As the first phase in a longer term programme, the £1.8 million will be spent in the Market Square and Castle Hill areas of the town.
Minister Ritchie said: "I am pleased to make this announcement for Dungannon today. This investment will benefit the town centre greatly. The scheme will not only see a much needed improvement to the appearance of the centre of the town, but will also help it to function more efficiently, and will allow a better use of the Market Square for a wide range of activities."
The scheme will involve changes to the traffic circulation system, better use of the space for civic events, new street furniture and hard and soft landscaping.
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It is designed to compliment and enhance Dungannon and South Tyrone Borough Council's £2.2million development of Castle Hill as an environmental heritage site. It is hoped that construction will commence early in 2009.
The Mayor of Dungannon and South Tyrone Borough Council Cllr Barry Monteith said: "I strongly welcome this much needed funding and would like to pay tribute to the council which lobbied hard at DSD to secure it. It is very important now that traders and residents become involved in the process of delivering this project for the benefit of all."
Cllr Walter Cuddy, Chairman of Dungannon Regeneration Partnership (DRP) welcomed the announcement: "It is brilliant news for Dungannon town centre in that with the Castle Hill major development project also moving forward, we now have an opportunity to really make a difference to the infrastructure and overall image of Dungannon town. This I believe is another significant hurdle navigated in the strategic plan we set out within the Dungannon Regeneration Partnership, supported by Dungannon and South Tyrone Borough Council to make Dungannon a vibrant, competitive town with a distinctive identity and character focused on Castle Hill."
(VB/JM)
