The aeromedical helicopter service in Albion Park will keep a promised $150,000 from the NSW government even if it gains money from the Illawarra Infrastructure Fund.
A new facility for the rescue helicopter at Albion Park is one of 20 projects that made the shortlist for the infrastructure fund.
This is despite the service last month receiving $150,000 to rehouse helicopter crew closer to the chopper.
At present, medical crews are located about 250 metres away from the helicopter hangar.
The money is part of the government's $39.1 million in funding over three years for aeromedical services in NSW.
That announcement was made on July 17, five days after the close of project submissions to the Illawarra Infrastructure Fund.
Shellharbour City Council put forward a request for full funding for a new facility for the aeromedical helicopter service, which is estimated at $6.5 million.
A spokeswoman for Health Minister Jillian Skinner said the original $150,000 was guaranteed for the Albion Park chopper.
"That funding will remain in Wollongong for the provision of aeromedical services even if the Shellharbour City Council application is successful," the spokeswoman said.
Kiama MP Gareth Ward said there was a significant difference between the project planned with the health department funding and the infrastructure fund bid.
"The scale of the project was far, far more significant than what was mooted by Health, who simply wanted to bring the staff that get the helicopter off the ground closer to the helicopter," Mr Ward said. "It was a basic upgrade to provide the facilities for the helicopter's ground crew. What Shellharbour council is proposing is a far more significant upgrade with many more facilities."
The $6.5 million shortlisted project would see an entirely new facility built for the rescue helicopter and all support staff at another location at Albion Park airport.
Infrastructure NSW is responsible for overseeing the Illawarra Infrastructure Fund process, and a spokesman said the $150,000 in funding would not rule out the $6.5 million helicopter facility getting funding.
"Partial funding from another source does not count against project applications when they are reviewed by Infrastructure NSW and the Restart Illawarra Assessment Panel," the spokesman said.
"In fact, co-funding can help make a project more viable."