The Treasury confirmed today that it will guarantee borrowing up to £292 million for the University of Northampton’s Waterside Project, which will see the University relocating into a brand new purpose-built facility in the town’s centre.
The new site is located within the Northampton Waterside Enterprise Zone, designated to encourage local growth and create new jobs. Site remediation is already underway, with full construction due to begin next year. The University expects its 14,500 student population to start using the new campus in autumn 2018.
The total funding required to deliver the project is £330 million, with up to £232 million being raised through the issuance of a public bond and £60m coming from the Public Works Loan Board (PWLB). The remainder of the funding will be coming from the University’s cash reserves and capital receipts from the sale of existing campuses.
This is the latest project to be supported by the UK Guarantees scheme, which was set up to allow the UK government to act as a loan guarantor to major infrastructure projects. Over £3bn of infrastructure projects have now been brought forward as a result of the scheme.
Chancellor of the Exchequer, Rt Hon. George Osborne MP said:
I’m really pleased to see that the University of Northampton is proceeding with the Waterside Campus Project with help from the UK Guarantee Scheme and the Public Works Loan Board. Infrastructure projects that help to regenerate cities require huge financial commitments, and the UK is leading the way in finding innovative solutions to help these projects go ahead. This is an important part of our long term economic plan for Northampton.
The university is a vibrant part of the town, contributing £239 million to the local economy, and I look forward to seeing the new campus encourage further development of the Northampton Waterside Enterprise Zone.
Nick Petford, University Vice Chancellor said:
The government’s decision to guarantee our bond is a massive step forward for our campus development. Throughout the development of this project we have been working closely with our various partners, including the County and Borough Council, the Northampton Enterprise Partnership (NEP), the South East Midlands Enterprise Partnership (SEMLEP), HEFCE and HM Treasury, and it’s great to see that this collaboration is now bearing fruit. Our new Waterside Campus will help to continue the transformation of our institution into a world-leading centre for education, research and social impact.