Construction of a new three-storey wing of Melbourne’s Northern Hospital is set to go ahead after the State Government has pledged $29 million for its construction.

Premier Denis Napthine said that the forthcoming State Budget would include the $29 million for the delivery of the hospital’s redevelopment.

“This major-upgrade will deliver an additional 32 beds and provide capacity for further expansion in the future,” Dr Napthine said.

“The population of Melbourne’s northern fringe has been growing steadily over the past decade and is expected to increase by a further 55 per cent between now and 2026.

State Health Minister, David Davis, said that the hospital’s redevelopment would be designed to allow for further expansions to take place in the future.

Construction of the redevelopment will start late next year, and is expected to be completed in 2016.