Health Minister David Clark will announce the site for the rebuild of Dunedin Hospital this week. Clark will make the announcement on Friday in Dunedin.
Both National and Labour had committed to rebuilding the hospital at the last election, but National had said it would use a Public-Private Partnership for the build.
Labour has said that it will not use PPPs for projects in Health and Education and will pay for the hospital out of its capital expenditure budget.
A decision had been expected on the site earlier this month, but Cabinet delayed the announcement. There is speculation the hospital will occupy the site of the former Cadbury chocolate factory, which closed last year.
The project faced some disruption after labour took office, with Clark terminating the contract of the chair of the rebuild project, Andrew Blair and replacing him with former Labour Health Minister Pete Hodgson.
Labour’s election promise was for construction to begin on the hospital before the 2020 election.