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Southern District Health Board communications adviser Sean Flaherty said the contract for the $6.5million project had been awarded to Leighs Construction, which is also working on Christchurch Hospital's outpatients building, and an extension to Middlemore Hospital.
Site preparation began at Frankton at the end of September and construction work was expected to begin ''early next week'', Mr Flaherty said.
Last October, the Otago Daily Times reported the upgrade, which includes the construction of two extensions, one of which would house the CT scanner, and a refurbishment of the existing hospital, would take about 18 months.
However, Mr Flaherty said the project completion date was September, a 10-month build.
The CT scanner was expected to be operational before that.
On Tuesday, the ODT reported the Central Lakes Trust would provide $1,173,299 to the Lakes District Hospital Foundation for the 128-slice scanner for the Wakatipu.
The funding covered about 80% of the total cost and the balance would be funded by the DHB.