Government Confirms CPB Contractors to Lead $1.88B Dunedin Hospital Project

Health Minister Simeon Brown has confirmed that CPB Contractors Limited has been awarded the contract to build the new inpatient building for the New Dunedin Hospital, securing the future of New Zealand’s largest-ever health infrastructure project.

A Landmark Commitment to Healthcare

The $1.88 billion New Dunedin Hospital programme represents the single biggest health infrastructure investment in New Zealand’s history. Spread across the former Cadbury site in central Dunedin, the project will transform healthcare delivery for Otago and Southland, ensuring modern facilities for generations to come.

Minister Brown reaffirmed that this government has taken decisive steps to restore confidence in the project after fears of a $3 billion cost blowout under earlier planning. “We’ve reset the approach and strengthened planning to ensure we actually deliver the safe, modern hospital that Dunedin and the surrounding regions deserve,” he said.

Economic Boost for Dunedin and Beyond

The hospital is not only a health project but also a major economic driver. Construction of the inpatient building is expected to create more than 900 full-time equivalent jobs, contributing an estimated $100 million annually to Dunedin’s economy during peak activity.

The building itself will span approximately 72,000 square metres, making it one of the most complex construction projects ever undertaken in New Zealand. CPB Contractors, which has extensive experience in both New Zealand and Australia, has already been collaborating with Health New Zealand’s design team on pre-construction activities, ensuring continuity and efficiency.

Oversight and Assurance

Given the scale and complexity of the build, a Crown Manager has been appointed to oversee the project and ensure that CPB delivers within time and budget constraints. Minister Brown stressed that this oversight mechanism reflects the Government’s commitment to accountability and successful delivery.

“CPB has the appropriate experience to manage a project of this size. With the Crown Manager in place, the people of Dunedin can have confidence this hospital will be delivered as promised,” he said.

Construction Timeline and Milestones

Work resumed on the Cadbury site in July, beginning with foundation and pile cap construction. A major visible milestone is expected mid-next year when a crane goes up, symbolising rapid progress. The inpatient building is scheduled for practical completion in 2030, with doors opening to patients in 2031.

A Hospital for the Future

The new facility is designed not only to replace ageing infrastructure but also to meet the needs of future generations. The hospital will be adaptable to changing models of care and evolving health demands.

“This Government’s record investment reflects our commitment to delivering a modern, fit-for-purpose hospital that meets the needs of future generations,” Mr Brown stated. “With the main contractor now in place, the people of Dunedin, Otago, and Southland can finally look forward to the modern, world-class hospital they need—and will now get.”