After almost two years of delay, the project to develop Morgan's Point is on the front burner again, with the financial backers of the $290-million project meeting the newly-elected PLP Government ministers last week.

And in a new twist to the plot, the financiers now want to take control of the project from the company which originally won the bid to develop the 250-acre site.

The backers want Government assurances about such issues as environmental cleanup of the 250-acre site before going ahead with the project.

The project had been on hold before the November election due to uncertainty over which party would be in power. The project had also been delayed after Morgan's Harbour Investment Ltd. -- which had been picked to develop the 250-acre site in 1997 -- encountered difficulties in raising the money.

After The Royal Gazette reported financing had fallen through, the company's principals revealed last year that an unnamed partner had stepped in to save the scheme.

The Royal Gazette has learned that now the financing partner is set to take control of the scheme completely, potentially offering Morgan's Harbour principals a minority interest.

The partner will in effect be buying the scheme from Morgan's Harbour.

Morgan's Harbour spokesman Edward Lawrence yesterday said a series of meetings had taken place with Government ministers but refused to elaborate further.

"Nothing has changed since previous stories,'' he said. "We have had a financing partner for some time now.'' Bermuda Land Development Co. chairman Michelle Khaldun confirmed the talks had taken place and referred all further enquiries to Opportunity and Government Services' Minister Terry Lister.

Mr. Lister was off the Island yesterday.

Last week, representatives of the financing partner met in Bermuda with Finance Minister Eugene Cox, Development, Opportunity and Government Services' Minister Terry Lister, Tourism Minister David Allen, Transport Minister Ewart Brown, Home Affairs and Public Safety Minister Paula Cox, Environment Minister Arthur Hodgson, and Works and Engineering Minister Alex Scott.

Before committing to the project the financing partner wants assurances that its risk from waste oil dumped at the site by the US Navy will be limited if problems are later encountered. The financiers want a cap on the amount of liability they could face from any pollution remaining at the site.

Unnamed financial partner seeking Govt assurances The implication is that Government will then be on the hook for any potential liability in the future.

The financier needs the assurance before it can bring in other backers. The developer will have to spend millions of dollars cleaning up and reshaping the site before building can go ahead.

The partner also wants Government commitments over such issues as providing regular ferry transportation to the site.

Apparently, if negotiations are successful, the financiers are set to begin the project in six months after a formal development agreement is signed.

Morgan's Harbour proposes to build a championship golf course, a 200-bed cottage colony, a village centre, a marina, and 318 residential units.

Morgan's Harbour was formed by UK-based Renaissance Resorts International.

Six other companies competed to develop the site, includng runner-up BEAM Ltd, of Bermuda.