The African Development Bank (AfDB) has sanctioned two loans totalling $232.5m for the 157.5-km road project from Arusha to Holili in Tanzania, and Taveta to Voi in Kenya.

The project will cut down transport costs, boost access to agricultural inputs and larger markets in East Africa, increase competitiveness across the region in international market and promote regional integration.

Of the total loan amount, Kenya will receive $113.12m and Tanzania around $120. A bank loan will meet 89.1% of the cost of the project, which is expected to be finished by the end of 2018.

The project is also jointly funded the Kenyan and Tanzanian governments, contributing $15.6m and $12.3m, respectively.

The Africa Trade Fund has contributed a grant of $0.74m for trade facilitation at the Namanga border, which brings the total cost of the project to $262.2m.

The Arusha-Holili/Taveta-Voi road project links the Northern Corridor at Voi to the Central Corridor across the common border at Holili/Taveta through Arusha, Babati to Dodoma and Singida.

"The project will cut down transport costs, boost access to agricultural inputs and larger markets in East Africa, increase competitiveness across the region in international market and promote regional integration."

The project will include the construction of the 42.4km Arusha Bypass and dualling the 14.1km Sakina-Tengeru section and construction of two roadside facilties at Tengeru – one on either side of the dual carriageway in Tanzania.

The project will also include upgrading the 89km Taveta-Mwatate road and construction of the 12km Taveta Bypass and two roadside facilities along Kenya’s Mwatate-Taveta Road, with one each at Bura and Maktau.

AfDB East Africa Resource Centre regional director Gabriel Negatu said that the road had been identified in the East African Regional Integration Strategy Paper and the East African Transport Strategy and Regional Road Sector Development Programme of November 2011 as a priority for intervention.

"The East African Community seeks to improve regional transport infrastructure to support economic and social development programmes in the region, promote tourism and foster regional integration and at the same time reduce the cost of doing business by supporting cross-border and international trade," Negatu added.