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UPDATE 6.20pm:
South West Coast MP Roma Britnell said the planning was a start, but she was disappointed the project had not been fully funded. She also described the committee as a “political smokescreen”.
“The government is only doing half the job,” Mrs Britnell said. “We know what needs to be done and we know it needs to be done now. So why only partially fund this vital project?”
EARLIER: Warrnambool Base Hospital is set to get a long-awaited upgrade worth at least $112 million after the state government committed $7.5 million for planning and design works in Tuesday’s budget.
South West Healthcare CEO John Krygger described the budget commitment, which will set the hospital up for the next 50 years, as "wonderful news".
“This is absolutely fantastic news for our community and a cause for celebration during May Races week," Mr Krygger said.
"I couldn’t be happier with this government’s committment to stage two of the project."
The hospital upgrade will involve the expansion of both the emergency department and operating theatres, short-stay unit and pathology and radiology block.
Mr Krygger said he had "utmost confidence" that the funding meant the project would seamlessly progress through to the construction phase.
The masterplan for the hospital upgrade was first developed in 2005, and the CEO, who has been in the position for 14 years and will finish in the role at the end of June, said seeing the project come to fruition gave him "great personal satisfaction".
The opposition has already committed to fully fund the upgrade.
The Standard had reported that the hospital's emergency department had outgrown its intended capacity by more than 10,000 patients per year.
Western Victoria MP James Purcell, who pushed for the funding, said the project may be able to begin within 18 months.
“When we get the next $100 million it means we can just press the button,” Mr Purcell said.
“No government has ever got to this stage without completing the project.”
The MP said he would work to ensure that local jobs, including apprenticeships, would be created during the construction phase of the project.