Nelson Hospital Redevelopment

Nelson Hospital Redevelopment

The Nelson Hospital Redevelopment is expected to deliver a new building for the Nelson Hospital to increase capacity and structurally reinforce the facilities which have been assessed as earthquake prone. The project will be delivered in six phases.

Phase 1 of the project will deliver enabling works and design from 2023-2026 before Phase 2 will deliver the new Acute Services Building between 2025-2031. 

The initial scope of works for Phase 2 includes:

  • a new Emergency Department
  • 255 beds
  • eight theatres, and
  • an integrated energy centre.

Phases 3 to 6 include refurbishment and re-purposing of existing buildings and wiill be delivered between 2029-2033. 

  • Phase 3: Refurbishment of existing Inpatient Building (2029-2032) 
  • Phase 4: Refurbishment of Percy Brunette Building (2030-3032)
  • Phase 5: Refurbishment of George Manson Building (2030-2032)
  • Phase 6: Refurbishment of exsiting ED, Radiology, Day Stay and ICU/Mortuary Buildings (2031-2032) 


Key Dates

Aug 2023 Cabinet approved Option One for the Programme Business Case
Jun 2024 Expected Construction Commencement - Phase 1
Dec 2025 Expected Detailed Business Case Completion
Jun 2026 Expected Construction Commencement - Phase 2
Jun 2031 Expected Construction Completion - Phase 2
Dec 2033 Expected Construction Completion - Phases 3 to 6

Funding contributions

NZ Government

The project is expected to cost NZ$1.1 billion (A$1.02 billion) over 10 years. When originally proposed in 2016, the project was expected to cost between NZ$120 and NZ$150 million.


Nov 2018 NMDHA released an update on the indicative business case. The indicative business case update sets out a long list of development options, from which a short list will be chosen and then further analysed. The project is expected to cost around NZ$150 million (A$140 million).
Jun 2020 The Nelson Hospital building was rated a high risk in regards to fire, asbestos, and seismic restraint issues.
May 2022 The 2022 NZ Budget allocated NZ$1.3 billion towards the delivery of new health infrastructure over four years, including funding for the Nelson Hospital Redevelopment, however, did not specify the capital spend allocated to the project.
Jul 2023 The NZ Government allocated NZ$73 million (A$68 million) toward the project for design. The NZ Government also announced the project has a new expected capital cost of NZ$1.1 billion (A$1.02 billion) across 10 years. When originally proposed in 2016, the project was expected to cost between NZ$120 and NZ$150 million.
Aug 2023 The NZ Cabinet approved the Programme Business Case to deliver the hospital refurbishment in six stages at an estimated cost of $1.098 billion.
Aug 2023 The NZ Cabinet agreed to release $73 million of funding from the Health Capital Envelope to commence phase one - early and enabling works.
Aug 2023 The NZ Cabinet has approved the Programme Business Case for the Nelson Hospital Redevelopment at an estimated value of $1.098 billion. The approved option will see the hospital redevelopment delivered across six phases over a ten year period. Phase One - design and enabling works - has been approved to commence with $73 million of funding released from the Government's Health Capital Envelope. The Cabinet also approved for the progression of a Detailed Business Case for phase two of the project which would see the delivery of an Acute Services Building.
Nov 2023 The NZ Government issued a Request for Proposals for Cost Consultancy Services, closing on 5 December.
Estimated Total Cost
Procurement approach
Unconfirmed |
New Zealand |
Media releases