Health Minister Tony Ryall in Dunedin announced that Dunedin Hospital's neonatal intensive care unit and its acute mental health ward will be granted $24.4 million for renovation.

Earlier last week, $2.3 million funding for a four-bed secure unit at Wakari Hospital was announced. This funding was meant for people with intellectual disabilities.

The recent funding is a part of $38 million master-site project’s stage one of the project.

This project has been initiated to bring the most out of Wakari and Dunedin sites. It also aims at upgrading the present substandard facilities at the two sites.

Yesterday’s funding will also contribute in renovation of Dunedin Hospital's electrical switchboard and standby generators.

Mr. Ryall said that the grants will help in re-organizing "extremely crowded" conditions and the lack of privacy that the hospitals were facing.

The Board finance and funding General Manager, Robert Mackway-Jones said that full cost of the project should have been $25.1 million, but he also said that the funding will be utilized to its best for the execution of the projects.

In the first stage, upgrading project will be transferring acute psychiatric ward at Dunedin Hospital to Wakari Hospital.

Dunedin Hospital Chief Operations Officer Vivian Blake also expressed her joy over the funding.