The money is part of a Ministry of Education infrastructure programme announced yesterday. Principal Bernadette Newlands was unaware of the grant, when contacted while on holiday in Bali yesterday.
''That is brilliant news. It is a fantastic old community school, but it is not set up for a modern learning environment,'' Ms Newlands said.
''We've had a steadily increasing roll, with considerable roll growth in the last few years.
''Our library has been used as a multipurpose space, so it could be a good chance to build some sort of new facility.
''We'll sit down with the school board of trustees and look at our long-term plans.''
Macandrew Bay had steadily increased its roll in recent years, from 112 pupils in 2004, to 157 pupils this year.
Macandrew Bay was the only Otago recipient from the $10 million for new buildings announced for 26 schools by Associate Education Minister Nikki Kaye yesterday.
Macandrew Bay School board of trustees chairman Matt Harcombe said yesterday a multipurpose indoor recreation and meeting space would be high on the priority list.
''We'll get feedback from the community and look at what will benefit our community and provide the best education opportunities for the children,'' he said.
The board can use the funding for any construction purpose, as long as it meets ministry legislative and design standards.
