The new building, housing a state-of-the-art pharmacy, pathology services, an education and learning centre, energy plant, engineering spaces and support services, will sit on the site where Eildon House and Edward Wilson House are currently being demolished.

Construction of the new $80 million building, the first outwardly visible sign of the hospital redevelopment which is the biggest building project in Ballarat's history, will begin before the end of the year.

The new central energy plant is a vital cog to the hospital redevelopment, as part of the Guaranteeing Energy Supply initiative ensuring hospitals can power themselves should anything go wrong.

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Stage one works in the redevelopment project, which relocated services from the buildings that are being demolished, have been completed with reception areas, reflection spaces, prayer rooms and consulting suites relocated and modernised.

"We've almost finished stage one of this redevelopment and now we are getting on with stage two, ensuring the community can access modern hospital support services including pathology, pharmacy and education that will be critical to the long-term success of the hospital," said Victorian health minister Martin Foley.

A tender is underway to appoint a builder to deliver the stage two central energy plant building, which is expected to be completed in 2024.

The overall redevelopment of Ballarat Base Hospital will include a multi-level tower with a new emergency department, a women and children's hub, state-of-the-art theatre suite and an extra 100 inpatient and short-stay beds.

Grampians Health chief of redevelopment and infrastructure Melanie Robertson said last month that there were challenges in juggling the building works around the need for the hospital to continue servicing the wider region at full capacity, including its bursting emergency department.

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Ms Robertson said since the redevelopment project was announced in 2018 and planning began, the goalposts had moved and some initial ideas had changed because of lessons learned throughout the pandemic, the findings of the Royal Commission in to Victoria's Mental Health System, and other additions including an alcohol and other drug hub to be built within the new emergency department.

Last month Grampians Health, in partnership with the state government, unveiled artists plans for the new emergency department which will shift the entire orientation of Ballarat Base Hospital back to a main entrance off Sturt Street - this time with a dedicated driveway to the ED.

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