(Bloomberg) -- Tanzania and Burundi have signed an agreement to build a $900 million railway that will connect the neighboring East African nations. 

The two sides signed a memorandum of understanding to construct a 282-kilometer (175-mile) line from the western Tanzanian town of Uvinza to Burundi’s capital Gitega. Finance and transport ministers from the two countries signed the deal in the western Tanzanian town of Kigoma on Sunday, Tanzania’s finance ministry said in a statement. 

Tanzania, which wants to become a regional trade and transport hub, is building a standard gauge railway line to connect the port of Dar es Salaam to landlocked neighbors, including the Democratic Republic of the Congo. 

The two governments will jointly seek financing for the railway, Tanzania Finance Minister Mwigulu Nchemba said, adding that the final cost “will likely not exceed $900 million.” He didn’t provide details on the source of financing.

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