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 One of the project will deliver a $73 million enabling works and design package.
The scope of works for Phase Two includes:
- a new inpatient building with 128 beds - 41 more than current capacity, an acute assessment unit, transit lounge and other dedicated spaces
- a new Energy Centre, and
- refurbishment of the George Manson Building and the ground floor of Percy Brunette once Assessment, Treatment and Rehabilitation services relocate to the inpatient unit.
Phases Three to Six include refurbishment and re-purposing of existing buildings and are expected to be delivered between 2029 and 2033.
An $11 million upgrade to the emergency department is also taking place.
Key Dates
| Dec 2029 | Expected Construction Completion - Phase Two |
Funding contributions
| NZ Government | |
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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. |
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Procurement
| Procuring Agency: | Health New Zealand Te Whatu Ora |
PROJECT HISTORY
| 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. |
| Feb 2024 | Te Whatu Ora Health NZ announced a Campus Master Plan was under development, and expected to be completed by mid-2024 alongside the concept designs of the project. |
| Jun 2024 | Te Whatu Ora Health NZ announced that the project's masterplan will be released soon. |
| Oct 2024 | The NZ Government has announced that construction has commenced on the emergency department component of the Nelson Hospital Redevelopment program. |
| May 2025 | The NZ Government announced that over half a billion dollars will be invested over four years in Stage Two of the project through the 2025-26 Budget, however the exact figure has not been specified. The Government also announced that the inpatient building will be complete by 2029 - two years ahead of schedule. |
Estimated Total Cost
(2023)
Sector
Social
Procurement approach
Unconfirmed |
Location
New Zealand |
Resources
Government resources
Redevelopment proposalBusiness case proposal
Indicative Business Case Ministerial Update
2023/08/03
