Lifford and Strabane have been dealt a huge blow after funding for the much-publicised Riverine Project was pulled.
The €6 million plan was supposed to regenerate the area and bring the two communities together.
A series of improvements including cycle lanes, bridges and art instillations was planned.
But the Special European Union Programmes Body said today the project has been scrapped because of a lack of funding.
There has been so far no comment from Donegal County Council.
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