The University of California, Merced, is moving forward on a $1.14 billion campus expansion plan designed to use a public-private partnership to allow the newest campus in the University of California System to grow by 3,300 students.
UC Merced on Wednesday named international investor and infrastructure developer the Plenary Group as the lead developer on a project to increase the size of its campus by 2020. The plan calls for new facilities to be built within a 219-acre site currently supporting the existing campus. Under the public-private partnership, private companies will design and build new facilities, then operate them over a 39-year contract. Funding will include private financing from the developer, money from UC Merced and up to $600 million in revenue bonds issued by the University of California Board of Regents.
The UC Board of Regents approved the project's budget, commercial terms and other major elements in November. It will be reviewing conceptual designs and external financing this summer. Government and other public organizations are increasingly turning to public-private partnerships as ways to finance construction and infrastructure. UC officials hailed Wednesday's announcement as a possible model for the future.
“UC Merced, the youngest campus in our system, is poised to become a model for our other campuses as we look for the most efficient ways to construct, operate and maintain facilities that enable us to pursue our teaching, research and public service missions,” UC President Janet Napolitano said in a statement.
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