Sarajevo International Airport is to receive a €25 million ($34 million) loan from the European Bank for Reconstruction and Development (EBRD) to help modernise and expand its facilities.
The airport is the main gateway to Bosnia and Herzegovina and the loan is being guaranteed by the nation's Government.
It will be used to fund a major expansion of the passenger terminal that will add 7,000m² (75,000ft²) to the current 10,000m² building. It will also allow for an expansion of the apron and rapid-exit taxiways.
"In addition to solving the airport's needs in light of future growth, the expanded terminal building will provide much higher quality of services to passengers, while improving the image of the country by offering it a modern gateway," says the airport's general manager, Bakir Karahasanovic.
Modernisation will stimulate further growth at an airport that has seen recent significant rises in passengers despite the economic downturn, says the EBRD.