Ministers approve Indicative Business Case for Dunedin Hospital rebuild

Media release

19 August 2017

The Chair of the Southern Partnership Group overseeing the Dunedin Hospital Redevelopment has welcomed Ministerial approval to build a new hospital for Dunedin at a cost of between $1.2 billion and $1.4 billion. 

“We are delighted to have the opportunity to provide Dunedin with a brand new hospital,” Mr Blair says.

The Government has approved the Partnership Group’s Indicative Business Case which narrows down the options to two preferred ones; a new Dunedin Hospital to be built on a new city site yet to be selected, or on Southern District Health Board’s Wakari site. The build is estimated to be completed in seven to 10 years.

‘The Partnership Group looked at all the possible options during the Indicative Business Case process, from fixing up the Ward Block and squeezing the new buildings on the existing site next door to the University facilities– to building the hospital from scratch on a Greenfields site,’ Mr Blair says.

“Identifying and analysing the options has been challenging.  We’ve had our moments - including the discovery that parts of the hospital were in a lot worse shape than first thought.  It became apparent it was going to cost more to shore up the Ward Block than it would be to build a new one.

Mr Blair says next steps are agreeing the preferred option, and, if it is building somewhere else in Dunedin city, finding and procuring a new site.

“A central city site has a number of advantages but if that is not possible we are fortunate to have the Wakari Hospital site,” Mr Blair says.

The new hospital is being designed to accommodate the health services and care Southern DHB has planned for patients for the next 40 to 50 years.

The project team is already doing preparatory work on the Detailed Business Case, the next phase of Treasury’s Better Business Case model which the project is required to follow. The Detailed Business Case will cover the detailed design, procurement, and construction phases of the project.

Sections of the Indicative Business Case have been redacted for reasons of commercial sensitivity.

Media contact

Andrew Blair

Southern Partnership Group Chair

andrew@blairconsulting.co.nz