President John Mahama and his Turkish counterpart Recep Tayyip Erdogan will tomorrow break ground for the official commencement of a new terminal at the Kotoka International Airport.

The new terminal, to be known as Terminal Three (T3), is expected to take pressure off the existing two terminals, improve the existing on-ground infrastructure in line with growing international travel demand, and position the country as an attractive aviation hub in the sub-region.

President Mahama last week told Parliament while presenting his fourth State of the nation Address that: “Work is currently on-going on an ultra-modern international terminal to be known as Terminal Three (T3). It is designed to accommodate five million passengers a year and will process 1,250 passengers an hour. It will also have six boarding bridges.

“A Turkish construction company has taken possession of the site and already started working feverishly. I will have the honour to be joined on the March 1, 2016 by the Turkish President Recep Tayyip Erdo?an to cut the sod for official commencement of work on this monumental aviation project.”

The Ghana Airports Company Limited (GACL), on the strength of its own balance sheet, secured a loan of US$250million to undertake construction of the new terminal.

Managing Director of the company, Mr. Charles Asare, told the B&FT that the funds have been secured from a consortium of banks led by Ecobank Capital.

The GACL last year announced that it was to expand facilities at the Kotoka International Airport to accommodate the increasing passenger throughput and increasing number of airlines servicing the KIA.

Part of the proposal was constructing the third terminal to be known as Terminal 3 within the KIA enclave. “It is not just Terminal Three but also the runway, taxi-ways, the aprons, ground lights, underground fuel lines and runway lights,” Mr. Asare said.

Management of GACL, following the promulgation of the Airport Tax Amendment Act in 2013 -- which allows the GACL to retain 100 percent of its revenues - turned to private capital to improve aviation infrastructure in the country.

Prior to amendment of the Act, 60 percent of all airport taxes went directly to the Ghana Revenue Authority to support the national budget -- while GACL retained just 40 percent.

Mr. Charles Asare, Managing Director of GACL, earlier told B&FT that the company has set up a special fund solely for airport infrastructure.

He said 70 percent of the revenue from its Airport Passenger Service Charge (APSC) will be kept in the fund to service the loan.

GACL has also raised an additional US$150m capital to finance the development of existing regional airports in the country.

The US$150million is to be expended on the rehabilitation of Sunyani, Wa aerodromes; as well as construction of a new airport at the Volta regional capital, Ho.