The former Cadbury’s site has been in limbo for several months since Health Minister Simeon Brown announced in January the government would push ahead with a new inpatients building at a cost of $1.88 billion.
The project has been beset with delays amid cost blow-outs, redesigns and extended contract negotiations with Australian construction giant CPB.
However, yesterday, Mr Brown said the government had started a tender process for the next stage of construction for the inpatient building, with works to resume on the site from mid-year.
An advanced notice had been placed on the government’s tender website looking for organisations to complete the building’s substructure.
"The substructure is the vital foundation of the main hospital structure that will follow, and includes the installation of the lower slab, concreting and plinths for the base isolators.
"Capping of the 324 piles on the site will begin mid-year, followed by work on the perimeter of the basement to form the base for the substructure.
"The third part of the process will be installing the base isolators and then the frame of the main construction.
"Work continues to ensure the design of the inpatient building will deliver health services effectively for generations to come.
"While this continues, I look forward to seeing the physical progress of the hospital take its next steps from mid-year once the tender is awarded."
The update also included mention of private financing for health project carparks, including one for the new Dunedin hospital.
Former health minister Pete Hodgson, who led the early stages of the project, said the announcements were "inevitable and overdue".
"It is inevitable because sooner or later the piles will need to be properly capped to avoid weather deterioration.
"It is overdue because it was always able to be separated out from the main contract, just as the piling itself has been."
Mr Hodgson said the ministers should have announced this tender process when they "rode into town" last September to announce they were pausing the project.
"Instead, they bought into the crazy idea that the existing ward block could somehow be ‘re-lifed’ and serve as a hospital at the same time.
"Seven months have been lost, just on this tiny next step."
Mr Hodgson said the main contract with CPB was scheduled to be signed about July last year.
"It still hasn’t been. Nor has a replacement programme director been identified.
"In short, we know what will be built, but we don’t yet know how it will be built."
Former head of the emergency department Dr John Chambers said yesterday’s announcement had little new to it.
"But all the steps to bring about many of the plans have yet to be taken such as submitting business cases, tendering. The only really new aspect regarding new Dunedin hospital was the carpark stuff, which will clearly be a PPP [public-private partnership] sort of arrangement around the country."
Dunedin Mayor Jules Radich said yesterday’s announcement was a welcome sign of progress.
"Once built, the hospital will provide modern, fit-for-purpose healthcare for our communities, as well as helping train the next generation of medical specialists and ensuring resilience when disaster strikes.
"That’s why our council stood with people across the South when the future of our hospital was threatened and watching the inpatient building rise from the ground in the heart of our city will be a tangible reward for that collective effort."
Mr Radich said he was given advance notice by Mr Brown of the announcement, which was also appreciated.
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