Improvements to Majuro Hospital in Marshall Islands have moved a step closer with the President Kessai Note and Japan's Charge d'Affaires Akira Ikeda signing a five point two million US dollar deal, to cover costs until March next year.
The overall project, which will include the building of a new hospital annex facility and provide new equipment, is estimated to cost about nine million dollars over two years.
The signing of the initial arrangement last Friday sets in motion a process in Japan for the project to be tendered for by construction companies.
The Japan International Cooperation Agency is handling the bidding process and overseeing the project.
Local officials estimated that construction could begin by the end of the year.
Since 1980 Japan has provided over fifty million dollars in support for Marshall Islands infrastructure projects, with the bulk of the money going to fisheries development and road repairs.