The Asian Development Bank (ADB) is to provide a loan of $40m to help Zvartnots International Airport in Yerevan, Armenia, construct a new terminal.
The ADB loan will fund the $173m cost to develop a new two-storey terminal building at the airport to supplement an existing concourse.
The new terminal will enable Zvartnots International Airport to increase its number of destinations and increase its frequency of flights.
After the terminal becomes operational in 2012, the airport is expected to increase its capacity from about two million a year to 3.2 million passengers a year.
Zvartnots International Airport, which was privatised in 2002, is operated by Armenia International Airports (ArIA) under a 30-year concession granted by the government.