The western concourse will be stage two of the proposed $350 million project, with the southern concourse already under way and due to be completed later in 2010.
Infrastructure Minister Anthony Albanese says the upgrades will help the airport deal with a forecast doubling of passenger numbers in the next two decades.
"Canberra Airport currently handles three million passengers per year, a figure that is expected to more than double to 6.3 million by 2029," Albanese said in a statement.
"The extension and upgrade of the terminal facilities will significantly improve the airport and its capacity to accommodate the forecast passenger growth."
The upgrade is expected to be complete in 2012 and will include separate departures and arrivals levels, up to 22 additional check-in counters, up to six extra aerobridges and international and customs processing capabilities.
Source: AAP NewsWire
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