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Cabinet has agreed to fund up to $21.5 million to construct a new school on a site adjoining Mount Aspiring College, the Ministers said.

The new school, to open in 2010, will have a roll of about 540 initially, growing to about 650 over time.

"I'm delighted to able to make this announcement on behalf of the Labour-led government," David Parker said. "I know there has been a lot of discussion over the options for this school and I'm sure the parents, staff and Wanaka community are as excited as I am that we are ready to go with a new school in a new location.

"This area has been booming for some time, and a consequence of that is the need to cater for the extra school children in the region."

Population growth projections indicate there will be almost 900 primary students attending schools in Wanaka by 2026 - up 250 percent on the number attending primary school in the area in 2001.

Chris Carter said the $21.5 million price tag for the school took into account local factors such as the higher-than-average cost of building in Central Otago and the extra design features needed to ensure a high standard of education can be delivered.

"The option chosen will allow for design features such as flexible learning spaces and providing students with access to new information communication technology."

David Parker said spending a little more upfront on energy efficiency measures such as double-glazing would allow the school to save on operating costs in the long term.

"By incorporating sustainable design principles, the school can make efficient use of power and water, lessen the impact on the environment, and reduce running costs.

"Budgeting for thoughtful building design can also the school cope with its contrasting seasons - high temperatures in summer and cold temperatures in winter."

The Ministry of Education will now work with the board of trustees for Wanaka Primary School to progress the construction of the new school through to completion.

"The important thing is that this new school will ensure the quality of education for children who grow up in Wanaka is maintained at its highest level for many years to come," said Chris Carter.

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