Dunedin Hospital redevelopment project

The Government is building a new hospital in Dunedin.

Find out more on the New Dunedin Hospital website

Dunedin Hospital redevelopment project

Replacing the existing Dunedin Hospital will involve the single biggest hospital build ever in New Zealand – costing up to $1.4 billion.

It will be the most modern hospital in New Zealand, serving the people of Dunedin and the lower South Island for decades to come.

Patients can expect high quality facilities, a better layout of services, modern lighting, more green space and improved signage. The estimated floor area is around 100,000 square metres of new build.

Health systems are evolving and the new hospital will support new models of care which will better meet the community’s future health needs.

A rebuild of this magnitude in central Dunedin will have a big impact on the CBD, creating many opportunities for the community. At its peak, there will be up to 1,000 workers on site.

Site confirmed

On 1 November 2018, the Ministry purchased a large block of land, the former Cadbury site. We also made formal moves to acquire a large neighbouring block of land known as the ‘Wilson Block’.

The CBD was chosen for the new hospital because the land is flat, close to the existing hospital and the University of Otago, and can be easily accessed by public transport. 

Aerial map showing locations where new hospital will be built

Two staged approach

The new Dunedin Hospital will be built in two stages to help relieve pressure and enable the existing hospital to better service the people of Otago and Southland.

Part of the project will be prioritised to build the smaller outpatients and day surgery first. This will enable some services to start operating earlier – approximately November 2023 for day surgery and November 2024 for outpatients’ clinics.

The current hospital does not have adequate day surgery capacity, and this is a key driver of the decision to adopt a two staged approach.

This approach also recognises the need for labour workforce flexibility. Around 350 workers will be needed at peak construction of the outpatients and day surgery building which is more manageable.

The acute inpatient building is expected to be completed in about a decade. 

Ministry’s project team update

The Ministry of Health’s New Dunedin Hospital project team is making good progress on a number of key procurement roles as the project ramps up.

Requests For Proposals (RFPs) for a Design Manager and a Project Manager have been issued to the market on the Government Electronic Tender Service (GETS).

RFPs have also been issued for a Structural Engineer, Building Services Engineer and a Fire Engineer.

The Design Manager will ensure the next stages of design development are completed within programme timelines and to a high standard.

The Project Manager’s first task will be to develop a strategy for the demolition of the Cadbury factory.

There will be a comprehensive selection process for these roles. Bidders will be given a month to prepare their detailed bids, which will be followed by an evaluation process and interviews with shortlisted candidates.

The designers and consultants for the next stage of the project are expected to be appointed by Easter.

Submissions for the Town Planner role are currently being evaluated. Procurement of a Traffic Engineer for the project is also underway.

KPMG has been engaged to provide independent quality assurances oversight of the project, and Underground Overground Archaeology are providing initial heritage advice for the buildings the Ministry now owns and needs to demolish.

Scope Group has been confirmed as the contractor for the demolition of two derelict buildings on the Cadbury car park site. It is anticipated that these buildings will be removed in the next few months for health and safety reasons.

The Ministry also continues to progress site acquisition negotiations to source the final land plots needed for the new hospital.

An architect’s rendering of a day surgery/outpatients building. This is a concept image. The design of the building is yet to begin.
An architect’s rendering of a day surgery/outpatients building. This is a concept image. The design of the building is yet to begin.

Business case

A number of commissioned reports and assessments of current health services and structures at the Dunedin Campus informed the Indicative Business Case (pdf, 1.9 MB).

They show deteriorating and inflexible facilities are impacting on the quality of care provided to Southern communities, and Southern DHB faces a number of challenges due to its size, location and demographics, including low population growth and an ageing population.

The Ministry of Health is now working closely with the Southern Partnership Group and Southern DHB on the Detailed Business Case which will cover the detailed design, procurement, and construction phases of the project.

Interim works

Southern DHB is progressing a programme of re-fits and upgrades to ensure clinical services can continue while the longer term redevelopment is carried out. More information is available on the Southern DHB website.

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