The Taoiseach said he is confident that IRA weapons will be put beyond use and the impasse over decommissioning resolved.
In his keynote address to party members at the Fianna Fáil Ard-Fheis in Dublin tonight, Mr Ahern said: "The implementation of the Good Friday Agreement has been slow and difficult. The institutions have shown that they can work well, if given the chance.
"I am equally confident the time is approaching when arms will finally be put beyond use, to allow the continued operation of inclusive democratic institutions."
Mr Ahern was said he was also confident about the chances of the policing board, set up to reform the RUC under the terms of the Belfast Agreement.
"I am confident a new and widely acceptable police service will now be established in line with the Patten Report," he said.
Following yesterday's move by Ulster Secretary John Reid to declare the ceasefires of the UDA and LVF as over, Mr Ahern said: "Any future constitutional change will occur only in accordance with the terms of the Good Friday Agreement. No actions by small splinter groups will ever alter that."
He said as the current holders of the presidency of the UN Security Council, Ireland would be an example of how to bring about peace.
"The special contribution we can make is to complete the healing on our own island - to see to it that never again will we endure the terrorism of the Omagh bomb, of the intimidation of children walking peacefully to school.
"We can prove that terrorism is not inevitable - that peace is not impossible."
Mr Ahern also addressed issues of the European Union and the forthcoming referendum on abortion.
Following the rejection of the Nice Treaty, on extending the EU, Mr Ahern told delegates: "We have nothing to fear and much to gain from enlargement."
On abortion he said: "I am fulfilling my promise of giving the Irish people the final say on whether abortion should be legal. Government is about tackling difficult and sensitive issues. It is not about running for cover."
Mr Ahern also said the Government had eight months to run and fully intended to see out the end of his term.
He also promised a world class health service for Ireland and praised the efforts of the Minister for Health and his Department for their achievements so far. He said the final step in this process would be completed this year when the final steps of a Health Strategy would be put in place.
The Taoiseach praised what he called the most successful coalition government in the country’s history.