The Minister of Education, Seoule Simeon and Island Construction Limited signed a contract paving the way for construction to start.
The construction company has won the bid to build a two-story complex at a cost of over Vt156 million.
The building will contain a lecture theatre that can accommodate over 100 students, an additional classroom for about 40 students, a reception, a small cafeteria and administration offices.
The governments of New Caledonia and France, through the French Development Agency and the Vanuatu Government are funding the project.
New Caledonia is providing Vt38 million, Vt83, 500,000 from AFD while the Vanuatu Government will provide Vt35million including land to host the building.
Island Construction Limited is expected to complete construction within eight months.
The project is part of phase I of the construction of the National University of Vanuatu.
It will be followed by other phases that will provide additional infrastructure including equipment for science education, training and research.