Over €35 million in State funding is to be provided for the development of a new pier on Inis Oírr, in Co Galway.
The announcement follows a detailed review of the project, which was submitted to the Department of Rural, Community Development and the Gaeltacht earlier this year.
The long-awaited improvement works will involve an extension to the existing facility and increased space for vessels to be moored.
The plans also involve the construction of a breakwater, to give better protection from waves and storm surges around the harbour area.
At present, access to the pier is sometimes compromised by tidal conditions.
The redevelopment was first mooted around 20 years ago, due to increased passenger numbers and ongoing safety concerns.
In 2021, the business case for the works was approved by government and the project went to tender in 2023.
Minister for Rural and Community Development Dara Calleary announced that funding of €35.75 million has been approved, to allow Galway County Council proceed with the plan.
Minister Calleary said the investment would support access for Inis Oírr residents and the 200,000 visitors to the island each year.
He said the Government was committed to supporting appropriate and ambitious infrastructure for island communities.
It is the biggest single project to have been funded by the Department, since it was established in 2017.
The minister said the financial package "reinforces the Government’s commitment to island communities".
Galway County Council, which has responsibility for the infrastructure, said the enhancement programme will improve connectivity for residents and visitors alike, as well as benefiting the local economy.
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In 2017, the local authority was told to implement enhanced safety measures on the pier, after a gangway came loose from a passenger ferry, causing two people to enter the water.
The Marine Casualty Investigation Board said the incident was caused by the vessel drifting off berth.
Investigators identified a lack of management in terms of crowd control at the pier, as well as cargo and vehicles causing congestion there.
The announcement forms part of the National Development Plan.
Work on the pier extension is expected to be completed by late 2027.
Bainisteoir of Comhar Caomhán Teo Antoine Ó Coisdealbha said they have been pushing for the development of a new pier for a long time and are delighted that it has come to fruition.
Speaking on RTÉ's Morning Ireland, he said it will bring "huge improvement" to island life and make it safer.
"It will make the whole island operation and way of living safer for people to go up and down the pier," he said.
"The pier extension is going to add another 135m of key space, so that allows for more vessels to come in - more fishing vessels, more small pleasure crafts. It will be a huge improvement on the island as a whole."
Mr Ó Coisdealbha said planning was initially improved in 2005 with construction due to start in late 2007 or early 2008, but the plan fell victim to the financial crash.
He said it is now "all systems go" and work is expected to start onsite by spring 2026.