The scheme will taken place on the section between New Buildings and north of Strabane.
The Department for Infrastructure today, 28 November, announced its Decision to Proceed the project.
Sinn Féin MP Elisha MCCallion welcomed the decision.
She said: "The A5 and A6 roads are essential to the economic development of the North West and with work already underway on the Derry-Belfast route, today's announcement is another huge vote of confidence for the future of the North West economy.
"Other projects such as the new North-West Transport Hub will complement the work on both road projects and will be crucial in securing economic recovery for Derry by redressing the city's historical lack of infrastructure and connectivity."
The Department's Permanent Secretary Peter May said: "This decision concurs with the Planning Appeals Commission recommendation that the scheme should proceed in the wider public interest. Before giving approval for the scheme to proceed, careful consideration was given to the PAC Report and the Department’s assessment of the environmental impacts of the scheme. In proceeding with the scheme, the Department commits to carrying out the necessary actions to implement the PAC recommendations and mitigation measures as described in the Department's Statement and the Environmental Statement. Construction will start as soon as possible.
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"The scheme should lead to an increase in demand for local suppliers of construction materials, as well as a boost to commercial trade in the surrounding area. There will also be a considerable focus on social sustainability with the construction contract incorporating targeted recruitment and training opportunities for both young and long-term unemployed people. Phase 1a has an estimated cost of £150million to deliver. Under the Fresh Start Agreement the Irish Government has agreed to contribute £75million over three years."
The Department will now publish the formal Notice of Intention to Proceed, make available to the public the PAC Report and the Department's Statement, make the Direction Order for the length of the scheme between New Buildings and Ballygawley, and make the Vesting Order for Phase 1a between New Buildings and north of Strabane.
However, SDLP West Tyrone MLA Daniel McCrossan said there can be no more delays on the project and also confirmed he will be "scrutinising the process extremely closely".
He said: "People in the west have been waiting for far too long on the A5 development. Promise after promise has been broken and people here are now highly cynical of the entire scheme.
"But this remains one of the most critical infrastructure projects on the island. We know that investment is dependent on transport infrastructure, a highly skilled workforce and soft infrastructure development. The best way to attract new jobs west of the Bann, where they’re most needed, is to build roads to bring them here."
(CD/LM)
