The $60 million Rhi-Tiddim project will be implemented by Indian public sector infrastructure company Ircon and is slated to be completed by December 2014. Ircon will also continue to maintain the road beyond 2014 along with Myanmar's public works department.
The agreement was signed by the two sides in the presence of India's External Affairs Minister S.M. Krishna and Myanmar's construction minister here, Indian officials said.
"The road will connect Rhi in Mizoram with Tiddim in Chin. The project will help bolster trade at the Rhi-Zowkhatahar border trading point between India and Myanmar. This is the second such road project after the Tamu-Kalemyo-Kalewa road," the officials said.
The 161-km Tamu-Kalemyo-Kalewa road was completed in January 2001 and since then, India had maintained the road till 2009, when it was handed over to Myanmar.
The two roads are part of bilateral border roads development initiative that began with a memorandum of understanding signed in 1997.
"The work on the last 28-km stretch of from Kyigone to Kalewa will be completed by April 2012," the officials said.