Mr Andrews was in Bendigo on Friday to announce long-awaited funding that would see the relocation of services contained within the two buildings, which date to 1958 and 1972.

Inpatient rehabilitation moved from the towers to the new hospital building, but some services, including administration, public dental services and a hydrotherapy pool, remained.

Under the plan, the old hospital building would be refitted to create a new day rehabilitation centre.

The new centre would include physiotherapy, occupational therapy, social work, speech therapy, prosthetics and orthotics, clinical psychology, and neuropsychology, services which are currently at different locations on the health campus.

The land where the towers sit would return to open green space.

“This is a really significant investment, it’s about finishing the job we started,” Mr Andrews said.

“That final step, making sure this entire precinct has the best facilities to go along with the very best staff, so we can provide the very best care.”

Bendigo Health had planned to establish a rehabilitation centre and demolish the old towers, but had to wait for government funding.

Related: Government to look for future funding for towers

A May 2017 parliamentary committee report described the plan as “sensational”, but challenging to fund in the economic climate.

The two towers fail to meet fire safety standards introduced in 2012, because their construction makes it impossible to comply.

In 2016, Bendigo Health said it had implemented a number of measures to ensure they were as safe as possible.

The project announced by Labor on Friday would begin in 2021 and be completed by 2023.

Mr Andrews said work would not be able to begin for a few years because of the time it would take to bring together the various services now located Bendigo Health sites.

“Bringing those together, and doing it in an orderly way – we don’t want to disrupt services while we obviously demolish these old towers here and refit the new space – this’ll be done in an orderly way,” he said.

The Labor government says the project would also create about 180 construction jobs.

EARLIER: TWO of Bendigo’s oldest remaining hospital buildings, two cream towers at the Anne Caudle Centre site, are set to be replaced with a new day rehabilitation centre.

Premier Daniel Andrews was in Bendigo on Friday for the announcement.

He said the state Labor government would commit $60 million for the project if re-elected in November.

He said if re-elected, work on the project will start in 2021 with an expected completion date by 2023.

Earlier this year, plans to move Bendigo Health dental, rehabilitation and some administration services from the old cream brick towers on Barnard Street to the former hospital site remained on hold, pending state government funding.

Bendigo Health planned to remove services from the towers to a new day rehabilitation centre at the old hospital site, and demolish the towers as part of the city’s new hospital project.

The east wing of the towers was built in 1958 with the north wing following in 1972. In 2012, the buildings were deemed non-compliant after failing to meet fire-safety standards.

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