The new ward will have 16 beds as the old 1A at Dunedin Hospital does, but there the similarities will end.
Each of the 16 rooms will have its own en suite bathroom and rooms will look out on to a spacious garden.
Southern District Health Board facilities and site development manager Warren Taylor said three other projects at Wakari were under way - the revamping of conference rooms on the third floor and upgrading mechanical reticulation and lifts.
The new ward being built by Amalgamated Builders is in part of the hospital which has previously been used for radio therapy and later for intellectually disabled outpatients.
It has not been used for a couple of years.
A large project within the demolition work is the removal of the tonnes of concrete from the radiotherapy bunker.
The concrete has been cut into large blocks, ready for removal by crane once the roof has been removed.
The redevelopment will also include a central patient recreation area, dining room and offices.
The old ward space will be redeveloped for Dunedin Hospital senior management offices.
The space these previously occupied will eventually contain the redeveloped neo-natal intensive care unit and the paediatrics ward.
In all there are 16 projects in the $24.38 million redevelopment, which is expected to end in 2013.
So far the tenders approved have been ahead of budget.
