Hundreds of jobs are to be created with the construction of a new mental health facility.
The building of the private 200-bed care unit in Whitehall, north Dublin, will create 300 jobs immediately. It will take 18 months to complete and will then employ a further 150 people when finished.
Health Minister Mary Harney said the scheme will help meet the future needs of older people and those with mental health problems.
"When this project is complete the quality of the services provided will have a real impact on the lives of residents," Ms Harney said.
"I am familiar with many of the facilities in the Highfield Hospital Group and am confident that the strong commitment to the provision of quality person centred services which the Eustace family promote will be continued in this new unit in Whitehall."
The 37 million euro facility will be located next to the site of the existing hospital on the Swords Road and Highfield Hospital and Alzheimer Centre will continue to operate during the construction phase.
The two-floor new building will have a mix of 100 mental health beds and 90 nursing home beds.
There will also be a 10 bed unit built to provide acute psychiatric care for both the adult and older population.
Stephen Eustace, Highfield Hospital Group chief executive, said the facility will be world class.