The Abu Dhabi Fund for Development (ADFD) has agreed to provide an AED110m ($30m) loan to build a 117km two-lane road and seven bridges.

A memorandum of understanding (MoU) was signed between director general of ADFD Mohammed Saif Al Suwaidi and Republic of Madagascar Secretary General of the Ministry of Finance and Budget Andriambololona Vonintsalama.

This project is expected to drive the growth of country’s tourism and agricultural sectors, as well as connect the rural areas of the country.

"This project is another great example of what can be achieved through collaboration and shared vision for global progress."

The two-lane road will be built between the towns of Soanierana Ivongo and Mananara and will lead to the uninterrupted flow of agricultural produce to the markets, while also reducing the transportation cost of goods.

The new asphalt road will help in ensuring continued access to the towns throughout the year despite unfavourable weather conditions.

Abu Dhabi Fund for Development director general Saif Al Suwaidi said: "The government of Madagascar is extremely focused on the redevelopment of its core infrastructure as part of its priority to stimulate economic growth and lift its people out of poverty. Apart from facilitating the movement of goods and trade, such projects support the creation of jobs and social mobility.

"The eradication of poverty in developing countries is part of the fund’s core mandate. Financing roads and bridges reflects ADFD’s commitment to supporting infrastructure projects that contribute to the development of economic sectors and the wellbeing of the people in developing nations. We believe this project will provide deep and lasting benefits to the people of Madagascar."

Established in 1971, ADFD had previously funded a power project costing AED15m in Madagascar in 1979.

Vonintsalama said: "Our government remains focused on the delivery of infrastructure and services that will elevate the nation and provide seamless opportunities for growth to our people.

"This project is another great example of what can be achieved through collaboration and shared vision for global progress."