The ACT government is planning to spend up to $250 million to build a new Canberra Institute of Technology campus in the heart of Woden.
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Chief Minister Andrew Barr will on Thursday unveil plans for a new CIT campus at the site of the existing Woden bus station and former police station, off Callam Street.
The new Phillip campus would accommodate 6500 students a year and focus on cyber technology and service skills.
The campus would be built either alongside or on top of a revamped Woden transport interchange, which would cater to both bus and future light rail services.
The government expects to spend between $100 million and $250 million on the new Woden CIT, with the final cost to be known once scoping works are complete.
The campus would be completed by the mid-2020s.
Mr Barr will spruik the project as a major win for Woden town centre, forecasting a major economic boost for local businesses during the construction phase.
Labor is desperate to ingratiate itself with the local community, with the Woden-based seat of Murrumbidgee set to shape the result of next year's ACT election.
The announcement on Thursday comes five months after former vocational education minister Meegan Fitzharris revealed the government was examining options to relocate Reid CIT to a new site in Woden's town centre.
The University of New South Wales has long-held plans to redevelop the existing Reid site, along with a parcel of land on Constitution Avenue, to create a second Canberra campus.
The Reid CIT will remain open until construction of the new Woden campus is complete.
The government insists the training institute will retain a presence in the city centre once the Reid campus closes, although it is unclear in what form.
The Canberra Times last week reported that as the government prepared to announce its preferred location for a new Woden CIT, it was pressing ahead with the demolition of the training institute's former Phillip campus.
The former campus was shut in 2018 as part of CIT's modernisation strategy, which involved shedding surplus assets and ramping up its online offering.
The government is yet to confirm how the former site will be used, although Urban Renewal Minister Rachel Stephen-Smith has signalled that it would be retained for community facilities and won't be sold off for private housing.
Canberra Institute of Technology chief executive Leanne Cover welcomed the government's plan to build a new campus in Woden.
"The prospect of a new, state-of-the-art campus is incredibly appropriate for the advancement of vocational education and training in Canberra and the region," Ms Cover said.
"The announcement reflects [the government's] commitment to the best possible future for vocational education and training in Canberra and the region and recognises the essential role we play as the premier provider in the ACT providing skills for a modern workforce."