Prime Minister Dr Keith Rowley says the government has no plans to stop the construction of homes in Curepe at the site which is also home to the St Augustine nurseries.
Environmentalist, Dr Wayne Kublalsingh, and others earlier this month started a legal challenge to the project at the High Court in San Fernando.
The matter has been adjourned to next month.
Dr Rowley claimed that the building of homes by the state at the Curepe location will be pursued.
Dr Rowley said the state has satisfied the various requirements for such a development.