REOPENING the Borallon prison will create more than 200 local jobs when it's up and running by mid-2016.
The State Government announced it would spend $57.3m refurbishing the mothballed prison.
Borallon, which has been decommissioned since January 2012, will house nearly 500 male prisoners, with the Southern Queensland Correctional Centre near Gatton set to become a women's prison.
A Queensland Corrective Services representative said the prison was expected to create more than 200 jobs.
"The Borallon Correctional Centre is scheduled to reopen in the 2015-16 financial year," the representative said.
"The precise number of employees at the centre is yet to be determined, but is expected to exceed 200."
The $57.3 million revamp of Borallon prison is $200m short of what the 2013 Costello report estimated a new prison would cost.
Queensland Attorney-General Jarrod Bleijie said reopening Borallon was the best way to increase the capacity of the state's prison network.
"The $250 million figure estimated in the review was based on the design, layout and facility standards of a new facility, the 2014-15 budget allocation is to recommission the facility to approved standards," he said.
Ipswich West MP Sean Choat said the project would create local jobs at a time when there had been significant cuts in local industries, as well as provide a boost to local business.
"We've all read some dreadful things about the cuts at Aurizon and Bradken, so I'm really excited about the jobs this will create," he said.
"I'm hopeful some local businesses win contracts.
"We've hosted this well for a long time, since it opened in the 90s, and it's local businesses that I hope will be able to supply the prison."
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