The road is expected to unlock transport barriers in the southern regions and boost business activities with neighboring Mozambique.
Upon completion, the road will link Mtwara port and Mbamba Bay port on Lake Nyasa, facilitating shipment of construction, agro-produce and manufactured goods crossing the border to trade spots in the regions.
Treasury permanent secretary Emmanuel Tutuba said the total project cost is $119.65m where the government contributes 1.29 percent of the cost, that is, $3.31m.
The project is in line with the five year development plan phase three for the building of a competitive industrial economy to enhance human development through improvement of infrastructure and sustained growth of reliable energy sources, he stated.
The disbursed loan increases the AfDB portfolio in the country from $2.27bn to $2.39bn, intended to enhance accessibility of the Mtwara Development Corridor, fostering regional developments through improved access to Mtwara port from the port of Mbamba Bay.
Rogatus Mativila, the chief executive officer for the Tanzania Roads Agency (TanRoads) said that the first segment of the road covers Mnivata to Mitesa (100 kilometers) and the second from Mitesa to Masasi (60 kilometers).
“The project will also involve construction of an 84 meter bridge at Mwiti village, three bus terminals for Mnivata, Newala and Masasi. It will also cover construction of silos for cashew nuts storage in Mtwara, two X-Ray machines for two health centers in Masasi and two ambulances and student dormitories in the areas where construction will take place, the CEO noted.
AfDB East Africa Region deputy director general, Abdul Kamala said that the board of directors approved the loan on September 22, strengthening ties with Tanzania through facilitation of key development projects.
“AfDB expects that upon completion of the project, the southern regions’ contribution to the country’s economy will increase by 20.6 percent. In disbursing the funds, the bank contributes to Tanzania economic developments in opening its borders for intra-regional trade,” he added.