Work has started on building a new home for the elderly at St Joseph Home, Għajnsielem.
The first phase of the project involves demolishing part of the building that has no historic or architectural value followed by excavation works.
The old part of the building will be renovated.
The new building, which will have three floors and an underlying basement parking area, restaurant, chapel and ancillary facilities, will have 70 rooms with two beds each. Some rooms will be specially designed for people with dementia.
The one-million-euro project is expected to be completed in 18 months.
Last year the Gozo Ministry and the Gozo diocese reached an agreement whereby the diocese will rent the premises to the government at a favourable rate to be used as a home for the elderly. The ministry will handle its administration and the diocese will provide any religious services required at the home.
It may also accommodate foreign elderly residents, starting off a new niche market in Gozo.