Northern Tasmanian construction company Vos has won the tender for the $21.7 million library building at Inveresk.
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The first building as part of the new University of Tasmania's new campus at Inveresk, the library and student services building will be the hub at the centre of campus activities.
The library and a pedestrian bridge to link Willis Street with Inveresk are part of the first stage of the campus build. Two further buildings, one at Inveresk and a second at Willis Street, are planned under the campus master plan.
UTAS vice-chancellor Rufus Black said the project would have both direct and indirect benefits for the local community at a time when it was sorely needed, due to the pandemic.
"We are pleased to be supporting Tasmania now as construction moves ahead on this project," Professor Black said.
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"Alongside creating more educational opportunities and distinctive, contemporary campuses for Tasmanian students, supporting the regional economy has always been an important goal for the university and its partners."
The UTAS campus development is the centrepiece of the $451 million Launceston City Deal, which is supported by the federal and state governments, along with the City of Launceston council.
Federal Minister for Population, Cities and Urban Infrastructure Alan Tudge said the Launceston City Deal would be an essential part of the government's "job-maker agenda" to create and secure hundreds of jobs.
"It will help the University of Tasmania connect with the economy and lifestyle of the CBD, injecting life and a financial boost across the city," he said.
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The project will create about 430 jobs during construction, with 20 per cent of those jobs going to apprentices and trainees.
It will also create about 230 ongoing jobs.
Federal Member for Bass Bridget Archer said works on the first stage of the campus had already started, but significant works on the campus would start with the awarding of the tender.
Tasmanian State Growth Minister Michael Ferguson said the state government was pleased to contribute $60 million towards the campus relocation as part of its $119 million overall investment in the City Deal.
"Revitalising our city, boosting our economy and creating a more vibrant environment for students will also help generate many job opportunities from construction work, including apprenticeships, to academic and university support roles," Mr Ferguson said.
"This project is about connecting this campus to the heart of Launceston and sending a very clear message to young, and older Tasmanians education is for you."
Piling work and site work has already started for the library and bridge, which form stage one of the campus.