After the approval from the Board of Regents, State of Iowa, USA of the PPP concession of Iowa university utility system, the University of Iowa has selected preferred bidder for the project. The authority is to enter into a 50-year partnership with ENGIE North America and Meridiam. A 50-year concession valued at more than US$1 billion USD to address the University of Iowa (UI)’s energy, water, and sustainability goals for two campuses spanning 1,700 acres in Iowa City, Iowa. These campuses together form one of the largest University footprints in the United States.

The selection of ENGIE and Meridiam followed a rigorous 10-month competitive bidding process, which involved university shared governance members and academic leadership. This partnership will allow the university to invest US$ 15 million per fiscal year via grants dedicated to supporting the UI’s strategic plan and core missions of teaching, research, and scholarship.

The UI will place the upfront payment from ENGIE and Meridiam into an endowment in order to acquire additional funding for institutional priorities. After paying off US$ 153 million in existing utility system bonds and US$ 13 million in consulting fees, the endowment will have about US$ 999 million.

Meridiam and ENGIE will be 50/50 partners in a new Special Purpose Vehicle that is locally resourced to deliver the requirements under the Concession Agreement. The team combines the global reference in low-carbon energy and services, ENGIE, with one of the leading long-term sustainable energy transition infrastructure investors, Meridiam. This partnership offers the University global resources, operational knowledge, and best practices needed to deliver crucial services while enabling the University to focus on its core missions in academics and research.

ENGIE will operate, maintain, optimize, and improve the on-campus utility systems for the University. The scope includes providing heating, cooling, and power to the campus through a dedicated network and managing high quality and sanitary water and storm sewer services.