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Rochester prison is to undergo major expansion so it can accommodate more inmates, it will be announced today.
Justice Secretary Liz Truss will reveal the prison will temporarily close, with inmates transferred to other sites, whilst redevelopment work takes place.
It is part of the Government's plans to reform the crisis-hit jail system.
Sites in Full Sutton in Yorkshire, Hindley in Wigan, and PortTalbot in South Wales have also been earmarked for development as part of a pledge to create up to 10,000 modern prison places by 2020.
As well as creating modern establishments, officials say the proposed programme will boost regional economies by creating up to 2,000 jobs in construction and manufacturing industries and new opportunities for local business.
Ms Truss said: "We cannot hope to reduce re-offending until we build prisons that are places of reform where hard work and self-improvement flourish.
"Outdated prisons, with dark corridors and cramped conditions, will not help offenders turn their back on crime - nor do they provide our professional and dedicated prison officers with the right tools or environment to do their job effectively.
"This significant building programme will not only help create a modern prison estate where wholescale reform can truly take root but will also provide a thriving, economic lifeline for the local community - creating hundreds of jobs for local people and maximising opportunities for businesses."
Peter Dawson, director of the Prison Reform Trust, said:"This massive investment in new prisons is not matched by a credible plan to reduce our reckless overuse of prison in the first place.
"The prison estate certainly needs an overhaul, but reducing demand would mean closing prisons, not opening them."