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Plans include a new multi storey car park and helipad at Morriston
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Hospital mangers say they are delighted to be awarded the largest chunk of a £350m assembly government fund.
Parts of Morriston Hospital in Swansea will be rebuilt and services modernised at Singleton with the £70m grant.
Acting chief executive Calum Campbell said it would speed up their plans to improve patient care and act as a major boost to the construction industry.
The Strategic Capital Investment Fund (SCIF) has fast tracked government spending due to the economic downturn.
Finance Minister Andrew Davies has announced 19 capital projects in the fund's first round.
Mr Campbell said: "The trust's HealthVision Swansea scheme is designed to modernise the delivery of patient care at Morriston and Singleton hospitals, and this money will help turn that vision into reality more quickly.
"HealthVision Swansea includes major plans for rebuilding large sections of Morriston Hospital and is one of the largest regional NHS capital projects in a generation.
"It will pump millions of pounds into the local economy, providing a major boost for the construction."
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