Rebuilding of the fire damaged Nauru hospital is now underway with a ground breaking ceremony at the site.
The development will include new emergency and outpatient rooms, an acute ward, a pediatric ward and an operating theatre and some will be ready for use by early next year.
The Nauru Health Minister Valdon Dowiyogo says the new hospital facilities will significantly cut the costs incurred by the government on overseas medical referrals.
He says the most notable facility will be the improved diagnostic imaging and pathology capability
including the installation of a CAT scanner.
The Australian Government is providing just over $US8 million dollars towards the development.