In [Kyushu J. Math. 64 (2010), 81-144, arXiv:0904.2889], it is discussed that a certain subalgebra of the quantum affine algebra $U_q(\widehat{\mathfrak{sl}}_2)$ controls the second kind TD-algebra of type I (the degenerate $q$-Onsager algebra). The subalgebra, which we denote by $U'_q(\widehat{\mathfrak{sl}}_2)$, is generated by $e_0^+$, $e_1^\pm$, $k_i^{\pm1}$ $(i=0,1)$ with $e^-_0$ missing from the Chevalley generators $e_i^\pm$, $k_i^{\pm1}$ $(i=0,1)$ of $U_q(\widehat{\mathfrak{sl}}_2)$. In this paper, we determine the finite-dimensional irreducible representations of $U'_q(\widehat{\mathfrak{sl}}_2)$. Intertwiners are also determined.
