A new runway and terminal will be added to the airport, after the federal government approved a A$181m ($135m) loan for the expansion.
Sunshine Coast Mayor Mark Jamieson said: “The Sunshine Coast Airport expansion is one of the region’s game-changer projects identified in the Regional Economic Development Strategy 2013-2033 and now with the major project approvals in place and access to this loan confirmed, council is able to go ahead with the construction of the new runway, apron expansion and related infrastructure.
“The estimated net benefit of the loan to council – based on the loan terms and conditions – is approximately $1m depending on the drawdown of funds and this represents the value of the Commonwealth’s contribution towards enabling this significant regional infrastructure project to proceed.
“It will ensure we have an airport that can accommodate larger, more fuel efficient aircraft, enabling more direct flights to more locations in Australia, Asia and the Western Pacific."
The council first requested a concessional loan from the government more than two years ago.
The Queensland Treasury (QTC) negotiated the loan terms and conditions with the Department of Infrastructure and local government officials.
The expansion project is expected to contribute A$4.1bn ($3.06bn) to the Sunshine Coast economy between 2020 and 2040.
Jamieson further added: “It will ensure we have an airport that can accommodate larger, more fuel efficient aircraft, enabling more direct flights to more locations in Australia, Asia and the Western Pacific.”
The new runway and associated infrastructure is expected to be implemented by 2020.