A new $70 million remand centre at Risdon Prison will increase capacity and create jobs, Corrections Minister Elise Archer says.
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She announced on Thursday that Hansen Yuncken would be the managing contractor for the project.
Ms Archer said construction would start in March next year and Hansen Yuncken had a proven track record in building Tasmanian infrastructure making them the ideal contractor to oversee the building of the 140-bed centre.
"Early works for the project, including fencing, temporary roadworks and levelling of the site were recently completed by Hazell Brothers.
"With completion expected by the end of 2021, the southern remand centre will significantly increase the capacity of Tasmania's prison system and provide better conditions for remandees, allowing separation from the general prison population.
"We are committed to keeping Tasmanians safe and strengthening the economy, with more than 130 jobs expected to be created during construction and 50 ongoing jobs created once fully operational."