South Australian Premier Mike Rann has firmly reinforced plans to replace the Royal Adelaide Hospital, with an health research centre, worth $200 million, to be built adjacent to the site.
Last week's release of the Federal Budget has brought to $1.7 billion the total funding allocation of the hospital project, first announced by the Rann government in 2007. The new South Australian Health and Medical Research Institute is to be staffed by 700 local and international research personnel and is expected to be operational by 2012, four years before the projected completion date for the hospital.
Commencement of construction on the new health precinct is still on hold, as the Department is still seeking expressions of interest for a public-private partnership.
A statement on the RAH website by Derek Exton, Director of Asset Planning, RAH, has highlighted issues of underlying infrastructure as a key reason for replacing, not renovating, the hospital.
"The services that provide it with power, provide it with water, take away its waste, provide it with communications, provide it with heat and cooling...were installed in the late ‘50s, early ‘60s, they’re at the end of their life," Mr Exton said. "The site is too small, is too congested, too full of buildings."
Health Minister John Hill has dismissed concerns about the viability of the schedule for the Institute.
"Our ambition is to have it built through a PPP process and we'll be going out to the market some time in the middle of this year for expressions of interest," Mr Hill declared at the launch of the Institute. "Whatever happens, it will be built."
Treasurer Kevin Foley, has backed his cabinet colleague. ""Construction will begin, we hope, certainly contracts let for the new medical research centre certainly before the election and that will be the first component of our hospital."
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