Planning permission has been granted for the new children's hospital on the site of St. James's Hospital in Dublin.
The acting Health Minister Leo Varadkar has called it 'Great news for all the children of Ireland'.
"It will be the single biggest capital project in the history of Irish Healthcare. The outgoing Government approved funding for the project and included it in the Capital Plan 2016-21.
"Enabling works will begin this summer.
The Minister also thanked the St James's Hospital Board for their support and commitment for the project.
"Building a hospital of this size on the St James's campus will inevitably mean disruption but the St James's Board have embraced this project fully. Co-location of these two leading hospitals will result in a campus of clinical, educational and research excellence that can attract the best and brightest across all disciplines. In the future, the development of a new Coombe Hospital on the campus will bring further benefits, with children and young people, mothers and babies all benefiting from the tri-location of adult, maternity and paediatric services."
CEO of St James’s Hospital has also welcomed the announcement and said he looks forward to working with the Children’s Hospital Group and the NPHDB on the design and location of the hospital.
As well as this, CEO of the Children’s Hospital Group Eilish Hardiman said the news will positively transform how paediatric services are delivered for children and young people here in Ireland.
However opponents to the location say it would be better on a campus off the M50 motorway.
Campaigners from 'Connolly for Kids Hospital', want the new building moved to Blanchardstown, off the M50, to facilitate traffic.
Spokesman Fin Breathnach has asked the acting Health Minister to intervene: “The Government have abrogated responsibility in relation to the selection of the site to An Bord Pleanala.
“They really should not have been presented with this site, it was the only site they had to consider, there were no other options made available.
“We believe it is the wrong site, if you look at McKensie’s original report, back in 2006, the number one requirement was space.
“Because of the lack of space on the James’s site, literally everything is compromised."