The new super-surgery will houses two existing GP practices, as well as dentists, social care and other community services.
Wates will also provide a mobile health centre for use while the old health centre is knocked down and the new one is being built.
Contract award followed the devolved Welsh government approving the spend.
Work has started on site and is expected to complete in January 2025.
Jason Taylor, regional director at Kier Construction Western & Wales, said: 鈥淭his is a significant project for the community in Newport and our Wales business, and we are pleased to be getting started on site.
鈥淭his new health and wellbeing centre will link directly to the community hub and will allow for an effective integration with wider community services and create a focus for health and wellbeing within the community.鈥�
The project was procured through the Building for Wales Framework.
Newport is not Kier鈥檚 only health sector project in Wales. It is also building a similar health centre in Tredegar and is on site at Singleton Hospital in Swansea with recladding works. Last year it handed over the 拢25m HMT Sancta Maria hospital, also in Swansea.
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