Work is expected to begin on the new unit at Sligo University Hospital in the third quarter of this year.
It's understood that the contract for the new 42-bed unit will be awarded in the second quarter, with the work expected to last up to 30 months.
The new unit will also include en suite rooms and ancillary accommodation.
Fine Gael TD, Frank Feighan, says its crucial that there are no more delays to the project.