The Malaysian Airports Authority (MAA) has begun building a new terminal at Ibrahim Nasir International Airport, which is located at the eastern side of Hulhule' Island in the Republic of Maldives.
The terminal will cost $510m and includes the construction of two taxiways that will increase the number of aircraft that the airport can handle.
"This new facility embodies our hopes and our dreams for future generations of the Maldives," said MAA managing director Tan Sri Bashir Ahmad. "The airport is well connected with major airports around the world, serving as the main gateway into the Maldives."
The Maldives Government signed an agreement with the GMR Malé International Airport (GMIAL) consortium to convert Ibrahim Nasir International Airport into a global standard facility by 2014.
The consortium includes GMR and MAA, and will develop the airport on reclaimed land at the northern end of the runway.
GMR subsidiary GADL International will invest $20m in reclaiming the land and building a breakwater for the terminal.
The new terminal will enable the airport to handle five million passengers per year.
After completion, GMR will operate the terminal under a 25-year concession, which is extendable for a further ten years.
GMR holds a 77% stake in the venture, with the remaining 23% owned by Malaysian Airports Holdings.
MAA manages and operates 39 airports in Malaysia, including five international, 16 domestic and 18 short take-off and landing ports.
Caption: The new terminal will allow Ibrahim Nasir International Airport to handle more aircraft.