The Treasury has confirmed it will guarantee borrowing up to £292m to help finance the University of Northampton’s Waterside relocation project.
The scheme, which will see the university relocate to a new facility in the town centre, is set to begin construction next year and will be ready to receive its first students by autumn 2018.
Total funding required to complete the project is £330m, with up to £232m being raised through the issuing of a public bond, and £60m coming from the Public Works Loan Board.
Additional funding will come from the sale of existing campuses and the university’s cash reserves.
The project is the latest to be supported by the UK Guarantees scheme, which has previously focused on infrastructure projects such as Hinckley Point C and the £2bn Mersey Gateway crossing.
More than £3bn of infrastructure projects have been supported by the scheme so far.
Chancellor George Osborne 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.”