Loyalist murals in the Shankill area were removed

The drive to remove loyalist murals and kerbstone paint from the Shankill Road was backed by community groups, schools and Belfast City Council.

The group behind the awards, ENCAMS, which runs the Keep Britain Tidy campaign, said the scheme was "one of the most important environmental projects in years".

The People & Places Awards are open to the 170 councils and land managers who work with ENCAMS to improve local environments.

Encams Chief Executive Alan Woods said the project had inspired communities throughout the UK who are struggling to come to terms with poverty, division and violent crime.

"I cannot over-emphasise just what an impact the Great Shankill clean-up has made in Belfast and throughout the UK," he said.

"This graffiti wasn't just damaging the environment, it was also a legacy of the past and its removal is a poignant symbol of hope.

"Graffiti and litter may seem trivial to some, but when people work together to make their environment a more pleasant place to live in - it breaks down barriers and creates a powerful unity."

The transformation has been nothing short of dramatic and I put this down to the council realising that the environment is as important an issue to people as education and social services Ian Cole Tidy Northern Ireland

The project, which was co-ordinated with the Housing Executive and the Northern Ireland Office, included direct consultation with the local community on how the area could be improved.

This included talking to local schools and churches - who helped with a big litter pick of the area.

Paramilitary groups were also encouraged to ensure those involved would not come to any harm.

The scheme has also been nominated for the campaign's "Award for Partnership", where Belfast will compete against projects from Edinburgh and Wigan.

Graffiti throughout the city has been reduced by 13% in the past year, with a 9% reduction in flyposting.

A crack down on litter louts throughout the city has resulted in a nomination for Best Initiative Award, which honours the council that has done most to improve their streets and open spaces.

Director of Tidy Northern Ireland Ian Cole said he was very impressed by the city's progress.

"Like any large city with a huge concentration of people, Belfast is bound to have experienced problems with litter, dog fouling, flyposting and graffiti," he said.

"And this was graphically displayed in our litter survey of 2002 - which stated our capital had major problems.

"The transformation since then has been nothing short of dramatic and I put this down to the council realising that the environment is as important an issue to people as education and social services."

The prizes will be presented in March at a two-day conference in Edinburgh where speakers from the government, police and councils will discuss a range of issues from shifting abandoned cars to cleaning up railway land.