Bermuda College hopes to have on-campus accommodation for its students by 2001.

And the facility is now set to launch a massive fund-raising campaign to collect the $5 million needed to build the complex.

Although designs for the accommodation block have not been finalised, it is hoped that up to 140 students will eventually be able to work, rest and play within the college grounds.

College bosses are convinced that the project will encourage more Bermudian students to stay on the Island to complete their studies. And it is also believed that the student accommodation will make it far more affordable for overseas undergraduates to come to the Island to study.

Although the scheme will cost the college an initial outlay of around $5 million, it is hoped the housing will eventually pay for itself as revenue will come in the form of rents.

Last night Bermuda College Academic and Student Affairs vice president Dr.

Donald Peters confirmed that the board had now voted to go ahead with the development. Now a plan to raise the necessary cash is being drawn up and architects will soon be consulted about the final design of the project. The new board agreed to go ahead with the plan after carrying out a survey of teachers and students. Of those questioned 80 percent approved of the scheme.

"The question now is one of funding,'' Dr. Peters said.

"We are looking at a ballpark figure of about $5 million dollars. We have had some commitment from the private sector and we are confident that we can raise the money. As yet we haven't approached the Government but we will be approaching them.

"In order to provide Bermudian students with a complete education we need to create the proper environment.'' It is thought the residential unit will house about 140 students and should be complete by the start of the 2001 academic year.

While about 60 percent of the units will be used by local students the college hopes to increase its revenue by setting aside a section of the facility for foreign students -- at an increased rent.

"Just to give you an example, we get about 140 international students applying annually and we normally end up with about four because there's no space for them in Bermuda,'' Dr. Peters said.

College gearing up for on-campus housing Dr. Peters also said that the campus would also stop many Bermudian students going overseas for their education.

"There's this misconception that students want to leave the Island but what people don't realise is that Bermudian students leave because they want to leave home -- it's all a part of independence,'' Dr. Peters said.

College chairman and PLP Hamilton West MP Randolph Horton was playing down the project last night, saying that nothing definite had been decided.

But he did confirm that on-campus housing had been approved in principal by the board and it was something that the college was aiming for. He said a feasibility study would have to be carried out before any definite plans were made.

"We haven't firmly decided that, although the board has agreed in principal to move in that direction,'' Mr. Horton said.

"The survey of the business community and students and teachers was very positive but we now need to put together a plan.

"You can certainly say that this is a goal but as to what will actually happen we haven't come to any decision.'' Agreement in principle: College chairman Randolph Horton