LEXINGTON, Ky. — The University of Kentucky is moving forward with a $580 million public-private partnership to modernize its utilities infrastructure and lay the groundwork for a major expansion of the Albert B. Chandler Hospital.

The Utilities Infrastructure P3 project was recently approved by the Kentucky Legislature's Capital Projects and Bonds Oversight Committee. The partnership with Kentucky Infrastructure Partners will deliver a new central utility plant, connected distribution system and optimize existing equipment to provide heating and cooling across the growing campus.

"To serve the people across our Commonwealth, we must continue to grow," UK President Eli Capilouto said. "The expansion of Chandler Hospital is essential to meeting the healthcare needs of our state."

The infrastructure improvements are foundational for expanding Chandler Hospital with approximately 300 additional beds, along with supporting other major capital projects including the UK Markey Cancer Center, Michael D. Rankin MD Health Education Building, Martin-Gatton Agricultural Sciences Building and Agricultural Research Building.

According to Eric Monday, UK's executive vice president for finance and administration, the project is critical infrastructure that enables the institution's broader mission. "Without it, we cannot expand Chandler Hospital or support the growth in care, education and research that serves communities across Kentucky," he said.

The partnership approach allows UK to manage long-term performance and reliability while moving the project forward efficiently. Improvements include modernization of chilled water systems for energy efficiency, backup generators for Chandler Hospital to improve reliability, and additional utility piping to support new buildings on south campus.

Campus traffic, parking and transit impacts are expected during construction. The community will first notice changes tied to distribution piping work, including lane shifts along University Drive between Cooper and Complex drives beginning as early as mid-June. Starting in mid-July, permit holders should expect impacts to University Drive Garage near Cooper Drive. UK Transportation Services will manage these changes and provide regular updates.

Construction will occur in phases as the university and its partners finalize the agreement. UK selected Kentucky Infrastructure Partners through a competitive process, according to the announcement.