Australia’s New South Wales (NSW) Government has announced the advancement of the Grafton Base Hospital redevelopment with the appointment of Woollam Constructions to carry out early works.

The A$263.8m ($166.24m) project will see the transformation of the former Grafton Gaol site into modern administrative and training facilities for hospital staff while clinical services will continue at the existing hospital location.

The refurbishment of two administration blocks is part of the redevelopment plan, aiming to provide contemporary support facilities intended for hospital staff.

In addition, the site will host the Key Health Worker Accommodation for Grafton, funded by an A$34.2m allocation from the Northern NSW Local Health District under the A$200.1m Key Health Worker Accommodation programme.

This initiative will repurpose 36 units at the site to house health workers.

Refurbishment works are scheduled to begin in the next few months and are expected to be completed over several months.

The detailed design phase of the Grafton Base Hospital redevelopment is also underway and should be finalised soon.

The redevelopment includes the construction of a new three-storey building, featuring a new emergency department, medical imaging and MRI facilities, and an expanded day surgery and operating suite with two additional operating theatres.

The new building will also create space for the future relocation of maternity services and help to identify areas for potential further expansion.

The construction timeline for the main works will be established once the planning stage is completed and a main works builder is selected.

NSW health minister Ryan Park said: “It’s an exciting step forward we have a builder who will soon start early works to progress the Grafton Base Hospital redevelopment.

“It’s also a wonderful outcome this project will give new life to a part of the old Grafton Gaol, with space repurposed for non-clinical hospital administration and key health worker accommodation.”

Last month, the NSW government unveiled the appointment of a project team for the planning of the A$265m Port Macquarie Base Hospital upgrade.