It will include a new community centre, linear park and increased pedestrian and cycle paths.
Funding of €1.5 million is being announced for the development of a commercial hub in Athlone.
The project will focus on the Monksland area of the town and include a new community centre, linear park, and increased pedestrian and cycle links between residential and commercial areas.
The Rural Regeneration Fund has already seen investment of €3.6 million dedicated to the construction of a new enterprise hub in the area, with another €3 million going to other projects in Edenderry, Ferbane and Borris-in-Ossory.
Local independent TD Denis Naughton says the aim is to create a space which will drive employment in the wider midlands region:
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