The new national children’s hospital at St James’s Hospital in Dublin is expected to cost more than €484m and open as late as spring 2018.
The 6.3 hectare development on the south city was agreed by Government as an alternative for the rejected Mater hospital location in the north of the capital.
Health Minister Dr James Reilly said construction is expected to be completed over the next five years, by the end of 2017 or into the early part of 2018.
Some €200m from national lottery funds will be used in the children’s hospital construction budget.
Another €39m has already been spent on rejected plans for the Mater site with €26m not able to be recovered.
But Dr Reilly suggested that there are concerns that development of the St James’s site will be above the previous estimate of €484m.
Meanwhile, Sinn Féin's spokesperson on social protection Aengus Ó Snodaigh TD welcomed the news.
He said: “Today’s news is a good news day for one of the most disadvantaged communities in Europe and I hope the minister will ensure that there will be a social dividend to the local host community over and above the jobs the hospital will bring to the area.”
“I would hope that the minister ensures that there is a social dividend, in the form of a local labour clause and that the construction team and the hospital management will work with the nearby local regeneration projects to ensure they also benefit.
“The adjacent Fatima and partially derelict James’ Street should be borne in mind while building work is occurring on site, with many empty apartments and retail units available for ancillary services and for homes for nursing and other hospital staff."