Brazilian construction company, Odebrecht will carry out the expansion work at Havana's International Airport, Jose Marti.
Digital magazine Cubacontemporanea quoted Odebrecht's Cuban representative as saying that the upgrade of terminal 3 will cost around $207m.
The expnasion is aimed at offering more efficient services at rush hour to close to 2,000 passengers using the airport.
The Jose Marti received three million passengers in 2014, a number that is expected to rise with the announcement of normalisation of ties by US President Barack Obama and Cuban President Raul Castro.
According to the new regulations announced in January 2015, Americans would be allowed to travel to Cuba without needing permission from the Treasury Department, as long as the travel meets certain criteria.
The new rules would also allow travel agents and airlines to book tickets for US citizens to Cuba without a special license from the Treasury Department's Office of Foreign Assets Control (OFAC).
Xinhua reported that Cuban officials had said that Cuban tourism had seen a 16% rise in January from the same time last year, following the announcement of rapprochement.
The Jose Marti expansion will be the construction company's third major project in Cuba, reported Fox News Latino.
The first was the extension of the Mariel Special Development Zone which included funding of more than $800m that was provided by the Brazilian Development Bank. A subsidiary of the firm also manages the 'September 5' sugar mill in the south-central province of Cienfuegos, with an operating contract for 13 years with the Cuban state enterprise Azcuba.
Image: Havana's Jose Marti international airport. Photo: courtesy of AirportCuba.net.