There will be a range of services including two GP surgeries and dental treatment.

It is envisaged that more than 200 people will work at the hospital, being built with private finance at a cost of �10m.

Finance director of the West Cumbria Primary Care Trust, Charles Welbourn, claims problems with the controversial Private Finance Initiative(PFI) system have now been tackled.

The hospital will be built by Thomas Armstrong (Holdings) Ltd and CCPL Ltd consortium.

Thomas Armstrong (Construction) Ltd will also be responsible for maintaining the new hospital over the 25-year contract.

Staff base

The consortium was selected by West Cumbria Primary Care Trust (WCPCT).

It is hoped the hospital will be fully operational by the end of 2004.

The new hospital will be located on the former West Cumbria College site on Park Lane in Workington with services transferring from the current infirmary, Anne Burrow Thomas Health Centre, and Solway Health Services GP practice.

In addition, the hospital will provide a base for the staff providing the WCPCT's community services in the Workington area.

The Cumbria and Lancashire Strategic Health Authority oversees all the health trusts in Cumbria.

A spokesman said: "This is a much needed development for the people of Workington, providing accessible health care on one purpose-built, modern site."