The money will permit the construction of a pedestrian and cycle bridge at Melvin.
Cllr Kelly said: "The completion of 2.4km of pedestrian and cycle access will be a major boon to people in residential districts of Strabane and increase not only the physical amount of access to the town centre, but also the types of transport which can be engaged in.
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"Not only will those crossing the River Mourne now be safer, there will also be a healthier option and we should be planning to promote the pedestrian and cycle routes that this will open up.
"Despite all the potential pitfalls along the way, my council colleagues and I were prepared to fight all the way for this bridge, and, speaking for the SDLP in the town, I am absolutely thrilled that DRD has accepted our bid and I look forward to the many added benefits the bridge will bring in terms of access, health and bringing communities together."
(CD/GK)
