The University of Louisville (UofL) has cancelled its utility systems P3 due to increases in interest rates reducing the economic benefits of the project, according to a source.

UofL launched its RFP - phase II last year (May 2022) for the upgrade and O&M of its steam, chilled water, electrical and related distribution systems with an August deadline.  

But earlier this year, the university pulled the project due to changes in the financial environment, the source said.

The university had issued the RFP phase I last February, seeking a private partner to FOM and periodically improve its utility systems.

A shortlist of 4 was announced the following April and the teams were led by the firms:

• John Laing
• Plenary
• Meridiam
• Engie

The preferred bidder was expected to manage and provide innovate solutions to:

• upgrade and O&M the utility systems
• develop capital improvement plans for the systems to drive efficiency, sustainability and reliability
• identify and deliver demand-side and plant efficiencies that can improve project economics and help meet CAP decarbonization targets

The university was slated to pay a utility fee to the concessionaire comprising fixed fee, O&M charge and variable fee components similar to its other energy projects.

In exchange, the partner would pay an upfront closing consideration for the 50-year concession that will be used to further UofL’s other campus priorities as well as to invest in the university’s foundation.

Advisers to the university were:

• EY – financial
• Hunton Andrews Kurth – legal

The university was contacted for a comment but did not respond by the time of publication.