The beginning of construction of the Outpatient Building was marked at a ceremony in Dunedin on Friday 3 June 2022.

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“Covering two city blocks, the New Dunedin Hospital is one of the biggest infrastructure projects ever undertaken in New Zealand,” Health Minister Andrew Little said.

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"It is a real pleasure to be in Dunedin to see work on the new hospital under way."

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Dunedin’s new hospital is being built on the site of the old Cadbury chocolate factory. The building will meet 5 Star Green Star accreditation, with features like double-glazing and low-energy intelligent lighting systems that use natural daylight instead of artificial lighting whenever possible.

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The first stage of the project, the Outpatient Building, is on schedule to open in 2026. The inpatient building will open in 2029.

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The construction phase is expected to create hundreds of jobs and add $429 million to the local economy.

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During the ceremony mana whenua, Ministry of Health, Southern District Health Board and Community Health Council representatives contributed items to a time capsule, created by Farra Engineering Ltd, that will be buried beneath the new hospital.

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The contents of the time capsule include:

• An ipu bowl for maukoroa paint, supplied by mana whenua, to represent the significance and importance of the building
• A Toroa (albatross) feather, supplied by mana whenua
• COVID-19 Rapid Antigen Test (RAT) supplied by Minister of Health Andrew Little, to represent that we are currently in the COVID-19 pandemic  
• Central Otago schist from Clutha River, to represent the wider Otago Region that will benefit from the hospital. Supplied by Senior Responsible Owner Helen Telford (Ministry of Health)
• An 1800s Carew bottle supplied by Pete Hodgson, Chair of the Southern District Health Board (unearthed by New Zealand Heritage Properties)
• A list of the Community Health Council members, supplied by Chair Karen Browne
• A drawing of a dream hospital (including a Pokemon Arena) designed by seven-year-old Tama Russell-Sullivan
• COVID-19 pandemic experiences written by Southern District Health Board staff
• A selection of recent compliments sent to Southern District Health Board staff by patients and whānau
• A 1737 ‘Need to Talk’ pin supplied by Labour MP David Clark
• Hand sanitiser, supplied by Labour MP Ingrid Leary
• Contemporary currency: $2, $1, 50c, 20c and 10c coins
• A magnet with pāua Toroa from the Dunedin Visitor’s Centre
• Brochures from the Dunedin Visitor’s Centre
• A copy of the Otago Daily Times pages from May 5, 2018, with the front-page story ‘Support in South’ about our new hospital
• A wooden ‘crunchie bar’ from Crunchie Mountain in the old Cadbury building