The Department of Transport has awarded US$640,000 to progress the scheme, which is in County Clare.

There are frequent traffic jams on the very narrow 18th century structure that takes all the route's current traffic over the River Shannon.

“The existing road infrastructure around the area is quite poor and it is estimated that this project could deliver a massive boost of over €60 million [US$76.7 million] to the local economy between construction and the savings on journey times,” said Kelly.  The project could cost a total of US$52 million, with US$20 million for the upgrade of the local road, US$15 million for the bridge and the balance on the bypass and proposals.

“Whilst the project may still need to be approached on a phased basis in the future, this project has the added benefit of the capacity to be built in stages so I am confident I can secure extra future funding,” said Kelly.

Senator Tony Mulcahy welcomed this week's announcement.  “This is a very important piece of infrastructure for the people of South East Clare, North Tipperary and Limerick,” he said. “Anyone trying to cross from one side of the Shannon to the other at Killaloe knows that it is a nightmare at peak times. The quicker the new bridge is built and the roads are improved the better.

The Killaloe - Ballina area is a big tourist draw and a new bridge will help bring more visitors into the whole Lough Derg catchment area. In this climate of austerity it has to be welcomed that important capital programmes are getting the resources to proceed.”