The Minister of Health says Whakatane Hospital has been in dire need of an upgrade for some time.

The 65 million dollar re-development will result in a new emergency department with an attached short-stay unit, two new theatres and a procedures room, which can be converted to another theatre.

Specialist care units will have a total of 27 beds, in-paitent wards will have 66 beds, and there'll be another 26 beds for surgical services.
 
At peak construction it will create 80 jobs.

Tony Ryall says it's an important investment.

He says Whakatane Hospital needs an upgrade, and it's been on the books for quite some time.

He says the building is currently an earthquake risk.