The funding will be used to upgrades the main arena with additional grandstand seating and stronger lights to support evening events; construction of new equine facility amenities; exterior painting of two main buildings and removal of old lead paint and asbestos and the redevelopment of the storage building to meet safety and building standards.

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Showground Coordinator Lisa Powlesland said construction of the upgrades will begin after the 2021 Kempsey Show in April.

"We're extremely fortunate for the additional funding for upgrades to the Kempsey Showground," she said.

"Works are currently underway from our previous stimulus funding announcement. The open timber stable rebuild and the replacement of the covered arena has commenced, the refurbishment of the ladies public amenities is completed and the gents amenities refurbishment is 50 per cent complete."

"Work to replace our very tired old fence will commence next week depending on the weather."

Member for Oxley Melinda Pavey said the funding will improve facilities and infrastructure while supporting local work.

"Our local showgrounds are multi-use community hubs so it's terrific to see this further investment in infrastructure upgrades to keep them safe and functional for future generations," Mrs Pavey said.

"Showgrounds provide facilities for agricultural shows and community groups with many also serving as relief centres during bushfires and floods to provide shelter for residents and animals and a base for emergency services.

"This is the most amount of funding we have seen spent on showgrounds across the state."

Mrs Pavey said the COVID-19 showground stimulus program has now allocated a total of $55.77 million to 795 showground improvement projects across the state.

"These investments are providing a kickstart by improving the safety, use and condition of showground infrastructure while stimulating communities with work for carpenters, plumbers, electricians, painters and other trades as well as suppliers," she said.

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