On Friday - just in time for Christmas - the Old Bega Hospital Reserve Land Manager board received the news the NSW government had finally confirmed $3million would be provided to restore the building.

Along with almost $500,000 confirmed by Crown Lands for the project in October, the money from the Regional Communities Development Fund means the project can move ahead and construction is expected to start next year.

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Speaking to Australian Community Media on Monday, land manager board member Richard Bomford said it had been a "choppy and rough road", but he was now extremely chuffed.

"You don't get given $3million every day of the week, you have to work for it," he said.

"But finally, finally, here it is.

"I no longer have any doubt the $3million is coming."

In February this year, Member for Bega Andrew Constance promised the money for the project, which would come from the Regional Communities Development Fund.

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However, Mr Bomford said the promise was subject to conditions that included the land manager board apply for the funding, despite the fund's application process not opening until August - about six months after Mr Constance's announcement.

Although, as Mr Bomford said, "it all worked out in the end".

He said the restoration's plans are currently back with their architect and he hoped they would be returned before Christmas to submit as part of an amended development application for council's approval.

Eventually, the call-out will be made to builders with the aim of work beginning next year and finishing in 2021.

The $3.5million will only cover what is termed the "bare bones restoration", but Mr Bomford said as the works involved include providing water, power, disability access and more, it will mean the building will be usable for the community.

He thanked all the people and organisations who had contributed to the project.