The planned redevelopment of Port Castries, financed by Royal Caribbean International, appears to have gone cold after Prime Minister Kenny Anthony announced that he was not prepared to work with one of the financiers.
Details of the project were announced three years ago by the former United Workers Party administration in a joint statement with Royal Caribbean.
The cruise company partnered with a number of investors on the project.
However, former Prime Minister Stephenson King recently claimed that Royal Caribbean had decided to scrap the project and move to Barbados where the port is undergoing a major redevelopment.
The Barbados development is reportedly a US$300-million project.
When asked for his government's stance on the issue, Anthony told reporters that he made his position on the project clear at a recent meeting with a representative of Royal Caribbean.
He said at that meeting he was astonished to learn that well-known international developer Antonio Assenza was a shareholder in the company planning the redevelopment of Port Castries.
According to Anthony, it appears that Antonio Assenza has his hands "in pies all over the place".
"First of all, there are two major road construction contracts in St Lucia awarded to his company. Then he was selected as the major financial coordinator for the redevelopment of the Hewanorra International Airport and on top of that, his company is at the centre of the redevelopment of Port Castries," the PM said.
"I made it absolutely clear to Royal Caribbean that the St Lucia government will not be able to work with Antonio Assenza on the Castries Port redevelopment project and a new partner had to be found."
However, Anthony also said his administration is committed to the project.
"You must never ever forget, that whole redevelopment started actually started with a report prepared years ago by the former labour administration, so we sensitively understand there is need to transform Port Castries.
"In addition to that, the structures built on the port are no longer needed because of the transformation of goods, through the introduction of containerised cargo, so we have interests, but clearly the government of St Lucia will not work with Antonio Assenza," he said.
Under the Castries port redevelopment agreement signed between the former government and Royal Caribbean International, the cruise company has pledged to fund part of the deal at an estimated cost of US$20 million to US$25 million.