The Taoiseach, Bertie Ahern, has told the Dáil that the preferred bidder to build the new prison at Thornton Hall will be announced by Easter.
Thorton Hall is due to replace Mountjoy Prison.
Mr Ahern said the valuation had been completed and what the Government had required was a modern, stand-alone prison on a secure site.
Labour Party leader Pat Rabbitte earlier asked the Taoiseach who the preferred bidder was and how did the Government propose to protect taxpayers' money in the contract given its record on this particular site at Thornton Hall.
Mr Rabbitte said the Comptroller and Auditor General deplored the manner of the purchase of the lands at Thornton Hall saying they were at least twice the market value.
He added that weekend reports said a site adjacent to the Thornton Hall site had sold for €100,000 an acre, while Minister for Justice Michael McDowell had paid €200,000 an acre for the new prison site.
He described it as the most profligate waste of taxpayers' money by any minister.
