Tanzania Railways Corporation (TRC) and two Chinese firms have signed a contract for construction of a phase five of Standard Gauge Railway project that will connect Isaka and Mwanza.
The China Civil Engineering Construction Corporation (CCECC) and China Railway Construction Company (CRCC) have jointly won the deal.
President John Magufuli and China's State Councilor and Foreign Affairs Minister Wang Yi witnessed the event in Chato, Geita on Friday.
Foreign Minister Wang Yi is in Tanzania for a two-day state visit.
Speaking after signing the contract, TRC Managing Director Mr Masanja Kadogosa said, the 341km SGR project will cost $1.326bn (equivalent to 3.0677tri/-)