment requires more creative and innovative ideas in order to put together the financing packages for resort development projects."

Mr. Jefferis, owner of Coco Reef Resorts, said construction financing is hard to come by in this economic climate.

"Stage payment financing for mixed-use developments are still a source of comfort for banks. However, the required percentage of pre-sales has increased," he said.

"Furthermore, the amount of cash funding required to provide construction guarantees for the lenders has also increased, as has the ratio of equity to debt.

"In view of these changes which have produced a more restrictive credit market, the Premier and Minister of Tourism should be congratulated for ensuring a much needed paradigm shift in resort development financing."