The device was discovered following the search of an intercepted car.
A National Museum employee, charged in connection with the seizure of a Semtex bomb, has been granted bail.
The device was discovered following the search of an intercepted car near the border in Monaghan in July.
Simon O’Donovan of Sperrin Road in Dublin is charged with possessing an explosive device.
At a High Court bail hearing today, it was alleged the 44-year-old left his place of work at Collins Barracks with a bag on the 22 July, and was later observed meeting a co-accused and showing her the contents of the bag before she took possession of it.
Detective Seargeant Shane Noone told the court he had concerns if granted bail, the accused would continue to engage in activities of the New IRA and may interfere with and intimidate witnesses.
The court heard the explosive device was capable of resulting in the loss of life, and was stored in Collins Barracks for a period of time, which posed a significant risk to members of the public.
Mr O’Donovan was granted bail with conditions, including an own bond of €10,000, an independent surety of €30,000 and a curfew of 10pm to 7am.
The accused must also stay away from Dublin 7 and Collins Barracks and must not contact anyone in Saoradh.
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