Interior works to begin on Warrnambool Base Hospital's Regional Logistics Distribution Centre

More than 220 tradespeople have worked to get it that far, with the majority of trades and materials used being sourced locally or regionally.

Minister for Health Mary-Anne Thomas today visited the supply and logistics warehouse at 1-5 Cooper Street, which would service about 50 health providers across the region once complete.

She said interior works would soon begin on the facility which was on-track for completion by the end of the year and expected to be commissioned in 2024.

"Today is a really important milestone," Ms Thomas said.

"It's an absolute beauty ... In really great news for the people who currently work at the laundry up at the hospital - I've had a look there and I've got to say, it's well due for replacement - all those people will transfer to work here and the expectation is this site will be able to deliver even more services and continue to grow the job opportunities available. "

Western Victoria MP Jacinta Ermacora said the purpose-built facility would be "state-of-the-art".

"There's nowhere else that's going to be using an Amazon-style pick-and-pack for the automated service delivery that's going to be coming out of this laundry and supply department," she said.

It's expected the building would also include smart rainwater capture features, a solar power system and electric vehicle charging stations.

The RLDC is part of a $384 million redevelopment of the Warrnambool Base Hospital, with the relocation of services to the new facility expected to free-up space for construction at the main hospital building.

That redevelopment would see a new multi-storey clinical services tower, an expanded emergency department, 22 additional beds, a new theatre suite, dedicated areas for pathology services and dialysis and more car parking.

Ms Thomas told The Standard the state government was working to the assigned budget.

"We have seen cost escalations in the building and construction industry but we work within the budgets that are allocated to get the very best value for the taxpayers of Victoria," she said.

"We actively manage each and every one of our building projects to drive that value so a budget has been committed to this project and we'll work to deliver to that budget."

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