GENERAL manager of the Proserpine Nursing Home Peter Hill was "jubilant" to sign off on a new $2.2 million upgrade of the facility on Monday.

Construction of the new wing has already begun and on Monday formal contracts were signed by members of the nursing home board and the winner of the tender.

Local builder Brad Penhallurick of Penhallurick Constructions will undertake the work, which will provide an extra 16 aged care beds for the people of the Whitsunday community.

Mr Hill said money for the construction of the new wing was sourced internally through fees charged to residents.

Plans for the new beds have been on the drawing board for the last 18 months and government approval was required before the project went ahead.

A wing that has been disused since the opening of the Crystal Brook wing in 2013 will be dismantled and rebuilt to accommodate a new total of 103 residents.

The start of construction was due to begin in April but the touch-down of Cyclone Debbie caused inevitable delays.

"(But Mr Penhallurick) is now making good headway and we hope to be concluded before Christmas," Mr Hill said this week.

Mr Hill said the beds of new wing would not immediately be filled and as new residents filled the wing extra staff would be employed.

"To bring in 16 new residents is a pretty big call. They are not just waiting at your front door to walk in. Some will be, but things are complicated by damage the facility sustained from the cyclone," Mr Hill said.

It is "guestimated" that repairs to the damaged wings in the wake of Cyclone Debbie will total $300,000.

"We have been finding out from the insurance company assessors to give us a scope of works that we can get a quotation for," Mr Hill said.

"Some of the rooms may look fine but the plaster board has been affected by water. Sadly out of the Whitsunday Wing, the guts (of the building) will have to be ripped out."

Mr Hill said there was a great need for aged care beds in the Whitsunday region and 16 new beds would go a long way to filling that need.

"We are jubilant (to be able to provide new beds), there is such a demand and we have people who need to come in. It's dreadful when you can't say 'Well come in straight away'," Mr Hill said.