A business case is being prepared to submit to the Department of Transport on the Kenmare inner relief road.
Kerry County Council says this would enable the second phase of the relief road scheme to progress further through the design stage.
The council says it also intends to apply for funding again under the Specific Improvement Grant later in the year.
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It was responding to a query from Independent councillor Johnnie Healy-Rae, who sought an update on the project at the Kenmare Municipal District meeting.
