Project

Royal Melbourne Hospital and Royal Women’s Hospital redevelopment

PROJECT STATUS
Announced
Royal Melbourne Hospital and Royal Women’s Hospital redevelopment

The redevelopment of the existing Royal Melbourne Hospital (RMH) and expansion of the Royal Women's Hospital involves the consolidation of medical and health care services in Parkville. This includes a new campus and a Materials Handling Building. 

The original scope of the project was for a $2.3 billion redevelopment of two sites at Arden and Parkville. The Arden Hospital was originally intended to be the main development with a private sector-led development of a new Western Building located at Parkville. Following a review of the sites, it was announced in the FY2024-25 Victorian Budget that detailed investigation found the work required to mitigate Electromagnetic Interference (EMI) makes the site unviable for the development of a hospital at the Arden site. The Budget confirmed that the project would now progress to a single site in Parkville.

The scope of the Parkville building campus has not been confirmed, however it will contain a Materials Handling Building. 

 

Key Dates

Oct 2022 Project Announcement

Funding contributions

Victorian Government

Funding contribution from 2022, unchanged in FY2023/24 and FY2024/25 budget.

Procurement

Procuring Agency: Victorian Government

PROJECT HISTORY

Oct 2022 The Victorian Government announced the project ahead of the State's election.
May 2023 The Victorian Government committed $2.3 billion toward the project over twelve years in the 2023-24 State Budget, with $75 million allocated in FY2023-24.
Jan 2024 EOIs open for a Cost Planner for all 3 Parkville Arden Projects. EOIs also open for a Programming Consultant for all three projects.
May 2024 The Victorian Government indicated in its 2024-25 Budget that it would no longer proceed with works at the Arden Hospital site following a feasibility assessment. The Government stated that the work required to mitigate Electromagnetic Interference (EMI) makes the site unviable for the development of a hospital, meaning redevelopment of the existing Parkville site represents a better investment. The Government stated it would progress with redevelopment at Parkville, but did not provide details of the updated scope or timeframe for completion.
Estimated Total Cost
(2024)
Sector
Social
Procurement approach
Confirmed PPP | Traditional Procurement | Unconfirmed |
Location
Victoria |
Resources
Major Contract

Parkville Materials Handling Building

PROJECT STATUS
Under Procurement
Parkville Materials Handling Building

The decommissioning and demolition of the Materials Handling Building (MHB) on the Parkville site is the first project of works in the Parkville Arden Project.

The MHB package of works will occur in three streams: 

  • relocation of site precinct infrastructure from the MHB to other parts of the site.
  • relocation of site support services from the MHB to other parts of the site (or offsite), and
  • demolition of the MHB and associated boiler house.

Key Dates

Oct 2023 EOIs Open
Nov 2023 EOIs Close

Procurement

Procuring Agency: Victorian Health Building Authority

PROJECT HISTORY

Aug 2023 EOIs open for design consultant/technical advisor for the demolition of the MHB, closing 25 August 2023.
Oct 2023 EOIs open for the Materials Handling Building Decommissioning & Demolition Managing Contractor, closing 9 November.
Sector
Social
Procurement approach
Traditional Procurement |
Location
Victoria |
Resources
Major Contract

Arden Hospital

PROJECT STATUS
Prospective
Arden Hospital

The new Arden Hospital, which was to be built in the Arden Precinct would consolidate the Royal Melbourne Hospital and the Royal Melbourne Hospital's non-emergency services.

This project was cancelled by the Victorian Government in its 2024-25 Budget. The government indicated it would redevelop the facilities on the Parkville site instead.

The Arden Hospital includes: 

  • a new purpose-built hospital with a focus on planned surgery, ambultory care, low-risk birthday and clinical trails, and
  • significant complementary adjacent developments.  

The scope of works for the Arden Hospital - Stage One includes:

  • 400 new medical and surgical beds 
  • eight new surgery theatres
  • Intensive Care Units (ICU) / High Dependency Units (HDU)
  • medical imaging
  • outpatients
  • cardiac investigations
  • ambulatory care
  • maternity and birthing
  • ambulatory gynaecology
  • special care nursery, and
  • peri-operative care. 

Arden Hospital - Stage One will be delivered as a Public Private Partnership.

Key Dates

Dec 2025 Expected Construction Commencement
Jan 2030 Expected Construction Completion

Procurement

Procuring Agency: Victorian Health Building Authority

PROJECT HISTORY

Oct 2022 The Victorian Government announced the project.
Jan 2024 The Victorian Government released an EOI for a Architectural and Health Planning Adviser, closing 23 January 2024.
Feb 2024 The Victorian Government released an EOI for Engineering Advisory Services, closing 14 March 2024.
May 2024 The Victorian Government in its 2024-25 Budget indicated it would cancel the project following a feasibility assessment. The Government stated that the work required to mitigate Electromagnetic Interference (EMI) makes the site unviable for the development of a hospital, meaning redevelopment of the existing Parkville site represents a better investment.
Sector
Social
Procurement approach
Confirmed PPP |
Location
Victoria |
Resources