The tender has been awarded for Junee Correctional Centre’s $220 million expansion.
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CPB Contractors will take charge of the works, which have been scheduled for completion late next year.
The jail currently employs employs more than 284 staff, including 127 locals.
The expansion will create between 250 and 300 jobs during construction and 130 construction, administration and correctional officer jobs following completion.
Cootamundra MP Katrina Hodgkinson said expansion the would “make a significant contribution to the local area”.
““The centre is dedicated to keeping the community safe and reducing reoffending through education and vocational training, and GEO group who manages the facility will continue to keep this as their priority as it expands,” Ms Hodgkinson said.
The expansion will see the addition of 480 maximum security beds in new wings neighbouring the existing centre, increasing the prison’s population from 875 to 1355.
The work will include refurbishments and extensions to existing buildings including the gatehouse, health centre, reception, administration, stores, kitchens, laundry and industries building.
The Shine for Kids facility will also undergo an expansion.