The Taoiseach said at the opening of the second phase of the project that the restoration of the Ulster Canal would transform the border area it flows through.
Micheal Martin lay the foundation stone of the disused waterlink, the restoration of which is a flagship north-south infrastructure project.
The Ulster Canal, which runs through counties Armagh, Fermanagh and Tyrone in the North and Cavan and Monaghan, was built in the 19th century but was abandoned in the early 1930s.
The phase will restore a 2.5km stretch of canal from Upper Lough Erne in Co Fermanagh to the International Scout Center at Castle Saunderson, near Belturbet, Co Cavan.
The canal between Clones and Clonfad in County Monaghan is the focus of phase two.
The Shared Island Fund, the Rural Regeneration Development Fund, and the Department of Housing, Local Government, and Heritage are all contributing to the government's funding of the $20 million project.
At the event today, the Taoiseach was joined by the ministers for housing, rural and community development, and heritage, Heather Humphreys, Darragh O'Brien, and Malcolm Noonan.
John O'Dowd, the minister of infrastructure for Stormont, was present at the ceremony as well.
New walking and cycling trails will be built along the canal between Clones and Clonfad, as well as a 42-berth marina at Clones with access bridges and a recreation area.
By the end of 2023, the phase is expected to be finished.
The repair of the Ulster Canal, according to Martin, "will revolutionise this region and is a true cross-border endeavour."
It is more than just an infrastructure project; it is an investment in our communities and a concrete illustration of what can be accomplished with collaboration throughout the entire island.
"I am pleased that we have prioritised the Ulster Canal restoration and brought it to this point thanks to financing from the Shared Island Fund.
"The Government aims to do more to forward the next phases of the canal restoration now that the impetus behind this stalled project has been revived."
O'Dowd emphasised the potential economic benefits of the initiative.
I'm excited to be here to celebrate the start of Phase 2 of the Ulster Canal restoration, which when finished will bring another inland navigable waterway from Lough Erne to Clones, he said.
The project will benefit the community in various ways by establishing a new tourist attraction and improving the facilities accessible to nearby villages.
"This will present chances for both the growth of new firms and the expansion of currently operating ones.
"In the current economic context, it is encouraging to see a project like this moving forward, a project that has the potential to deliver economic advantages that might be transformational for the region," says the author.
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