MSU Loan Limit for Dubai Campus Development Jumps to $5 Million

The Michigan State University (MSU) Board of Trustees recently approved a $1.5 million loan maximum increase for the Dubai project, which includes adding an MSU curriculum in the United Arab Emirates. The approval bumps the loan maximum to $5 million from $3.5 million.

According to excerpts from the article:

John Hudzik, MSU vice president of global engagement and strategic projects, said MSU still plans to operate within its original $3.5 million maximum originally negotiated with TECOM Investments, a subsidiary of Dubai Holdings, Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum’s company.

A higher loan maximum, Hudzik said, is in case MSU officials want to add more academic programs or students to its Dubai curriculum.

“If we feel a good, strong opportunity to expand arises, we want to take authority quickly,” he said.

MSU will have four undergraduate programs and three graduate programs available in the fall. The university expects 40-50 students per undergraduate program and 15-25 students per graduate program in the first semester, Hudzik said.

Corinne Reardon, budget officer for the provost’s office, said MSU has invested about $200,000 in Dubai so far. She said professors haven’t arrived in Dubai, and construction will likely begin next month, although MSU is still evaluating bids.

Reardon said the building and the start-up costs will likely be higher than projected because of inflation in Dubai, but officials don’t plan on using all of the proposed $5 million loan.

“Revenue from tuition generated by Dubai students in the first year should cover (the loan),” she said.

TECOM Investments jumped at the chance to loan MSU the start-up funds for Dubai, Hudzik said. MSU signed an agreement with the lender in September 2007.

“They want a top-flight American university there, and they see us as meeting those criteria,” he said.

MSU in Dubai will have 10-12 full-time faculty members from East Lansing’s campus to teach courses next fall, Hudzik said.

Read the entire article here.