New Dunedin Hospital
Preferred bidder announced
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.
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.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
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.
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:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
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.
With both options, the estimated cost of the project is between NZ$1.2 billion and NZ$1.4 billion. In the 2018-19 Budget, the NZ Government set aside funding in contingency for the design and planning of the project.
In August 2017, the NZ Government approved the IBC. In May 2018, the NZ Government announced that the new hospital would be built on the old Cadbury Chocolate Factory site and parts of surrounding blocks. The Government bought the required land in June 2018.
The Southern Partnerships Group completed phase one of the detailed business case, which was approved in August. The second phase of the detailed business case will be informed by the master site planning and is expected to be completed by March 2019. The detailed business case will provide information on detailed design, financing, and a proposed timeline for major construction works. The previous NZ Government had planned to assess all options for procurement of the new hospital, including a Public Private Partnership (PPP). However, with the change in government in October 2017, the incoming Government announced that the project will not be delivered through a PPP.
In December 2018, the NZ Government announced a significant change to the construction approach. It will now be built in two stages, with the outpatient and day surgery building fast tracked to be finished more than three years earlier than anticipated and the larger inpatient building due to be finished five or six years after that. This change in construction approach acknowledges that the current Dunedin Hospital would not be able to deliver the required services over the original construction period. Previously, the new hospital would have been constructed in one go, to be open by mid-2026. However, the new plan is to open the smaller of the two buildings, the day surgery and outpatient building, in two stages; November 2023 and November 2024.
The new hospital is expected to be slightly bigger than the current one, with approximately 400 beds.
In February 2019 the NZ Ministry of Health announced that Underground Overground Archaeology will provide heritage advice for the buildings that are to be demolished. Scope Group has also been contracted for the demolition work and KPMG will be providing independent quality assurances for the project. Procurement is currently underway for key roles such as Design Manager, Project Manager, Structural Engineer, Town Planner, and Traffic Engineer.
The Ministry of Health is continuing negotiations to acquire additional land for the new Hospital.
Last reviewed: 15/02/2019