Minister of Transportation and Communications Miguel Marques Gonçalves Manetelu told ministers on Friday that the project includes upgrades to the runway, taxiways, aprons, control tower, passenger terminal and supporting infrastructure.

The government said the project faces challenges related to land acquisition and coordination between the various components being delivered by development partners.

Works are scheduled for phased completion by 2028.

The current redevelopment program began in 2021 when the Asian Development Bank approved a US$135 million loan to expand Presidente Nicolau Lobato International Airport. The project has since expanded through partnerships with the ADB, Japan and Australia.

A key component is the extension of the runway from 1,850 metres to 2,500 metres, allowing larger aircraft to operate and helping the airport meet international aviation standards.

In February, the government signed a contract with Japan's TOA Corporation to build a new passenger terminal funded by the Japan International Cooperation Agency (JICA). The terminal is expected to take 28 months to complete.

Australia is also funding airport support infrastructure and associated facilities.

The project is intended to increase the capacity of Timor-Leste's main international gateway, improve air connectivity and support future growth in passenger traffic.