Plans to build a new road link from Derry to Tyrone have been hit with delays after approval was quashed in the High Court.
The major infrastructure project is set to benefit Donegal motorists as it would reduce journey times to Dublin.
The multi-million pound road project involves a new 85km road running from New Buildings in Derry, via Strabane, Newtownstewart, Omagh and Ballygawley, terminating near the border at Aughnacloy.
However, there are fears over the future of the project after last week’s court decision.
A court challenge was raised based on approval being given for the A5 upgrade in the absence of a minister.
Mr Justice McCloskey quashed the decision to proceed with the scheme after the Stormont department said it was no longer defending a legal challenge against the go-ahead.
Londonderry Chamber of Commerce President Jennifer McKeever said the quashing of approval for the A5 Western Transport Corridor scheme is “hugely disappointing and wholly unnecessary”.
Ms McKeever said the quashing by a High Court judge “is a major blow to the North West.”
She said: “The shelving of the A5 project is the latest evidence that the North West economy continues to count the cost of the inability of our politicians to form a Government.
“When the scheme was approved, the business community in the Derry city cross border region had high hopes that decades of lobbying had finally paid off – now it seems we have been let down once again.
“Long awaited work on modernising the Derry to Dublin route should be well underway but the power-sharing vacuum at Stormont has delayed this vital scheme further.
“Despite Brexit dominating the news, we can’t forget that issues of connectivity and access to staff, customers and markets continue to be a primary concern for our members.”
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