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THE Government finally confirmed it was spending £15m on the Universities at Medway project when the Thames Gateway Minister, Keith Hills, visited the Chatham Maritime campus to see some of the work.
Mr Hills praised the plan by the universities from Greenwich and Kent, plus the Mid Kent and Canterbury Christchurch University colleges, to increase the student numbers to 6,000 within six years.
He said: "I am here as minister for the Thames Gateway programme to announce the support of my government department of £15m for this project. We are over half way to developing the former naval dockyard."
The regional development agency SEEDA is providing another £8.6m, and Medway council £4m towards the cost.
The money is currently being spent to convert the former HMS Pembroke Drill Hall - where 137 young ratings were killed in First World War bombing raid - into Europe's longest library. The drill hall will be known as a learning resource centre.
Mr Hills described it as a "truly wonderful use of an impressive and historic building".
Gillingham MP Paul Clark said this year was the 20th anniversary of the closure of the dockyard, a major blow to the communities of the Medway Towns.
He said: "Having the universities here together, in true partnership, makes a substantial benefit to our towns. There are great opportunities ahead of us, and here we are taking them, doing it right."