The total spend for the project is now £14,905,000
An additional £2.3 million has been granted to complete the development of a new 60-bed residential care home.
In 2020, Tynwald approved the build which was estimated to take two years to complete and will replace Reayrt ny Baie which is said to be 'dated and impractical'.
Health Minister Lawrie Hooper and Douglas Central MHK Chris Thomas praised the work of the Department of Infrastructure for 'controlling the costs'.