Ledcor Construction has secured a C$6.44m ($4.9m) contract from Transport Canada to modernise and improve key areas of the Penticton Airport Terminal Building.
The project will see the reconfiguration of the main concourse and extra space created for an expanded arrivals hall.
There will also be newly-built airline check-in counters, a baggage claim area, food service space, offices, rental car kiosks and add an additional set of washrooms.
Plans are in place to expand the existing pre-board screening room, holdroom and baggage storage areas.
Minister of Transport Marc Garneau said: “The number of passengers and aircraft using the Penticton Airport in the last two years has grown rapidly. In 2014, we invested C$7.53m to repave the airport runway and taxiway, as well as expand the airport’s passenger holdroom.
“Today’s additional investment will enhance the airport terminal building, and is important for improving airport safety and security at this busy airport that services communities within the South Okanagan.”
The construction work is scheduled to start this year and will take two years to complete.
Once finished, the new facility will allow the airport to accommodate the growing number of traffic while improving safety, security and the overall passenger experience.
The latest project builds on the recent holdroom expansion in 2016, which doubled seating capacity to accommodate the significant growth in passengers.
The Penticton Airport terminal building was originally constructed in the early 1960s as a single-storey wood-framed structure. It was partially modernised and expanded in the early 1990s.