Both men have been taken to the Serious Crime Suite at Musgrave Police Station in Belfast for interview.
Detective Inspector O’Flaherty said: “Today’s arrests are part of an ongoing investigation into the activities of the New IRA, including a security alert which took place in the Fahan Street area of Derry on March 14, 2022.
“Searches during the alert resulted in the removal of component parts of an explosive device, a timer power unit, and three pipe-bombs, which were declared viable devices.
“These were located in an area of undergrowth in a residential area.
“We understand the impact our operational activity can cause the local community and want to assure them we seek to plan activity to maximise safety, minimise any disruption, and remain grateful for their continued support.
“I also would ask anyone with information or concerns about illegal activity to contact us in confidence on 101.”Information can also be provided to Crimestoppers anonymously on 0800 555 111 or online at www.crimestoppers-uk.org