WORK has begun on a £3.45million site which will eventually feature a private surgical hospital, care home and space for shops and businesses.

Ipswich-based firm Breheny have been awarded the contact to start work on the Colchester Northern Gateway-South project by Colchester Amphora Trading - Colchester Council’s commercial arm.

The masterplan for the 24-hectare site, which is south of junction 28 of the A12, will see the construction of up to 350 new homes with 30 per cent set to be affordable, a healthcare campus with 300 units and a private acute surgical hospital.

There will also be a75-bed care home, and space for shops and restaurants.

The site will feature access to ultra-fast broadband and a renewable heat network to supply heating and hot water to homes and businesses.

Breheny have been chosen to deliver the first part of the building work which is likely to be finished by September.

The council’s commercial boss Theresa Higgins (Lib Dem) said: “We are delighted to welcome Breheny on board to begin the first phase of works on this ambitious project.

“Our thanks go to all those residents and businesses who contributed to the shaping of the area through our public consultations.

“Together we have forged an exceptional development which puts the well-being of residents, the prosperity of our local economy and the protection of the environment at its heart.”

Work has already begun on the northern side of Northern Gateway which will include top class sporting facilities.

Paul Smith, group commercial director, of Colchester Commercial Holdings Ltd, added: “We welcome the start of this first major phase of construction work and look forward to working with Breheny who have an outstanding track record in civil engineering projects of this scale.

“This development will put Colchester firmly on the region’s map as an outstanding location to live and do business and we are working closely with our partners from the private and public sectors to bring it to fruition.”

John Breheny, chairman of Breheny said: “We are looking forward to working collaboratively with the team on the project to help benefit the local community.”