The Northern Ireland Minister for Finance has approved £2.7 million (€3.15 million) in funding for a new cross-Border bridge at Narrow Water on Carlingford Lough.
Sammy Wilson told the Assembly yesterday he would sign off on the bridge which will link south Down with the Cooley peninsula in Co Louth.
The plan is supported by €17.5 million in EU grant aid. The Irish Government is contributing €912,000.
The Special EU Programmes Body said it had received official notice from Mr Wilson that the scheme was to receive Stormont's share of the cost, and would forward a letter of notice to the East Border Region, a group of councils in the area and the lead partner in the project.
The approval marks the successful end of a local campaign lasting more than 30 years.
Construction is expected to take two years.
The offer of EU funding was due to be withdrawn had Mr Wilson not given notice of his department’s approval.
He told the Assembly yesterday he had not been under political pressure.