New Dunedin Hospital detailed business cases

Publication date: 25 August 2021

Interim Detailed Business Case

The purpose of the Interim Detailed Business Case was to update stakeholders on the considerable progress towards building the New Dunedin Hospital (NDH) and seek Cabinet approval of Option 5 – an Inpatient Building on the former Cadbury Factory block and an Outpatient Building on the adjacent former Wilson Parking block. Other recommendations included:

  • noting the capital envelope of $1.40 billion would be exceeded
  • agreeing the construction of the Outpatient Building would be subject to approval of an Implementation Business Case to Cabinet
  • agreeing a final project budget being determined as part of approval by Cabinet of a separate Implementation Business Case for the Inpatient Building
  • providing funds for the continuation of design, project management and delivery of early works packages for both buildings through to December 2021.

Final Detailed Business Case

The Final Detailed Business Case (DBC) follows the standards and requirements set out under the Treasury’s Better Business Case guidelines and the standards and requirements advanced by the New Zealand Infrastructure Commission. On 24 August 2020 Cabinet approved a preferred option for the configuration of the New Dunedin Hospital; (Option 5) an Inpatient Building on the former Cadbury Factory block and an Outpatient Building on the adjacent former Wilson Parking block.

The Final DBC proposes construction of new facilities that will enable and support increasing demand in age-related services, modern flexible models of care, greater accessibility, standardisation and resilience. The new facilities will comprise 421 inpatients beds, 16 theatres (expandable to 20), 30 intensive care beds (expandable to 40) and increased ambulatory care capacity, including for day surgery.

This Final DBC sought Cabinet approval to increase the capital envelope of $1.4 billion to $1.47 billion. Joint Ministers of Health and Finance will consider Implementation Business Cases to align with the completion of further design stages and preferred contractor decisions for the Outpatient Building (February 2022) and the Inpatient Building (December 2023).

Cabinet approved the Final DBC.

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