Japan and Solomon Islands have signed a $US27 million dollar aid deal that includes a major upgrade of Honiara's main Kukum highway.
Construction on the road is set to start in August.
The Solomons' Prime Minister, Manasseh Sogavare, says the project is very important to the economy and to the road travelling public.
It also includes measures to counter ccongestion at the city's Central Market and the City Council Roundabout and the construction of two bridges over the Mataniko River.
