A financial guarantee to the developers of the proposed $2 billion resort at Morgan’s Point will be limited to $125 million, Government said yesterday.Finance Minister Bob Richards announced last week that he was considering providing a sovereign guarantee for the project because the developers had indicated that the environmental remediation was making it difficult to raise financing.He said a non-binding “letter of comfort” had been issued to Morgan’s Point Limited to enable the company to begin financing negotiations for the first phase of the project.The news raised some eyebrows as private sector guarantees are rarely given, and some observers have noted that one of the key principals of MPL is SAGE Commission Chairman Brian Duperreault, an appointee of Mr Richards.Mr Richards was unable to give the value of the guarantee being considered but a Government spokesman said yesterday that it would not be more than $125 million.Government has a portfolio of about $500 million worth of guarantees on its books.The largest is for repaying the construction financing for the new hospital, estimated at $260 million over a term of 30 years.Government has also guaranteed $200 million in aggregate liquidation preference of preference shares issued on June 12, 2009 by Butterfield Bank for a period of ten years from the date of the issuance of the preference shares.The West End Development Corporation benefited from two sovereign guarantees — $25 million for construction financing for affordable housing and a $5.9 million loan to complete a new sewage treatment plant at Royal Naval Dockyard.Another $36 million in construction financing was guaranteed by the Government for the Grand Atlantic housing scheme.