The Philippines Government is to construct a new terminal at Diosdado Macapagal International Airport (DMIA) at the Clark Freeport Zone in Pampanga, Philippines, so it can handle an expected increase in passenger traffic.

The new terminal will cost PHP12bn ($272.7m) and will take three years to complete, according to an airport official.

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Clark International Airport president and CEO Victor Luciano said that the facility, which could handle ten million passengers a year, will boost DMIA as the second-largest airport in the country, after Ninoy Aquino International Airport.

"At present, our terminal capacity is very limited," he said. "Our current passenger terminal is being expanded to serve 2.5 million passengers a year. This has been signalled by the arrival of AirAsia in DMIA."

The new budget terminal will mark the expansion of DMIA and meets the government’s plan to make DMIA a gateway terminal for bigger airlines. Luciano added that funding for the new terminal will be sourced from a public-private partnership programme.

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Construction of the new terminal will begin once the Department of Transportation and Communications approves the project, reports by journal.com. The government may include the terminal as a separate project from the scheduled overall development of Clarke as an international gateway.

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Approximately 800,000 passengers are carried by AirAsia from the airport per year. This is expected to grow by half a million passengers each year over the next four years.

Caption: The new budget terminal at DMIA will take three years to complete. Credit: DMIA