The WA Government has allocated an additional $50 million towards the long-awaited upgrades the Geraldton Hospital, bringing the total project cost to $122.7 million.
The McGowan government first promised to redevelop the Geraldton Health Campus, in the state's Midwest, ahead of the 2017 state election.
The plans include an expanded emergency department, a new intensive care unit and an integrated mental health unit.
The state government initially set aside $73.3 million for the project.
Health Minister Amber-Jade Sanderson said additional funding was needed after the tenders received for the bulk of the work came in "significantly over budget".
She said several issues hade contributed to the increased cost, including the building boom and Cyclone Seroja recovery efforts.
"We have a construction market that's particularly overheated at the moment," she said.
"Every single construction project, whether it's a government project or private sector, has faced delays.
"Not only have you got the double whammy of COVID, you've also got the rebuild required after Cyclone Seroja, so that has created significant cost pressures."
Project timeline 'determined by contractor'
The hospital redevelopment was initially expected to be finished by mid-2022.
But the project has been delayed twice, and is now due for completion in 2024.
Ms Sanderson said she's hopeful the project will remain on track.
"That will be determined by the successful contractor," she said.
"We'll work with them to make sure we can deliver this as quickly as possible.
Tenders for stage two closed in September, but the state is yet to award contracts.
"It's taken some time to work through availability of building companies to be able to deliver a project of this scale and in a timely manner," Ms Sanderson said.
Funding 'welcomed' by local member
Member for Geraldton Lara Dalton said she was pleased the state government has increased funding for the project.
"Any investment in the regions is always very welcome," she said.
"Just being able to access mental health facilities a lot easier, and also freeing up beds in the hospital."
