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MSU seeks loan increase for Dubai campus development

February 20, 2008

MSU in Dubai is seeking authorization for a $1.5 million increase to its loan maximum on the project, which officials said would allow for more flexibility in potential future expansion of the program.

The MSU Board of Trustees will vote at its meeting Friday on whether to increase the loan maximum from $3.5 million to $5 million.

John Hudzik, MSU vice president of global engagement and strategic projects, said MSU still plans to operate within its original $3.5 million maximum originally negotiated with TECOM Investments, a subsidiary of Dubai Holdings, Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum’s company.

A higher loan maximum, Hudzik said, is in case MSU officials want to add more academic programs or students to its Dubai curriculum.

“If we feel a good, strong opportunity to expand arises, we want to take authority quickly,” he said.

MSU will have four undergraduate programs and three graduate programs available in the fall. The university expects 40-50 students per undergraduate program and 15-25 students per graduate program in the first semester, Hudzik said.

Corinne Reardon, budget officer for the provost’s office, said MSU has invested about $200,000 in Dubai so far. She said professors haven’t arrived in Dubai, and construction will likely begin next month, although MSU is still evaluating bids.

Reardon said the building and the start-up costs will likely be higher than projected because of inflation in Dubai, but officials don’t plan on using all of the proposed $5 million loan.

“Revenue from tuition generated by Dubai students in the first year should cover (the loan),” she said.

TECOM Investments jumped at the chance to loan MSU the start-up funds for Dubai, Hudzik said. MSU signed an agreement with the lender in September 2007.

“They want a top-flight American university there, and they see us as meeting those criteria,” he said.

MSU in Dubai will have 10-12 full-time faculty members from East Lansing’s campus to teach courses next fall, Hudzik said.

“As we add classes each year, we’ll be revamping up toward a core faculty number, expected at … somewhere in the neighborhood of 40 full-time faculty,” he said.

It largely will be a personal choice for faculty that choose to go to Dubai, Hudzik said, adding that departments and colleges are in the process of making Dubai arrangements for their staff.

Educational technology professor Joseph Codde will be offering a graduate educational technology certificate to Dubai students, much like the one offered on campus.

Codde said one of the course’s unique features will be to make sure students can fulfill their International Computer Driving License, or ICDL, requirements.

The ICDL is an international program aimed to develop basic computer training skills that is strongly encouraged for Dubai students, Codde said.

“Officials in Dubai have mandated all educators will get the ICDL,” Codde said. “We want to review our program curriculum to make certain we’re meeting many of the standards that are in the ICDL program.”

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