Singapore authorities said on Saturday a local firm had won a S$24.7 million ($15 million) contract to design and build Asia's first low-cost airport terminal by early 2006. Construction of the terminal at Singapore's Changi Airport will begin by March as part of the wealthy city-state's bid to fend off competition from regional airports hoping to lure business from Asia's fast-growing budget airlines.
The Civil Aviation Authority of Singapore (CAAS) awarded the contract to Sanchoon Builders Pte. Ltd CAAS said the terminal was expected to be completed in early 2006 at a total cost of S$45 million and with initial capacity of 2.7 million passengers a year.
Singapore's authorities have stressed the importance of maintaining the island's air hub status in the face of new competition from fast-growing Asian airports such as Bangkok and Kuala Lumpur, and called for tenders for the project in July.