{{The African Development Bank has approved two loans totalling 232.5 million U.S. dollars for the 157.5-km road project from Arusha to Holili in Tanzania, and Taveta to Voi in Kenya.}}
According to a statement from the regional bank, the funds will help reduce the cost of transport and enhance access to agricultural inputs, larger markets and social services within the East Africa Community.
AfDB’s Regional Director for the East Africa Resource Center, Gabriel Negatu said, “East African Community seeks to improve regional transport infrastructure to support economic and social development programs 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.”
The Arusha-Holili/Taveta-Voi Road is one of the transport corridors of the EAC region meant to reduce the cost of doing business, increase competitiveness of the region on the global market and at the same time promote regional integration.
The Bank facility constitutes 89.1 percent of the total project cost.
The project, which is expected to be completed by December 2018, is also jointly financed by the Kenyan and Tanzanian governments, contributing 15.6 million dollars and 12.3 million dollars, respectively.
The Africa Trade Fund has extended a 0.74-million-dollar-grant for a small component for trade facilitation at the Namanga border, bringing to 262.2 million dollars the total cost of the project.
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