Authorities of Poland's Warsaw Chopin Airport have signed an agreement with Pekao bank to finance zl600m (€145m) for modernisation.
The investment would be utilised in modernising the old terminal, improving road access and building a five-star hotel.
Following the upgrade, the passenger handling capacity at the airport will increase to 22 million a year.
Director of the airport Michal Kaczmarzyk said that the airport needed an upgrade as passenger numbers were seeing a steady increase.
"In 2014, we served 10.5 million people, and in 2015, we expect to serve about a million more," Kaczmarzyk said.
"In order to maintain the highest standards of service for both passengers and airlines in spite of growing intensity of usage of the airport, we want to invest in advance in developing infrastructure."
Warsaw Chopin Airport has seen an 11.3% increase in passenger traffic in 2013 over the previous year, and is one of the fast growing airports in the European Union.
"The modernised terminal will be open for passenger use this June. The completion of this investment will maximise the capacity of the entire airport," Kaczmarzyk added.
The construction of the five-star Renaissance Hotel at the airport likely to be completed by the end of this year. The 225-room hotel will also have several conference rooms, a restaurant, a fitness centre and a swimming pool.
Image: An aerial view of Poland's Warsaw Chopin Airport. Photo: courtesy of Warsaw Chopin Airport.