A leaked cabinet-in-confidence letter from Minister for Health David Davis to then premier Ted Baillieu has confirmed state government concerns over delays to the $630 million Bendigo hospital project as far back as December last year.

In the letter Mr Davis provides a new timeline for the hospital project and raises concerns that the proposed Best and Final Offer process could delay settlement on the project by up to two months. “This may jeopardise the achievement of the announced 2016 completion date, although it is expected it may still be achievable,” Mr Davis wrote.

“Any further delays, however, will likely result in the 2016 completion date not being achieved.”

Mr Davis stated in the letter there were a range of outstanding issues associated with bids from Exemplar led by Lend Lease and the Theiss-backed Intecare.

Mr Davis confirmed in the letter that the Exemplar bid was rated ahead of Intecare in most evaluation criteria.

Both Exemplar and Intecare have submitted revised bids for evaluation through the Best and Final Offer process.

In several interviews with the Bendigo Advertiser in the past year Mr Davis has maintained publicly the hospital project would be finished in 2016.

The new project timeline offered by Mr Davis reveals the state government will announce the winning hospital project tender on April 16.

The Bendigo Advertiser asked Mr Davis’ office yesterday to clarify the true position of the hospital project and explain the “issues” raised in his letter to then premier Ted Baillieu.

Mr Davis’ office declined to provide answers to any of the questions the Bendigo Advertiser was asked to submit by email and remained steadfast to the minister’s standard line.

“The Minister stands by his earlier statements that the project is on time and on budget,” a statement read.

“The BAFO process has closed and departmental processes are under way and announcements will be made in the near term.”

But Member for Bendigo East Jacinta Allan said the move to ban big builder Lend Lease from all work funded by the state government was still being challenged in court for breaching the Fair Work Act.

Ms Allan said although the trial finished last Wednesday, Justice Mordy Bromberg had already flagged he could need more than two weeks to make a decision which would further delay the Bendigo Hospital tender process.

“It’s a complete shambles,” Ms Allan said. “And the people this is affecting is central Victorian patients and the local community.”

Ms Allan said Mr Davis had continually told the Bendigo community that everything was OK with the project but his letter proved that was not the case.

“It shows things are completely different behind the scenes,” she said. “It’s a real betrayal.”