Works are expected to start on the project in December 2018 with completion by spring 2021.
Interserve will also deliver the provision of a new staff changing area within the courtyard; construction of new plant rooms; refurbishment of first-floor main switch rooms; a new car park and external infrastructure works.
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Ruth Treharne, Director of Planning and Performance at Cwm Taf University Health Board, said: "We are delighted that Welsh Government has supported the next phase of refurbishment of the ground and first floor of Prince Charles Hospital in Merthyr Tydfil.
"Amongst the benefits, the funding will provide for a new main kitchen, dining area and a new pharmacy, which as well as helping to meet our statutory compliance requirements, will also provide an enhanced environment for our staff and patients."
Carl Read, divisional director at Interserve Construction, said: "The award of the Prince Charles Hospital redevelopment contract underscores the close partnership we have established with the Cwm Taf University Health Board and our track record for delivering award-winning and life changing healthcare facilities across the UK."
