The Road Sector Support Project will specifically improve roads between Iringa and Dodoma, strengthening communications between two regions that are 260 kilometers apart. It will also go to the road between Tunduru and Namtumbo regions, which are 190 kilometers apart.
'These innovations will pave the way to increased economic integration and put the country on the path to greater growth,' JICA said.
The Iringa-Dodoma road is in poor condition, which is worsened in the rainy season when transit times more than double. The Tunduru-Namtumbo route is a difficult road on a vital trade corridor, namely to the Port of Mtwara, which is the export base for the south of the country, the agency said.
'Importantly, the southern part of Tanzania is considered to have tremendous potential for increased agricultural yields and it is expected that better infrastructure will boost its supply chain, develop the economy and improve livelihoods,' JICA said.
The grant will be implemented in collaboration with the African Development Bank and the Accelerated Co-financing Facility for Africa (ACFA).
JICA is one of the world's largest bilateral development agencies. In October 2008, the agency merged with the overseas economic cooperation section of the Japan Bank for International Cooperation (JBIC). As a result, JICA took over the 'soft loans,' formerly dispensed by JBIC, and the grant aid dispersed by Japan's Foreign Ministry.
