Infrastructure Minister Tim Crookall says his department needs more money to build a roundabout at the Balthane Industrial Estate.
In The House of Keys, he faced questions from Arbory, Castletown and Malew MHK Jason Moorhouse about the project.
Mr Crookall said a row of nearby houses had been bought and demolished as part of preparations.
But he said the project had now stalled after workers made a discovery on the site:
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