The Government has still not signed a contract with developer Gencom to renovate the Fairmont Southampton hotel — more than nine months after David Burt, the Premier and Minister of Finance, claimed that the deal was “done”.

A request for a special development order by Gencom has also still not gone before the House of Assembly — which adjourned last Friday and will not reconvene until mid-September.

Yesterday, a government spokesman confirmed that all parties were still “fully engaged in the necessary processes and extensive legal documents required to close on a project of this magnitude”.

The statement was issued after allegations from environmental groups that the Government was not being transparent about details of the deal.

In a letter to government MPs this month, Kim Smith, of the Bermuda Environmental Sustainability Taskforce, said the public were “being kept in the dark about critical elements of the deal”.

Ms Smith asked if the Government had increased its commitment to loan guarantees worth $75 million.

She also asked if the deal would be in jeopardy if the SDO request submitted by Gencom was turned down.

Responding to questions from The Royal Gazette, a government spokeswoman last night said: “The Government’s stated support for the redevelopment of the Fairmont Southampton is unchanged and remains a maximum $75 million guarantee, which was approved by the Cabinet last autumn.

“The senior financing for this project is the subject of private transactions between the developer and its lenders. Work continues with all parties fully engaged in the necessary processes and extensive legal documents required to close on a project of this magnitude.”

After the parliamentary session ended last Friday, the opposition One Bermuda Alliance urged the Government to provide details of the progress of Gencom’s controversial SDO application, which includes a proposal to build 147 residential units on the tourism-zoned property.

Craig Cannonier, the Shadow Minister of Tourism, said: “Like all other deadline dates this government has given on varying projects, the public has heard nothing from the PLP on the status of the Fairmont Southampton SDO.

“The minister extended the window for objections to the development until May 29. It is now almost Cup Match time and still nothing from the minister.

“The Government has stood on the premise that this project is of national importance and therefore we must have a sense of urgency to get it done. Thus far it feels like a snail's pace to completion.

“Surely, the public is due an update?"

Last night, a government spokesman said that the Minister of Home Affairs could approve the SDO before it went before the House of Assembly.

But the spokesman also outlined lengthy planning procedures that could cause further delays.

He said: “Following the public consultation is the assessment. Once the assessment is complete, the Department of Planning recommends to the Development Advisory Board whether the SDO should be approved or refused.

“The DAB then recommends to the minister, who ultimately makes the decision. Following the minister’s decision is the negative resolution procedure, during which the SDO can be gazetted at any time and does not have to wait until the House sits."

Mr Burt first declared that the $430 million deal had been agreed last October, just days before he faced a challenge for the leadership of the Progressive Labour Party.

He added that the contract was expected to be ratified and signed before Christmas. He told party delegates: “The deal has been done. The deal has been signed.”

He said: “What we are doing is getting to the closing process, which takes 45 to 60 days. It was very difficult due to market conditions. They have had to put more money into the deal. But that deal has closed and it is ready to go.”

There were no further progress reports until February. Mr Burt initially ducked calls for an update from opposition senator Douglas De Couto, accusing the OBA of “theatrics”.

But when later questioned in the House of Assembly by Cole Simons, the Leader of the Opposition, Mr Burt repeated his assertion that the deal was done.

He said: “There is a heads of terms, which was signed. The deal is done.

“We are working through the closing documentation. There are multiple parties in this transaction — two different lenders, the owners, Government of Bermuda, and also the local lenders so there is significant work and transactions.”

Mr Burt added that he expected construction work to begin at the site in the second quarter of this year and the resort to reopen by the end of next year — a timeline backed up by Gencom.

But when the first of those deadlines expired at the end of last month, Mr Burt failed to answer Royal Gazette questions about a possible revision of the timeline.

Yesterday The Royal Gazette e-mailed further questions to Mr Burt through the Government’s Department of Communications.

Last night the Premier responded, admitting that he had declared that “the deal is done”, nine months ago.

But he went on to say that media reports of a single contract between the Government and Gencom were “significantly misleading”.

He added: “That is what was done at that time. The continued reference to a single ‘contract’ in this complex $400 million transaction is significantly misleading. There are numerous agreements covering every aspect of this development, and this is a normal process in deals of this size and complexity.”

Asked if the Premier thought it was accurate to say that he has frequently given assurances and timelines on the project, only for those deadlines to be missed, a spokeswoman said on his behalf: “The Premier has given no assurances outside of the fact that the Government has reached an agreement for financial support from the Government and has delivered on the matters contained in the heads of terms agreed by the Cabinet in September 2022.”

The Gazette also e-mailed questions to Gencom, asking for a response to BEST’s allegations that the Miami-based company had not been transparent with the Bermuda public over its contract with the Government.

Last night, a Gencom spokeswoman said that a statement giving an update on the development would be released on Friday.