Kentucky Infrastructure Partners (KIP) has reached financial close with the University of Kentucky for the US$580 million Central Utility Plant (CUP) project in Lexington, Kentucky, USA.

The project encompasses the development of a modern CUP, including its design, construction, financing, operation, and ongoing maintenance, as well as extensive enhancements to the University’s district energy distribution network. Once completed, the upgraded infrastructure will provide increased heating, cooling, and emergency power capacity to support major campus expansion initiatives, including the growth of the University of Kentucky Albert B. Chandler Hospital and other critical facilities. Delivered through a long-term PPP, KIP will be responsible for designing, building, financing, operating, and maintaining the facility for approximately 30 years after construction, helping to ensure sustained operational efficiency, reliability, and performance.

The project includes:

• Construction of a new CUP providing steam and chilled water capacity,
• Installation of new distribution piping and system connections across campus,
• Modernization and optimization of existing utility systems to be performed by Optimum Energy, and
• Backup power infrastructure to enhance resiliency for critical healthcare operations.

The partnership includes:

• Plenary Americas and Walsh Investors as developers.
• Walsh-Turner DBJV as design-builder.
• NORESCO, LLC, as the operations and maintenance provider.

The project’s financing package comprises approximately US$424 million in tax-exempt Senior Revenue Bonds (Series 2026A), supplemented by sponsor equity contributions and additional funding sources, bringing the total capital investment to about US$580 million. Construction is scheduled to span roughly 35 months, with the project anticipated to be completed in 2029.