The committee has promised to hand over $250,000 for each of the next three years to help fund stage one of the master plan.

Stage one includes the building of a new community health centre and an upgrade of the urgent-care facility.

Port Fairy Folk Festival president Bruce Leishman said the festival was happy to provide funding in pursuit of improved health services.

“The health services board came to see us and our committee thinks this is a worthwhile project to fund,” Mr Leishman said.

“Due to the work of volunteers at our festival we have been able to accumulate money over the years which we can direct back into the community.

“We have provided a lot of funding for the hospital and health services over the years.”

Moyne Health Services CEO David Lee said the health services board was delighted by the support of the Folk Festival.

He said the Folk Festival had always been a huge backer of Moyne Health Services and the latest funding announcement further enhanced that.

“We approached the Port Fairy Folk Festival about six months ago about some funding for stage one of the master plan,” Mr Lee said.

“They are such a big part of the community and so generous and we cannot thank them enough for their continued support.”

Mr Lee said Moyne Health Services had applications in to the state government’s rural capital support fund. Moyne Health Services has applied for grants of $1.9 million for the urgent-care upgrade and $3 million for the new community health centre under the government’s rural capital support fund. 

He said the health services board was still waiting to see if it would receive the funding.

A spokesman for the state government said no decision on the funding had been made and no timeline was set on an announcement. 

In other Port Fairy Folk Festival developments, the final ticket release has opened for 2014.

Less than 10 per cent of tickets are available and they are expected to be sold quickly. 

The ticket prices for the festival are $250 for adults and $95 for youth (13-17).

This week the festival announced its latest round of performers for 2014, including Irishman Glen Hansard, country singer Beccy Cole and veteran Normie Rowe.