Kiribati and the Asian Development Bank have signed a 12 million US dollar loan to help the country rehabilitate the road network in South Tarawa.
It will involve rehabilitating 32 point five kilometres of the country's main road and 8 kilometres of access roads on the atoll of South Tarawa.
The road improvement project will also improve links to the seaport of Betio and the airport for the people of South Tarawa, making it easier and safer for people and goods to move around.
The ADB's regional director, Adrian Ruthenberg, says rebuilding the country's most important road will mean those living in South Tawara - 42% of Kiribati's population - will be better connected to clinics, markets, and other services in the administrative capital of Bairiki.
He says the project will also provide training and jobs for the women and men who will work to rebuild and maintain the roads.
The 32 year long loan carries an interest charge of one percent for the first 8 years and one point 5 percent for the balance of the period.