Taiwan’s Government has preliminarily agreed to provide funding of TWD60bn ($2bn) for Taoyuan International Airport (TIAC).

TIAC will utilise the capital to meet its short term expenditures, reported Taipei Times.

At the start of the month, the airport had sought government support as the Covid-19 crisis hit its revenues.

These conditions affected funding for the airport’s construction projects, which require roughly TWD150bn for completion.

The airport’s northern satellite concourse is planned to be launched by the end of 2024.

Plans are also underway to complete the construction of a third terminal in 2025, which is anticipated to annually handle up to 45 million passengers.

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TIAC was quoted by the publication as saying: “These projects would help upgrade the Taoyuan airport’s capacity, so it can become an important air hub in East Asia, which would serve as a significant indicator of Taiwan’s competitiveness.”

From March 2020, passenger traffic at the airport significantly reduced due to the Central Epidemic Command Center imposing a stringent entry policy to prevent the spread of Covid-19.

In 2021, the airport’s passenger volume stood at 909,000, which is said to be a record low. In total, the airport suffered losses of TWD11.3bn.

So far, it has taken loans of more than TWD10bn to manage daily operations.

TIAC was further quoted as saying: “Our assessment was that we would need government assistance in the short term to build the third terminal and third runway.”