Construction of the state's $70 million Southern Remand Centre on the Risdon Prison site has not been delayed by COVID-19.
Corrections Minister Elise Archer the project continued to be on schedule, due to commence operation in late 2021, despite the challenges of the pandemic.
Once open, the centre will increase the capacity of the prison system by providing 150 new beds.
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"It's to modernise our correctional facilities, it's to meet future capacity demands and of course address some of our rehabilitation needs as well," Ms Archer said.
She said the stand-alone facility was important to manage different cohorts within the prison.
"It allows us to manage remandees, who let's not forget have not been convicted. They are awaiting trial or sentencing in many circumstances," Ms Archer said.
The construction phase of the project is expected to create 130 jobs and 50 ongoing jobs once operational.