Work to pull down and the refurbish the Garran Surge Centre will cost $8 million, the government says.
The surge centre was built in just over a month on the Garran Oval more than three years ago as part of the ACT's response to the COVID-19 pandemic.
Of that money, $4 million will go towards pulling the building down, and another $4 million is towards redeveloping the oval.
The community will need to wait until mid-next year to use the oval as restoration work continues.
Earlier this year The Canberra Times revealed the centre, which was intended to be used as a overflow hospital for COVID patients, was not suitable for treating infectious COVID patients.
Health Minister Rachel Stephen-Smith thanked all frontline staff who had been based at Garran, which served as a walk-in clinic, COVID testing site and vaccination centre.
"The local community has been incredible in its support these past few years, patiently waiting for the Garran Oval to be returned and the Critical Services Building to be built. I sincerely thank them for this," Ms Stephen-Smith said.
The company Manteena was awarded the contract to pull down and recycle the surge centre and the government said it expected work would be completed by the end of the year. About 25 people would work on the project.
Another contractor would remediate the oval and restore the south-west car park, the government said.
Ms Stephen-Smith said the Garran community would have a better oval than it had before the pandemic.
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The $4 million oval upgrade would include a new cricket pitch, LED lighting and a "drought-tolerant grassed playing surface", the Health Minister said.
The ACT budget included $8 million to remove the surge centre, which closed on February 28 when the ACT dropped its COVID management declaration.
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