A NEW 100-bed hospital costing nearly £30 million is to be built in Ebbw Vale. Money for the new community hospital - which will cost an estimated £27.8 million - was announced by Assembly finance minister Edwina Hart in her draft budget speech yesterday.

It will serve the whole of Blaenau Gwent and will include inpatient and outpatient facilities, a minor injuries unit, therapy and diagnostic facilities and an adult mental health unit.

The Assembly cash means it will not need to be built through a private finance initiative. The new hospital will help thousands of Blaenau Gwent patients who currently attend clinics at Nevill Hall, Abergavenny.

The new hospital will mean: The transfer of up to 8,000 outpatient clinics a year, currently held in Nevill Hall Hospital, Abergavenny; Development of local radiology and other diagnostic services; Development of local cardiology, pulmonary rehabilitation, and other therapy services.

Blaenau Gwent AM Peter Law said: "Having fought for this development since I was elected I am obviously delighted.

"I sincerely hope that we shall now see the building of this much-needed hospital as soon as possible."

More details on the hospital's facilities were due to be announced later today by health minister Jane Hutt.

Health overall was the big winner in Mrs Hart's draft budget - getting an extra £110 million for health and social services on top of a baseline increase of £300m already committed.

But the Assembly is also set to bring in an independent adviser. The author of the Chancellor's report on the future of the NHS, Derek Wanless, will act as an adviser to a review of health and social care in Wales, Mrs Hart said.

She added: "His report will be of critical importance in setting the agenda for NHS reform in Wales.

"Allocation of resources beyond the end of the next financial year will be determined by the direction that the review can lead us in ensuring that investment is matched by reform and delivery."

The draft budget also means big spending increases for local government, environment, planning and transport, economic development, education, culture, sport and the Welsh language.

The decision on the draft budget will be made on October 29.