The US is paying $66.1 million of the total cost while the Government of Ghana would offer $7.5 million.
The President who is on a four-day tour of the Northern Region, urged commuters using the highway to bear with the slow pace of traffic as the construction works are likely to delay vehicular movement.
President Mills commended the Central Gonja District for undertaking 109 infrastructural projects including education, health and security and urged the assembly to continue with the good works for the fullest realisation of the Better Ghana Agenda.
The Minister for Roads and Highways, Mr. Joe Gidisu said the construction work, which will take 24 months to be completed will include resurfacing and tarring of the road to meet international standards.
He said the Buipe-Tamale road since its construction in the early 90s, has not been rehabilitated, saying government is concern about the maintenance of s roads country wide.
Mr. Salisu Be-Awuribe, Central Gonja District Chief Executive said the District is building a good human resource base through the sponsorship of a number of people to various educational institutions including medical students.
He said more than 1,000 youth have been engaged in various models of the National Youth Employment Programme while the District has also acquired construction equipment to improve on the road network in the area.
At Sankpala, the President inaugurated a clinic at the cost of GH¢87,144.
In a related development, the President will be celebrating May Day tomorrow at Walewale in the West Mamprusi District.

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