Construction will proceed at the Caroline Bay residential development at Morgan’s Point under an agreement to revive its financing, the developers announced yesterday.

It came the day after Curtis Dickinson, the Minister of Finance, sounded the alarm over a “standstill” in financing for the development.

Mr Dickinson said the Government faced risk from its $165 million guarantee on the project.

The development is part of a complex at the former United States military base, which was downscaled last year after costs outpaced its financing.

Contractors linked with the project have gone unpaid, sources told The Royal Gazette this month.

A spokesman for the developers said: “Caroline Bay Limited, its board of directors, and board chairman Brian Duperreault, announced today that it has entered into an agreement which will provide the financing to continue construction of the Caroline Bay development.

“Since the outset of this project, our commitment to and confidence in Caroline Bay has been steadfast. We appreciate the patience that our construction partners have shown and are grateful for the ongoing co-operation and assistance of Government. We look forward to continuing the work at Caroline Bay.”

The developer declined to elaborate on the source or amount of the financing.