The Asian Development Bank (ADB) has announced the approval of a $75m loan to Mactan Cebu Airport in the Philippines.

The loan is being given for the expansion and renovation of the airport, which is expected to boost passenger traffic and support inclusive growth.

As a result, it has become the first large-scale public-private partnership (PPP) project awarded by the government.

The financing includes debt of PHP20bn ($450m) from a consortium consisting of BDO Unibank, Bank of the Philippine Islands, Philippine National Bank, Land Bank of the Philippines, Metropolitan Bank & Trust Company and Development Bank of the Philippines.

"The project will increase tourism, and support industry and agricultural activity."

Cebu is one of the major economic centres of the country and the Mactan Cebu Airport is designed serve up to 4.5 million passengers, but in 2014 it served more than seven million travellers, which is more than its capacity it could handle.

The expansion project is expected to include renovation of the existing passenger terminal, construction of new commercial facilities and construction of a new passenger terminal.

The passenger capacity for the new and existing terminal after the completion of the project is expected to be 12.5 million a year.

The project is likely to be developed under a 25-year concession agreement, which will include operation of both terminals and commercial outlets.

ADB Private Sector Operations Department investment specialist Christine Genalin Uy said: "ADB’s involvement demonstrates its commitment to assist the government in developing critical infrastructure, the lack of which has been hampering new investments in the country.

"The project will increase tourism, and support industry and agricultural activity, thus creating employment opportunities in the province of Cebu and its neighbouring provinces."