It looks like a long-awaited expansion at Cambridge Memorial Hospital (CMH) will move forward with support from the provincial government.

Ontario Health and Long-Term Care Minister Deb Matthews was in Cambridge Thursday to announce the Liberal government's support for the plan.

"What I can tell you is I'm very, very pleased to announce that Cambridge Memorial has the green light to proceed to redevelopment."

The project is expected to include improved facilities for inpatients and greater capacity in a number of units, including the emergency department, which should shorten wait times.

The hospital's mental health unit will also be redeveloped to improve facilities and accommodate up to 25 beds.

In total 44 new beds are expected to be added, with construction to start within three years.

The Ministry of Health and Long-Term Care said in a release that construction is also set to begin in September to renew the hospital's mechanical and electrical infrastructure so it can handle the added capacity.

While many in the community are delighted at the news, support for the plan is contingent on the provincial Liberals being re-elected this fall.

It could also face challenges as the province struggles to balance its books, which are projected to carry a deficit until 2018.

And while the government says it will kick in for 90 per cent of the capital cost of the project, the local government will also have to make a substantial commitment to fund the remaining 10 per cent plus the equipment needed.

In terms of how much it will cost, Matthews says "It has to go to tender, so we actually won't know the final amount until we get those bids back down the road. This is obviously a very major project…so it's a substantial local investment."

Cambridge Mayor Doug Craig was at the announcement. He says "I want to dispel a bit of a rumour that's been going around for 10 years, and that's that when this announcement was made, I was going to shave my beard off. That's not going to happen."

He is hoping the expansion will happen though, because this isn't the first time the commitment has been made.

An announcement was also made in 2005, just days before Christmas. That expansion was never built, with the hospital and province eventually locking horns over funding and leadership.

With all the positive talk from the provincial government there is hope that this time will be different.

Matthews says "You know, you have come a long way at CMH. Your budget is balanced, you're showing great leadership, you're improving services for people."

And the announcement has left residents hoping services will be improved even further.