Community and Rural Affairs Minister Eamon Ó' Cuív yesterday announced the funding for the project is coming from the €75m allocated to canals infrastructure under the National Development Plan 2007-2013.
Other projects being planned over the next five years include the completion of the re-opening of the Royal Canal to boating traffic in 2009; construction of a Regional Office at Carrick-on-Shannon; the construction of offices, depot, workshops and stores at Thomastown on the Royal Canal; and the construction of new stores in Portumna and Tullamore.
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Mr Ó' Cuív said initiatives to restore canals can boost the local economies and tourism potential of rural communities.
He said: "As these waterways run through some of the less developed areas of the country, their potential for acting as regeneration catalysts in this manner is considerable.
"Preliminary investigations will also commence on a number of other waterways to allow consideration to be given to their reconstruction at a future date."
He added: "By the end of the NDP, Waterways Ireland expects to have in place a further 3,750m of moorings, 70km of new or improved waterway and a range of facilities such as service blocks, pump-outs, car parks, etc.
"This will ensure a waterway system with improved access for all, which will provide an enjoyable amenity for boat users, walkers, anglers, etc, and where people can enjoy a quiet peaceful time in relaxing circumstances."
Advertisements are to placed next month to seek consultants to begin work on the Ulster Canal project.
(VB/JM)
