The Irish arm of Dutch construction group BAM has won an order to build a €1bn children’s hospital in Dublin, according to the Irish Times newspaper.

A spokesman at BAM’s Dutch headquarters confirmed the company was involved in the project, but would not go into details, the Financieele Dagblad said on Tuesday

The hospital has been a sticking point in the Irish capital for years, with many objecting to its location and soaring costs. The social affairs minister said the main reason for the higher cost is construction inflation and every year the project is delayed the more expensive it becomes.

‘The figure that we were working off was €650 million, not including equipment,’ he told the Irish Times. A final decision on the project is expected in the coming weeks.