Government remains committed to seeing the Bermuda Homes for People project through, Government Senators announced yesterday.

However the Opposition called on Government to proceed with great caution as they negotiate further public-private initiatives and private financing initiatives, saying it would be a great ?tragedy? if the plan to build 196 homes at Southside fell apart.

Declaring the passion and commitment of the BHP is probably unrivalled on the Island, Government Senate Leader Larry Mussenden said the project ?will deliver?.

The BHP plan was always to build two types of homes at Southside: one set of 98 market-price homes, which would raise the capital used to build 98 affordable homes.

However the feasibility of the plan was called into question on Friday when it was revealed the BHP has been declared insolvent.

Backed up by Government Senators Neville Tyrrell and Junior Housing Minister Raymond Tannock, Sen. Mussenden called on the public to trust the words of Housing Minister Ashfield DeVent at a press conference over the weekend, ?rather than relying on ?, which he accused of glamorising a KPMG report given to this newspaper by the Opposition on Friday which showed the BHP is facing insolvency.

The BHP is now working with the Bermuda Land Development Corporation, a Government quango, to complete the project, Mr. DeVent said at the press conference.

?The project has never been at risk,? Sen. Mussenden declared. ?The BHP couldn?t get short-term financing, but are working on long-term funding.?

Saying that while he understood the BHP plan, Opposition Sen. Bob Richards added it was clear no financing had been in place. ?They needed money to build the fully-priced homes ... the ball is being fumbled.?

The state of affairs facing the BHP showed a ?profound lack of management?, he added. ?It also speaks to the performance of Cabinet ... their inability or unwillingness to state the truth,? he said in reference to Mr. DeVent and Premier Alex Scott?s attempts to deny financial problems at the BHP in the House of Assembly on Friday night.

Sen. Richards also questioned how the BHP could still be operating as it was insolvent.