The Australian Government has confirmed plans to construct the new Western Sydney Airport (WSA) in the country.
Details on the plan to develop the WSA will be announced by the Treasurer in the Budget next week.
The government has decided to build the second airport in the city after Sydney Airport Group refused to take up the project under its ‘right of first refusal’ to build and operate the new airport.
In a statement, Australian Prime Minister Malcolm Turnbul said: “The Government has worked carefully to meet our obligations and we have been planning for either contingency – acceptance or rejection by Sydney Airport Group. We are well positioned to move forward on terms that are consistent with the terms of the notice of intention (NOI).”
To be constructed at Badgerys Creek in the western suburbs, the new airport is expected to play a major role in boosting the economic condition of Western Sydney and in creating additional job opportunities in the region.
During its construction phase, the new airport project is estimated to add more than A$1.9bn into the economy.
In addition, the new airport is expected to create 9,000 new job opportunities for the people in the region by early 2030s and another 60,000 in the long-term.
Slated to open in 2026, the second airport will also help reduce the passenger traffic at Kingsford Smith Airport.
Meanwhile, Sydney Airport Group, which owns and operates the Kingsford Smith Airport, still has three months left to review the material terms of the airport operation.
Sydney Airport Managing Director and CEO Kerrie Mather said: “Sydney Airport’s decision not to accept the WSA NOI on the terms provided is in the best interests of our investors who represent millions of Australians through their superannuation funds.
“Despite the opportunities that WSA will present, the risks associated with the development and operation of WSA are considerable and endure for many decades without commensurate returns for our investors.
“We are looking forward to continuing our positive and open engagement with the Commonwealth as we focus on delivering growth and a world class passenger and airline experience at Sydney Airport.”