Nanyang Junior College was selected by Ministry of Education in 2000 for an on-site re-development of its campus under the PRIME project. in which the Ministry of Education bored 95 per cent of the re-development costs. The three-phrase re-development work included construction of a new main building, which feature new science and computer laboratories, a new library, and four new lecture theatres. Lessons and administrative operations continued in the old building and subsequently in temporary tutorial rooms and offices as the works were carried out between 2001 and 2004. The reconstruction works were briefly halted in 2003 due to the bankruptcy of the main contractor, which also affected a number of residential developments in Marine Terrace. The college moved into the newly re-developed campus building in January 2004, and officially declared the completion of the redevelopment works in June 2005. A stone feature, on which wrote "饮水思源" was donated by Mdm Ho Won Ho on her retirement as the principal of Nanyang Junior College in 2005.