Reynolds construction firm shall implement the project with help from Germany, UK and the European Union.
Speaking shortly after the signing ceremony in Dar es Salaam, the Deputy Permanent secretary in the Ministry of Finance and Planning, Amina Shaaban said the Euro 40.4million grant was sourced from two funders.
Part of the fund, Euro 29.6million was sourced from the EU and UK-Aid and the remaining Euro 10.8million was from USAID.
She said the construction of the road will involve building a bridge across the Great Ruaha and is likely to benefit farmers along the Southern Agricultural Growth Corridor of Tanzania (SAGCOT).
“Farmers in Kilombero valley will also benefit from the road construction through rapid transportation of their produce,” she said, noting that the road is also likely to boost business and encourage more entrepreneurs to engage in commercial agriculture.
She welcomed development partners for their continued support geared at strengtheing the country’s economy by opening up agricultural opportunities along the southern corridor, and improving power services.
Infrastructure improvement was likely to boost investment in the agriculture sector, thereby improving people’s livelihood as well, she pointed out.
The Kidatu-Ifakara road is of crucial relevance as it connects Kilombero and Ulanga districts with a highway from the port of Dar es Salaam to Zambia, Malawi and the Democratic Republic of Congo (DRC).
On his part, Roeland van de Geer, the Head of Delegation of the European Union in Tanzania promised to continue supporting the government towards its endeavor to improve infrastructures.
He said that the EU, UKAID and USAID will also assist Tanzanian farmers to get reliable markets for their produce as this sector is vital for economic growth, employing over 70 percent of the population.