Royal Hobart Hospital Budget

Mrs Armitage (Launceston) to ask the Honourable Leader of Government -

(1) (a) What is the total amount budgeted for the development of the new Royal Hobart Hospital?

(1)(b) Will the money allocated for the new Royal Hobart Hospital be sufficient to complete the work; and

(1)(c) if not, how much additional funding is expected to be provided to finish the new hospital project?

(2) On completion, will the Government be able to fully open the new Royal Hobart Hospital without further cash injection?

Answer from the Leader of Government, Dr Vanessa Goodwin:

Dr Goodwin replied -

(1) The total cost for the three phases of the RHH Redevelopment Project will be $657 million.

(2) Yes. The $657 million includes the additional investment of $71.9 million announced by the Minister for Health on 12 December 2014 and covers the costs of decanting, an improved design for Mental Health Services and the critical addition of the helipad.

Importantly, the budget for the RHH Redevelopment Project also includes approximately $45 million in contingency allowances.

A contingency allowance is a predetermined amount or percentage of the contract which is held for unpredictable changes in the project and is needed to reduce the risk of budget overruns.

(3) Not applicable.

(4) Yes, the redevelopment is scheduled for completion by the end of 2018 and will be operational shortly thereafter, with the funding allocated sufficie

nt to complete the capital works.

The redesigned redevelopment provides capacity for an additional 195 overnight beds”.

Answer provided August 18, 2015

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