Kentucky Infrastructure Partners Achieves Financial Close on UK Central Utility Plant Project

Kentucky Infrastructure Partners (KIP) today announced that it has reached Financial Close on the University of Kentucky Central Utility Plant (CUP) Project, a transformative infrastructure investment that will support the University’s continued growth, including the expansion of its healthcare, research, and academic facilities.

The project represents a total investment of approximately $580 million, and includes the design, construction, financing, operation, and maintenance of a new, state-of-the-art central utility plant, along with significant upgrades to the University’s district energy distribution systems. 

Financial Close follows Commercial Close achieved on May 22, 2026, and enables the project to move into full construction, with completion targeted in 2029. 

Supporting the Future of the University of Kentucky

The new Central Utility Plant will be a critical component of the University’s long-term campus infrastructure strategy. The project will deliver expanded heating, cooling, and backup power capacity to support major capital programs, including the expansion of the University of Kentucky Albert B. Chandler Hospital and other key facilities.

Under a long-term public-private partnership (P3) agreement, KIP will design, build, finance, and operate the facility for approximately 30 years following construction completion, ensuring long-term performance, reliability, and efficiency. 

Project Scope

The project includes:

• Construction of a new central utility plant 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.

Project Team

The KIP team brings together a highly experienced team of infrastructure and energy partners:

• Developers: Plenary Americas and Walsh Investors 

• Design-Builder: Walsh-Turner DBJV (a joint venture between Walsh Construction Group and Turner Construction Company) 

• Operations & Maintenance Provider: NORESCO, LLC 

Financing

The project is being financed through the issuance of tax-exempt Senior Revenue Bonds (Series 2026A), with an approximate par amount of $424 million, alongside sponsor equity and other funding sources forming part of the overall $580 million capital structure. 

Looking Ahead

Construction is expected to take approximately 35 months, with expected completion in 2029. Once complete, the new Central Utility Plant will provide the capacity and resilience needed to serve the University’s growing campus and the healthcare needs of communities across Kentucky. 

Quotes

“This milestone reflects the strength of the strong partnerships we have built to support the University of Kentucky’s future and our mission to advance Kentucky. By working with experienced partners, we can take on complex, transformational work that will strengthen our infrastructure, expand care in UK HealthCare and better serve the people of Kentucky for generations to come,” said UK President Eli Capilouto.

“Reaching Financial Close represents a major milestone for Kentucky Infrastructure Partners and our partners at the University of Kentucky,” said Alex Barrett, Vice President at Plenary Americas. “We are proud to deliver essential infrastructure that will enable the University to expand its world-class healthcare, education, and research mission. Through this partnership, we are bringing together proven expertise to ensure this critical system performs for decades to come.”

“This utilities infrastructure project is a critical first step in enabling the Chandler Hospital expansion, providing the essential foundation needed to support the next phase of growth across the University of Kentucky’s healthcare campus,” said Tom Caplis, senior vice president at The Walsh Group, representing Walsh Investors and Walsh-Turner Design-Build Joint Venture. “Work of this scale depends on strong partnerships, and we’re proud to collaborate with UK HealthCare and our project partners to establish the infrastructure that makes these transformative facilities possible.”

“This project will provide the critical infrastructure needed to support the future expansion of the University of Kentucky Albert B. Chandler Hospital and the University's continued growth,” said David Opalka, Vice President, Construction Executive, Turner. “Reliable power and resilient utility services are essential to delivering healthcare, supporting research, and serving patients every day. We are proud to work alongside the University of Kentucky, Walsh, Plenary, and NORESCO to create the foundation that will support the University's healthcare, research, and educational mission.”