The project will be undertaken after parliament passed a bill authorizing government to obtain K16 Billion from the International Development Association of the World Bank for the project.
Presenting the bill in Parliament, Minister of Finance Goodall Gondwe said several sections the corridor are in bad shape and making transportation of goods very difficult.
"Some sections o the corridor that need attention are the 40 kilometre stretch between Karonga and Singer, the 60 kilometre stretch between Bwengu and Chiweta and the 100 kilometre stretch between Lilongwe and Kasungu " said Gondwe.
Gondwe also disclosed that apart from rehabilitation works on the corridor, part of the funds will be used for equipping border posts with modern facilities to facilitate speedy custom procedures for business people.
The Finance Minister also disclosed that the project will have a social infrastructure component which will involve carrying out massive road safety awareness campaigns and purchase of breathalyzers to reduce the drunk driving, deemed a major contributor to road accidents.
After a lengthy debate, most Members of Parliament from both sides of the House commended government for the project but emphasized on the prudent utilization of resources once the project takes off.
The project will be implemented by the Ministry of Industry and Trade and the Malawi Revenue Authority.