Changi Airport will spend close to $1.3 billion to build Terminal 4 as well as new roads and aircraft parking bays to support the capacity growth. Work on the facility and infrastructure will start this year and be completed in 2017, Changi Airport Group said on Friday.

T4 to be built where the old Budget Terminal was located will be a two-storey high building designed to cater mainly to budget carriers and regional airlines that operate single-aisle aircraft.

But unlike the spartan Budget Terminal, it will offer passengers more comfort and services, the airport said.

For example it will provide aerobridges so people are sheltered from the rain and sun instead of having to board and disembark aircraft using mobile stairs. There will also be more shops and restaurants.

The new terminal will also offer more self-service check-in kiosks as well as bag tagging and drop-off counters for travellers.

As part of the development, Changi Airport Group will clear space for new aircraft parking bays across Airport Boulevard.

New roads will be built to make it easier for buses and other vehicles to move between the new terminal and parking area.