Construction starts on Gunnedah Koala Sanctuary following funding from state government and Whitehaven Coal

Following a number of setbacks, Gunnedah's koala sanctuary is set to start welcoming visitors in 2024, after the development was approved back in 2021.

The bushland site, located on the Oxley Highway, will include both a koala sanctuary and hospital.

The park is also slated to host animal enclosures, picnic areas, playgrounds, cultural heritage displays and demonstrations, a caretaker's residence, bush-themed mini-golf, caravan sites, safari tent accommodation and a zipline.

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Gunnedah Shire Council mayor Jamie Chaffey said the ground-breaking announcement, that construction had started, was a "tremendous" step in what has been dubbed an "important project" for the town.

"It is an important step towards the conservation of koalas in the region," he said.

"And the sanctuary will also be an education facility, with the added benefit of being a great tourism attraction."

But getting to construction hasn't been a walk in the park for council.

It comes after Northern Queensland tourism operator CaPTA pulled out of the project in September last year and the revelation the budget for the project had blown out by more than $6 million.

A new operator for the sanctuary is yet to be announced.

To complete stage two and three of the sanctuary, $20.1 million from the state government, $2 million from Whitehaven Coal and $1.5 million from council has been secured to cover the bill.

Tamworth MP Kevin Anderson said the sanctuary would be a "significant development" for the future of Gunnedah and would solidify the town as the "koala capital of the world".

"Once open, I know tourists from across our state will be booking their tickets to Gunnedah," he said.

"And local businesses will be reaping the rewards of more visitors to the region."

The sanctuary is expected to start welcoming visitors in 2024.

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