The Sydney Marine Group is still waiting for the bulk of the government funding it needs to dredge the harbour.

Chairman Jim Wooder that said at the 11th hour on Thursday, the federal government asked for more technical information on the $38-million project.

"I've been asked some questions," said Wooder. "I'm going to respond and I'm going to wait for further direction."

The marine group had set Friday as a funding deadline because the dredging company needs to know whether the work will proceed this season.

By deepening the harbour, Sydney would be able to accept giant cargo ships that are too big for most ports. It would help the Cape Breton city position itself as a world-class shipping depot.

Wooder wants the federal government to pay the largest chunk of the dredging bill.

"If I was to comment on the mood, I would simply say that I'm pleased to know that the lines of communication are where they need to be," said Wooder.

The Cape Breton Regional Municipality has already agreed to contribute $2 million. But the Nova Scotia government has not acted on a request for the rest of the money.

Premier Darrell Dexter said he's waiting to hear from Ottawa because Sydney harbour is a federal responsibility.

"We stand ready to be of assistance, but it is predicated on a simple fact that this is a federal harbour," he said.

Dexter said the federal government has not responded to any of the province's inquiries about the dredging project.