Dunedin Hospital Redevelopment




PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
Dunedin Hospital Redevelopment
STATUS

Prospective pipeline

Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.

Credibly proposed

The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.   

Announced

The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.

Under procurement

The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).

Preferred bidder announced

A preferred bidder has been selected and is in exclusive negotiations.

Recently closed

Projects that have progressed to contractual close remain on ANZIP for 12 months.

ANZIP is focused only on major infrastructure activity, above the following thresholds:

Australia

Construction projects: > AUD$300m

Investable greenfield & brownfield: > AUD$100m

New Zealand

All greenfield and brownfield projects and divestments: > NZD $100 million


STATUS: Credibly proposed
VALUE: $1.276bn AUD | $1.4bn NZD
SECTOR: Social infrastructure
JURISDICTION: New Zealand
PROCUREMENT APPROACH: Traditional procurement
TYPE: Greenfield

Dunedin Hospital is a 388-bed tertiary hospital servicing the lower part of the South Island of New Zealand, operated by Southern District Health Board (Southern DHB). In 2015, the NZ Ministry of Health appointed the Southern Partnership Group to lead the redevelopment of the hospital.

The redevelopment of the hospital includes the construction of a new fit-for-purpose clinical services building, inpatient unit and ambulatory services. The project is the result of a number of buildings on the hospital campus nearing the end of their economic life, including the current Clinical Services Building built in 1960, which has increased the risk of operational failure.

In June 2017, the Southern Partnerships Group released the Indicative Business Case (IBC), which provided two preferred options for the redevelopment:

-A new hospital to be built on a greenfield site. The IBC did not propose a potential site, but it is expected the new hospital could be commissioned in February 2027; and
- A new hospital on the Wakari site, which is already owned by Southern DHB. This option will require demolition of existing buildings and decanting services on the site, which will add to the cost of the project and delay the delivery timeline. It is expected that the new hospital would be commissioned in December 2027.

With both options, the estimated cost of the project is between NZ$ 1.2 billion and NZ$1.4 billion.

In August 2017, the NZ Government approved the IBC. The Southern Partnerships Group has commenced work on the detailed business case, which will provide information on detailed design, financing, and a proposed timeline for major construction works. 

The detailed business case will also assess options for procurement, including the possibility of a Public Private Partnership (PPP). The previous NZ Government has stated that all options for delivering the project will be considered, including a PPP. The detailed business case is expected to be completed in June 2018.

Dunedin Hospital Redevelopment was identified as one of the first projects to be potentially delivered via PPP by the National Infrastructure Commission, which was a new agency to be set up, as an election commitment, by the incumbent Government. However, with the change in government in October 2017, the incoming Government announced that the project will not be delivered through a PPP.



Last reviewed: 04/12/2017

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