The medium-security facility will be expanded by another 120 beds as part of a state government plan to modernise and upgrade the prison system in Victoria.

Corrections Minister Andrew McIntosh said the project would have many benefits for the region.

“The new beds at Loddon form part of the Coalition Government’s prison expansion program, which will see 395 additional beds added to the existing prison system over the next two years,” he said.

“For more than two decades, Loddon Prison has played an important role in the local Castlemaine area, and we look forward to working with Mount Alexander Shire and the local community to deliver a new chapter in the prison’s history.”

The expansion is expected to create up to 120 jobs during construction with 40 permanent jobs set to be created once the project is complete.

Loddon Prison houses prisoners serving short, medium and long-term sentences for a variety of offences.

Mr McIntosh said the prison expansion would help rehabilitate prisoners and support their re-integration into society once they served their sentence.

“This new facility at Loddon will assist prisoners with offence-specific treatment programs, education, vocational training, and post-release issues.”