Guam - The Navy broke ground this morning on its replacement hospital in Agana Heights. The new nearly 300,000 square foot Naval Hospital will be constructed in two phases so that operations are not interrupted. Watts-Webcor-Obayashi Joint Venture manager Denny Watts says once the first phase is completed and operations are transferred to the new facility, the second phase will allow workers to demolish the existing hospital that was built in 1954 to construct required parking.

"I am very happy that our team can in our own way support the mission and add value to the men and women in our armed forces," said Watts. "For me personally, I find it one of highest honors to know that we can make a difference that allows to the servicemen and women that serve our country."

The project costs over $158 million and is expected to be completed by 2014.