Remaining within the existing estate, the new buildings will provide ten wards for the hospital, which will be used in conjunction with the six modern wards located in the existing Paddock Centre, which is also being redesigned.
The development is being funded partly through the selloff of surplus land and listed buildings.
Colin Lamb, managing director of Kier’s major projects business, said: “We are committed to providing a hospital that will enhance quality, safety and security, as well as producing greater efficiencies for the trust.”
He added: “The new hospital will also provide an environment that allows trust doctors, nurses and other hospital employees to work more effectively and efficiently to deliver high standards of healthcare.”
Patients are expected to move into the new facilities in 2017, and the final phase of works will complete in 2018/2019.