The Taiwanese government will invest TWD463bn ($15.5bn) to build a new terminal and runway at Taoyuan International Airport near Taipei to accommodate growing traffic.
The 1,223ha airport will be expanded by a further 442ha to make room for a third terminal and runway.
The project, part of the country's Taoyuan Aerotropolis scheme, will see the addition of an aerospace industrial park and exclusive zones for cargo, passenger and logistics services in the surrounding areas, with scheduled completion in 2030.
According to the Taiwan Transportation and Communications Ministry, the project will be partly funded by the government with TWD$336.6bn ($11.47bn), while the remaining TWD126.4bn ($4.3bn) will be funded through private sector investments.
The airport operator is planning to announce tenders for construction of Terminal Three by the end of September 2012, with expected completion by the end of 2018.
Taiwan Taoyuan International Airport will be capable of handling 75 million passengers per year, more than double the airport's current capacity, to make it a transport hub in the East Asia region, the government said.
The proposed area will span 3,200ha and the Taiwanese government is expecting the project to generate TWD$2.3 trillion ($78bn) of economic benefit, including TWD84bn ($2.8bn) of tax revenue, and create 260,000 jobs.
By 2030 the cargo volume is expected to reach 4.5 million tonnes per year, while the total annual number of takeoffs and landings at the airport are forecast to reach 500,000 per year.
According to the airport operator, Taoyuan airport's Terminal One facility currently has a capacity of handling 12 million passengers and is anticipated to achieve capacity for 15 million passengers following its expansion.
The second terminal currently handles 17 million passengers per year.
Image: The budget concerns and land acquisition problems delayed the Taiwan government's Taoyuan airport expansion project five years ago. Photo: courtesy of Taiwan Taoyuan International Airport.