Additional land has also been purchased, including 2800sq m from Hastings District Council that has been used by Recreational Services Limited.
The entire site is 15,700sq m and the completed theatre facilities will have the capacity for 5000 operations a year.
It will employ up to 100 staff and a global recruitment "is well under way", Hutchinson said.
"New Zealand has become a very attractive country for highly qualified specialists to relocate to and a new world-class elective surgery facility will ensure Hawke's Bay is able to attract and retain more specialist doctors, who can work across both the private and public sector."
The first stage of the project, which is currently under way, includes four operating theatres, full pre-op and recovery areas including overnight beds, sterilising services, and 150 car parks.
Project manager Nick Ward said Gemco Construction has completed all demolition works, earthworks and in-ground services, with foundations and super-structure progressing well.
Currently, work is being done on masonry blockwork, precast concrete and structural steel. Preparation for floor slabs and roof building will commence soon. It includes 2200 tonnes of concrete, 120 tonnes of structural steel and 9500 concrete blocks, Ward said.
These works are planned to be completed by March 2021, with architectural works, intensive building services and external site works to follow.
Local businesses Gemco Construction, Patton Engineering, Lattey Precast and RSM Reinforcing are working on-site at present.
Details of the second stage, which is still under concept development, will be announced in early 2021, Hutchinson said.
"This is one of the most exciting health and infrastructure developments which will help get our region moving again, in this challenging new economic environment.
"Healthcare in Hawke's Bay is facing unprecedented challenges, post-Covid-19, with even more pressure on the growing waiting lists for elective surgery," he said.
