Douglas Borough Council says it remains committed to good engagement with the Treasury over the towns promenade refurbishment.
Council leader, David Christian, made the statement following comments in Tynwald suggesting relations between them, the Treasury and DOI were under pressure over the project.
Mr Christian added the local authority and government officials recognise the impact the initiative is having on businesses in the area but all parties remain committed to supporting organisations and residents whilst the work continues.
The revamp has come under recent scrutiny, with Infrastructure Minister, Ray Harmer MHK, revealing the job is around nine weeks behind schedule.
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