ABERYSTWYTH University has said the £10m renovation of Pantycelyn halls “remains a priority” despite concern over whether the institution will be able to secure funding for such a project.

The university wants to spend £10.44m bringing the historic Welsh-language halls “into the 21st century” by September 2019, after several proposals to close it were greeted with large-scale demonstrations.

However, the university’s council has warned the financial situation at the institution could mean it would be difficult to secure loan funding for such a project if student numbers and associated income don’t rise.

Higher Education Funding Council for Wales (HEFCW) is “not expected to be in a position to permit the university to enter into a loan arrangement to finance future capital expenditure”, the university council heard at a recent meeting.

“Should the required growth not materialise, the university will be required to review its capital development aspirations so that the institution’s own reserves are reprioritised towards those projects which will provide best use of that money,” the university council said.

“The university will require loan finance in order to take forward the majority of its capital project aspirations, and HEFCW’s agreement to procure such finance will only be forthcoming once the university has achieved the required sustained growth in student numbers."

See this week’s south editions for the full story, in shops and online now