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Greater scope for investment in long-term housing strategy, extended until 2023

On 8 November the Executive Board will discuss with the University Council plans to extend the period of the Long-Term Housing Strategy (LTSH) from 2021 to 2023. This will create greater scope for investment in order to finance the plans and initiatives included in the LTSH.

The additional scope for investment is due to the fact that the University of Twente will be able to reduce depreciation costs further over the coming years, while the accommodation costs passed on to users will remain constant. The fall in depreciation costs will occur because some buildings or parts of buildings (e.g. installations) will be fully depreciated in the coming years. By maintaining accommodation costs at a constant level, as expected, additional scope for investment will be created. This will make it possible to adhere to the principles set out in the LTSH, while also creating sufficient scope for other investments.

The need for a longer investment period is related to the following developments:

  1. The process of completing work on the new building for ITC, on the location of the Citadel building, will begin later than planned in the LTSH. It is expected that the new building for ITC will be ready at the end of 2020, at the earliest. The building will then be brought into use in 2021.
    The change will allow more time for the work needed, and more scope for investment. This is because some costs will be incurred later, and depreciation costs will also have fallen further.
  2. Both the renovation of the Technohal and the new building for ITC will require a larger budget than that foreseen in the LTSH. This is due to the current market situation and the associated adjustment in price indexation. Activity in the construction sector has increased sharply, leading to a shortfall in supply and a sharp increase in prices for materials and personnel.

The increased scope for investment will amount to a rise from €81 million to €109 million, allowing a number of adjustments and additions to the existing plans. The extension of the investment period to 2023 also means that a number of major maintenance projects, which had not been scheduled until after 2021 and were previously not included in the LTSH, can now also be reviewed.

Every year, current projects are included in an annual plan and the expected costs are incorporated into the university’s annual budget. The annual plan will be put before the University Council for discussion and approval in December, and will then be published online on the LTSH website:

drs. B.G. Lankhaar (Bertyl)
Spokesperson Executive Board