The British and Irish governments are to share the €4 million cost of re-opening the last two Border roads that were closed during the Troubles.
The decision was confirmed yesterday in Dundalk by Minister for Foreign Affairs Dermot Ahern and Northern Ireland Secretary Peter Hain at a meeting of the British-Irish Intergovernmental Conference (BIIGC).
The roads and bridges at Annaghroe and Knockaginney linked counties Monaghan and Tyrone.
Many Border roads and bridges were sealed off or blown up by the British army, citing security reasons, when the IRA campaign was at its height.
The practice was highly controversial and forced farmers and other residents to make long detours.
The decision to restore the Annaghroe and Knockaginney connections means that all of the roads and bridges formerly sealed off will finally be reopened, according to sources.
This is seen as a significant landmark in the restoration of peace and stability to the Border area and to Northern Ireland generally.
Dublin is said to be paying the "vast bulk" of the cost involved.
At a news conference, Mr Ahern pointed out that the intergovernmental conference, established under the Belfast Agreement to promote co-operation between Ireland and the United Kingdom, was meeting for the first time outside Dublin, Belfast or London.
He was "delighted" this was taking place in his own constituency of Louth.
"We hope it will be the last BIIGC that will happen in this mode. Hopefully, after March 26th we will have the involvement of the ministers from the devolved government in any future intergovernmental conferences," he said.
He added that the "absolute, cast-iron position" of the two governments was that March 26th was "set in stone" as the deadline for devolution. "Otherwise it will be dissolution and that is the strong message that we want to come out from this meeting today."
Commenting on the choice of location for yesterday's meeting, Mr Hain said: "It is a symbol of the incredible transformation that has taken place in the politics of the whole of the island that we have been able to stage this BIIGC for the first time in such a Border area."
Mr Hain congratulated all concerned on the success of the rugby match between Ireland and England at Croke Park. "The island of Ireland did itself proud on Saturday, on and off the field, and I want to congratulate the people of Dublin and indeed the people of the whole island of Ireland for making the events at Croke Park such a joyous occasion," he said.
"It was really a big privilege to be there and a fantastic symbol of how rugby and sport in general can bring people together and how far we have come, that that event should have happened at all in the way that it did."
Mr Hain said that in recent days, voters in the Northern Ireland elections had come to him seeking reassurance that, "You will dissolve if you don't devolve". He added: "That is the case. It's not a choice left to me any more."
Meanwhile, Mr Ahern said the issue of British army helicopters flying low over a recent Gaelic football match between Louth and Armagh a few miles away at Crossmaglen, Co Armagh, was raised with the British authorities "immediately after it happened".
"We got a formal explanation again today," he said. Mr Hain said the incident was "a regrettable mistake and was inadvertent rather than deliberate".
