The construction of a new terminal at Montenegro's Tivat Airport is expected to begin later this year.
Valued at around €40m, the expansion project will include the construction of a new terminal building, jetways, apron and a parking lot.
The airport is currently in talks with the European Bank for Reconstruction and Development (EBRD) for a loan of €20m, reported Balkans.com.
Airports of Montenegro, which operates both Tivat and Podgorica International Airport, expects to secure a loan by the second half of this year.
While the current planning phase that was expected to be completed in March has been delayed, tenders for a project consultant are likely to be issued within the next three weeks.
The airport is said to have been facing capacity issues for the past few years due to which Airports of Montenegro CEO Milovan Djurickovic considers the construction of the new terminal a priority.
The Montenegrin Government said in a statement: "Passenger growth at Tivat Airport has exceeded even the most optimistic of forecasts and has pointed towards the necessity to implement this investment as soon as possible.
"It is important to note that several meetings have taken place with the EBRD and that a principle agreement has been reached for the bank to approve this loan."
The Tivat Airport is the busiest airport in Montenegro and handled around 910,566 passengers in 2014, an increase of 4.95% from 2013.
Image: The expansion project amounting to €40m would include the construction of a new terminal building, jetways, apron and a parking lot. Photo: courtesy of Rasho.