Devlyn Australia has secured the contract for the Peel Health Campus (PHC) redevelopment forward works that include a new Central Energy Plant shell and additional car parking.

The Western Australia (WA)-based redevelopment project will cost approximately A$152m ($94m).

WA health minister Amber-Jade Sanderson said: "The Peel Health Campus returned to public hands in August 2024, and we are now getting on with the job of revitalising this important hospital.

"As well as this A$152m investment, a new community mental health and eating disorder centre to enhance services in the region is also being developed in partnership with the commonwealth."

The forward works also encompass adjusting and upgrading engineering services at the site.

This phase is seen as critical for the state government's redevelopment of PHC, which has been meticulously planned to ensure the hospital remains operational throughout the transformation.

The project will deliver additional mental health beds and a new operating theatre, among other features.

The hospital will gain 30 more inpatient beds, 12 extra chemotherapy chairs, and 15 new palliative care hospice beds.

To support this clinical capacity increase, new kitchen, pathology, and pharmacy services will be included in the redevelopment plan.

As part of the redevelopment, a new central sterile supply department, responsible for sterilising essential equipment, was opened on the site last month.

WA Premier Roger Cook added: "This major redevelopment will ensure Peel Health Campus can serve the Peel community for decades to come and it's fantastic to see that works are now underway.

"We know parking at busy hospital sites can be a major headache for patients and staff, which is why we are adding additional bays at PHC.

"These upgrades are part of my government's record investment in health, to deliver high-quality care for all Western Australians, regardless of where they live."