Construction has commenced on a €11 million road project in Dundalk.

The Mount Avenue Link Road Scheme will take place from Lis na Dara, on the Carrick Road, to the Mount Avenue Road, and forms part of plans to upgrade the western road network in the town.

The new road will join the existing Mount Avenue Road north-west of the ESB Substation. From that point, the Mount Avenue Road will be widened and upgraded to Castletown Cross on the Castleblayney Road.

The project is set to open up the wider Mount Avenue residential zoned lands for new housing, and initially will facilitate the development of 194 private units by Urban Life and 93 social housing units to be provided by Louth County Council in conjunction with the Department of Housing.

The completion of the scheme will see a total of 234 units delivered by 2025, 51 of which are cost reduced by agreement, with 93 social houses projected for 2024.

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Housing Minister Darragh O'Brien visited the site to officially turn the sod on the project.

Speaking at the event, Minister O'Brien said: "I'm delighted to turn the sod on this important piece of infrastructure for Dundalk, and I'm proud that the Government’s Local Infrastructure Housing Activation Fund (LIHAF) has helped the project to happen. LIHAF is about relieving infrastructure blockages and unlocking the potential for large scale housing projects – supporting Housing for All as it ramps up the supply of new homes across the country.

"Mount Avenue Road is a perfect example of this fund in action. The money we are investing here through LIHAF will support the initial development of over 200 homes – social, affordable and private – with the potential for more than 1,000 more on the wider lands."

Cathaoirleach of Louth County Council, Councillor Conor Keelan commented: "On behalf of Louth County Council, we are delighted to welcome Minister O'Brien here today to turn the sod on what has been a strategic objective of Louth County Council for many years. This significant investment will breathe new life into a part of Dundalk that will in the coming years become home to many new families."

The work is being carried out on behalf of Louth County Council by Contractors Gibson Ireland JV.

John Gibson, Gibsons Brothers Ireland JV, added: "We are delighted to be working in conjunction with Louth County Council to deliver this new and upgraded link road at Mount Avenue, Dundalk. We are looking forward to being part of the team for this prestigious and important project and wish thank the local residents in advance for their cooperation and understanding during the construction period."