The Government has announced a $260 million funding package for Canterbury University, aimed at rebuilding its facilities and student numbers following the Christchurch earthquakes.
The money will fund a new science centre, as well as expanded and upgraded engineering facilities.
Since the February 2011 quake, which damaged much of the city centre, the university has lost the use of 10 buildings, had its student population decline by 15% and posted a $68 million loss.
On Thursday, it received a much needed boost to its 10-year plan, which it hopes ultimately will inject $4 billion in capital and operating expenditure back into the local economy.
It will also bring an additional 3000 domestic and international students into the region.
Prime Minister John Key said on Thursday that without the funding, the university's future would have been challenging and the loss of the tertiary institution would have been a tragedy for the South Island city.
Tertiary Education Minister Steven Joyce said generally, universities are expected to fund their own capital expenditure, but Canterbury University would have found it very difficult to recover without government support.
Vice-Chancellor Rod Carr said the university will live within its means and forecasts a return to surpluses from 2017.
Earlier in October, Mr Joyce announced an $18.9 million funding boost for Christchurch Polytech.
