- Government confirms construction contract for Dunedin’s new inpatient hospital building has been signed
- $1.88 billion rebuild will bring over 900 full-time construction jobs and boost the local economy
- Hospital expected to open in 2031 with outpatient building operational by late 2026
The rebuild of Dunedin Hospital has taken a major step forward, with the Government confirming that the construction contract for the new inpatient building has now been signed.
Health Minister Simeon Brown and Invercargill MP Penny Simmonds were in Dunedin for the signing event, welcoming the progress as a key milestone in delivering a modern hospital for the southern region.
Simmonds said, “This project means so much to the people of this province and beyond, and to see it progressing to the next stage is both positive and exciting.”
The new facility will be built by CPB Contractors Limited, who have been working with Health New Zealand on early design and pre-construction planning. “We have made a commitment to the people of the South that they will get a modern, fit-for-purpose hospital, and this latest development confirms that,” Simmonds added.
The Government says the $1.88 billion programme is New Zealand’s single biggest health infrastructure project. It is expected to provide more than 900 full-time jobs during peak construction and generate around $100 million annually for Dunedin’s economy.
Minister Brown noted that the project had faced cost blowouts under the previous government’s plans but has now been reset. “Under the previous government’s plans, the project risked a $3 billion blowout. We’ve reset the approach and strengthened planning to ensure we actually deliver the safe, modern hospital that Dunedin and the surrounding Otago and Southland regions deserve.”
Construction at the former Cadbury site resumed in July, with foundations and pile caps already underway. A crane is expected to go up by mid-2026, with the inpatient building reaching practical completion in 2030 and opening to patients in 2031.
“This Government’s record investment reflects our commitment to delivering a modern, fit-for-purpose hospital that meets the needs of future generations and can adapt to changing models of care,” Brown said.
The hospital’s Outpatient Building is also on track, with completion due in July 2026 and operations beginning in October that year.
With the signing of the contract and a main contractor now confirmed, the Government says the region can finally look ahead to a long-awaited facility that will serve the South for decades to come.