Construction of an East End development “is on time and on budget”, the finance minister announced this morning.

Curtis Dickinson told MPs that the St Regis hotel in St George’s is expected to open for spring 2021.

He added: “This project has and continues to provide jobs for Bermudians in the construction phase as well as jobs for Bermudians once the facility becomes operational.

“This is indeed a historic project for the tourism industry, the St George’s community and Bermuda as a whole.”

Mr Dickinson was speaking in the House of Assembly to announce the execution of the Government guarantee on behalf of Hotelco Bermuda Holding Ltd.

The guarantee relates to loans to finance development costs and expenses related to the construction of the resort.

A development agreement was signed with Hotelco before a groundbreaking ceremony in May 2017.

Mr Dickinson said that under the guarantee the Government cannot be legally required to fund more than $25 million to repay the lender should Hotelco be unable to fulfil its obligations.

He added: “The financing being guaranteed is provided under a loan facility maturing in 15 years.”

Mr Dickinson said that the Government would be compensated for providing the guarantee.

He added: “Also of note is the fact that initially the developer invested a greater sum of their own equity capital into the project and is a sign of good faith and a show of confidence, by the developers, in the viability of the project.”

Mr Dickinson said the Government guarantee relates to the bank loans and not the developer’s equity.

He said that as of September the total investment in the new development was $65 million and was “100 per cent funded by equity of the developers”.

Mr Dickinson said that the 120-room resort will include a casino, spa and golf resort.

He added that the resort “will potentially provide for many opportunities for local residents and businesses to participate first in the construction of the development and eventually in the running of this tourism facility in the East End”.

• To read Curtis Dickinson’s ministerial statement in full, click on the PDF under “Related Media”