A local Kempsey business has won the contract to build the world's first breeding facility for wild koalas.
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Lahey Constructions will be working with Koala Conservation Australia to build the facility at the Guulabaa Tourism Precinct that will based in the Cowarra State Forest.
Lahey Constructions manager Matt Fearnley said the company was honoured to win the multi million dollar contract.
"This is an important development for the preservation and survival of koalas and cements our reputation for delivering quality projects," he said.
Donations made to the Port Macquarie Koala Hospital during the 2019 and 2020 bushfires helped fund the facility which will eventually house up to 100 breeding koalas.
Planned displays of the care process and a suspended deck to view koalas in their natural setting aims to help visitors understand the importance and care of the species.
Koala Conservation Australia's chairperson Sue Ashton said that the organisation's goal is to breed healthy koalas for release in strategic sites in New South Wales.
"This facility is purpose built to accommodate a large number of koalas and will provide ideal conditions for them to breed," said Mrs Ashton.
"Rebuilding koala numbers and reversing local extinctions will be key to giving the species hope of survival in the future."