The €20 million Ulster Canal project has reached a major milestone as work begins on a key section in Co Fermanagh.

Work has got underway to restore the section of the canal between Clones and Clonfad as part of Phase 2 of the project.

The Taoiseach was joined by Minister for Housing, Local Government and Heritage, Darragh O'Brien TD, Minister for Rural and Community Development, Heather Humphreys TD, Minister for Heritage, Malcolm Noonan TD and Northern Ireland Minister for Infrastructure John O'Dowd MLA for the ceremony at Ulster Canal Stores in Clones.

The project has been co-funded through the Shared Island Fund, the Rural Regeneration Development Fund and the Department of Housing, Local Government and Heritage. The works will see the construction of a 42-berth marina at Clones, with access bridges and amenity area, as well as new walking and cycling trails along the Canal between Clones and Clonfad.

Speaking at today's event, Taoiseach Michéal Martin TD said: "The Ulster Canal restoration is a cross-border project in its truest sense and will be transformative for this region. It is not just an infrastructure project, it is an investment in our communities and a tangible example of what can be achieved through partnership and all-island collaboration.

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"I am delighted that through support from the Shared Island Fund we have been able to prioritise the Ulster Canal restoration and bring it to this stage. Now that the momentum behind this long-standing project has been reignited, the Government intends to do more to progress the next phases of the canal restoration."

Minister for Housing, Local Government and Heritage Darragh O'Brien commented: "The whole of Government approach to delivering this project demonstrates what can be achieved through commitment, determination and focus. Working with our colleagues in Northern Ireland, with the shared vision of benefitting all our communities, has driven this project to the point we are at today. We are ambitious in our aim to complete this phase the end of 2023."

Minister for Rural and Community Development Heather Humphreys TD added: "Phase 2 of the redevelopment of the Ulster Canal is an exciting step forward. While hugely significant in itself it is also the next phase in unlocking our waterways to Clones. Once finished people can get in their boat in Limerick, come up the Shannon-Erne system, come through Lough Erne in Fermanagh and then onto the stretch at Castle Sanderson to Clones. This is a game-changer for Clones and our border region."

Northern Ireland Minister for Infrastructure John O'Dowd MLA said: "I am delighted to be here to mark the commencement of work on Phase 2 of the Ulster Canal restoration, which when completed, will provide an additional inland navigable waterway from Lough Erne to Clones. The project will bring many benefits to the area by creating a new destination for visitors as well as enhancing the facilities available for local communities. This will create opportunities both for existing businesses to expand and for new businesses to develop. In the current economic climate, it is heartening to see a project like this being progressed; a project that has the potential to bring economic benefits that could be transformational for the region."