The updates were announced by Health Minister Simeon Brown today as part of a nationwide infrastructure plan.
Wakari Hospital has come under the microscope on multiple occasions and has been plagued with issues.
Chief ombudsman Judge Peter Boshier had deemed ward 10A "not fit for purpose" and a “volatile environment” in a 2022 report on an unannounced visit.
Mr Brown's announcement said Wakari would be redeveloped as part of planned investment between 2025-2029 in mental health and addictions facilities.
No further details were given.
The new Dunedin hospital project has been beset delays amid cost-blowouts, redesigns and extended contract negotiations with Australian construction CPB.
Mr Brown said today the government would start work on the foundations while commercial negotiations continue on the main contract.
He said the government had started a tender process for the next stage of construction for New Dunedin Hospital’s inpatient building, with works to recommence on the former Cadbury site from mid-year.
An advanced notice had been placed on the government's tender website looking for complete the substructure for the building.
“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 commence 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.
As part of the broader announcement Mr Brown pledged investment in rural hospitals and hubs which would include a new rural hub for the Southern region planned for 2030-2034.
No further details were announced.
Brown lays out infrastructure plan
Mr Brown said the government's infrastructure plan - a single, long-term plan that lays out a clear pipeline for health infrastructure - was a first for New Zealand.
“Our health system is under significant pressure from ageing infrastructure that hasn’t kept pace with the needs of a growing and ageing population.
“The average age of our public health estate – 1,274 buildings across 86 campuses – is around 47 years. This is creating some significant challenges.
Buildings that require major remedial work to avoid service disruption.
Facilities with poor seismic ratings or serious compliance risks.
Outdated infrastructure that unable to support modern models of care.
Mr Brown said the state of New Zealand's health infrastructure was not a new challenge, but a problem that has developed over multiple decades. Addressing it requires a long-term plan to both renew existing capacity, and invest in new facilities, to meet future demand and ensure New Zealanders continue to receive high-quality care.
“The Health Infrastructure Plan identifies the more than $20 billion investment required to meet future health needs and introduces a more efficient way of delivering large hospital projects, called ‘Building Hospitals Better’.
“Instead of building single, large-scale structures, the plan proposes a staged approach – delivering smaller, more manageable facilities in phases.
"This will mean patients benefit from modern healthcare environments sooner, while providing greater certainty around delivery timeframes and costs.
The plan outlined a comprehensive, phased programme of hospital and facility developments across the country to be delivered in three to four stages.
"This includes major new builds and expansions across the country, featuring new acute services buildings, inpatient units, expanded emergency departments and wards, and upgraded facilities.
“It also includes the planning and initial build of the recently announced new hospital in South Auckland – a critical investment for one of the country’s fastest-growing regions."
