This follows months of legal wrangling after the previous builders McNamara & Co went into administration.
Following enquiries from us, the HSE issued a statement on the affair.
It said: “The HSE expects that it will shortly be in a position to commence completion of the Medical Block at Letterkenny General Hospital subject to finalisation of matters with the bondsman of Michael McNamara & Co, Allianz plc.
“The bondsman has now nominated John Sisk & Son as completion contractor under the Michael McNamara & Co bond.
“This proposal will involve John Sisk & Son taking over responsibility for completion of the McNamara contract works along with certain of the McNamara sub-contractors.
“A limited amount of building work remains to be completed with a significant element of work involving completion and commissioning of complex mechanical and electrical works which will be done by existing sub-contractors.
“The existing contract remains in force subject to the termination of the McNamara obligation to complete and the HSE is implementing contract provisions to secure completion.”
A source inside the hospital told us today: “At last there is some light at the end of the tunnel.”
A completion date for early next year could now be agreed, said the source.
More than 50 workers were turned away from the Letterkenny Hospital site last November when McNamara went into liquidation with debts of more than €1.5 billion.
The contractors are owed sums for work done of between €4,000 and €220,000.
Security guards were placed at the gates of the site but some workers did manage to get in to access and retrieve their tools.
The majority work on the 6,600 sq metre extension, which consists of a three floor medical unit and a new Accident and Emergency Unit, is already complete.
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