Australia¡¯s richest university has temporarily pulled the plug on plans for a new campus in the country¡¯s largest urban renewal project, citing insufficient funds.

The University of Melbourne said it had made the ¡°difficult decision¡± to ¡°pause work¡± on construction of its engineering campus at Fishermans Bend near the Yarra River mouth.

Work was due to start this year to convert the 7.2 hectare site ¨C a former car manufacturing hub ¨C into a ¡°world-class engineering and design campus for large, experimental research, hands-on learning and collaboration with industry¡±, according to the university.

Construction has now been deferred for at least five years. Chief operating officer Katerina Kapobassis blamed ¡°a more constrained revenue environment driven by evolving regulations across the sector¡±.

91ÇÑ×Ó

In a statement, Kapobassis said ¡°careful financial management¡± was ¡°paramount¡± and the project would be ¡°reassessed¡± as part of the development of the institution¡¯s next 10-year strategy from 2030. ¡°The university remains committed to the precinct,¡± she insisted. ¡°This decision will allow us to better align with the timing of key government and industry investments.¡±

The university had net assets of over A$8.4 billion (?4.1 billion) and achieved a A$217 million surplus last year, according to the institution¡¯s latest annual report. But these figures masked a A$99 million ¡°operating deficit¡± once ¡°discretionary¡± investment income and one-off gains from property deals had been disregarded.

91ÇÑ×Ó

Melbourne is also vulnerable to federal government restrictions on the number of international students, whose fees constituted 32 per cent of the top-ranking institution¡¯s revenue last year. And an by the Victorian Auditor-General¡¯s Office (Vago) found that the entire Fishermans Bend project ¨C of which the university campus forms a small part ¨C was behind schedule because of the ¡°Covid-19 pandemic, reduced staffing and changes to government departments¡±.

¡°Agencies are not on track to deliver all projects and outcomes,¡± Vago reported in June. ¡°Many key planning documents are in draft or yet to be completed six years after the framework was released.¡±

The Australian Financial Review that only remediation, site clearing and foundation work had been completed on the campus site, which had been in the university¡¯s hands since 2018. It had originally been expected to accommodate at least 4,000 staff, students and industry partners by 2024, under a A$2 billion (?972 million) capital works programme.

By 2050, the dual-use site would boast 80,000 residents and 80,000 workers utilising facilities in advanced defence technologies, hydrodynamics, aerodynamics, robotics, autonomous systems and geotechnical testing.

91ÇÑ×Ó

A university spokesman said the proposed defence research would continue elsewhere.

john.ross@timeshighereducation.com