University of Idaho is entering a 50-year lease with Sacryr Plenary Utility Partners Idaho LLC on the steam plant as part of a public-private partnership, according to a news release.
The lease was approved by the Idaho State Board of Education today, the news release stated. The partnership, or P3 agreement, will allow UI to invest in student and research endeavors, UI President C. Scott Green stated in the news release.
“In addition to scholarship support that will improve the go-on rate in Idaho, the transaction creates a concessionaire-paid maintenance plan for our steam plant and utility system that will free up state funding for other projects,” Green stated.
Investing the net proceeds from the $225 million up-front payment is expected to generate $6 million annually for strategic initiatives, the news release stated. Some of the up-front payment will be used to develop a capital plan, some will be used to retire debt and the rest will be invested.
The university expects to invest $3 million in graduate student success and research, $1 million in recruiting new students and $2 million in student success initiatives, including scholarships and growing online education, the deal FAQ page stated.
UI will pay Sacryr Plenary Utility Partners Idaho LLC, the concessionaire, utility and operations fees annually, the news release stated.
The university expects the concessionaire to hire all qualified employees of the plant and offer compensation packages vetted by UI Human Resources, the FAQ page stated.
“A P3 is much more complex and mutually beneficial partnership agreement than strict outsourcing,” the FAQ website stated. “The university not only brings on a world-class utility operator as a partner that can bring best practices, but also provides a career path for our steam plant employees that the university cannot offer…”
Details on the transaction will be further developed over the coming months, the FAQ website stated.
Lex Miller can be reached at [email protected]