Organisers behind the proposed West Otago Health Centre have met their $2.6 million target after receiving a $1 million grant from the Clutha District Council yesterday.
The grant to build a health centre would be loan-funded, to be repaid by ratepayers in the West Otago Health service area over 25 years. Construction was expected to begin in early July.
West Otago Health Trust chairman Allister Body said the project was ''totally reliant'' on the grant.
''With this grant we can now move forward ... we're pretty excited.''
Councillors approved the grant at a meeting yesterday, congratulating the trust and the West Otago community for the effort put into the project, including raising more than $310,000 in the past year. Councillor Jeff McKenzie, of West Otago, said the effort was ''marvellous''.
West Otago ward councillor Michelle Kennedy declared an interest as she is a member of the trust, and was not present during the discussion and decision-making.
In January, two Dunedin businesses - Cook Brothers Construction and Oakley Gray Architects - won the $2.4 million contract for the health centre.
Since then, the cost has increased to $2.6 million as $200,000 worth of variations have been added through the design development phase, Mr Body said.
He said the trust had enough money to meet the $2.6 million stage one construction costs, stage two of the project - a helipad - estimated to cost $10,000 would be paid for by the Mercer Trust and the Tapanui Volunteer Fire Brigade, but more money was needed for the third stage, equipment and landscaping.
The new medical centre, to be built on the grounds of the former Tapanui Hospital on State Highway 90, will include a 14-bed rest-home, offering the district's elderly residents a chance to stay in the town instead of in facilities in larger centres.
The centre is expected to employ between 20 and 30 people providing health services to more than 2000 people in West Otago and outlying areas.
