Changi Airport's Terminal 4 which will be ready in 2017 will cost $985 million.

The work being undertaken by Takenaka Corporation includes building a new passenger facility to handle up to 16 million travellers a year and other related works, Changi Airport Group said on Thursday.

T4 will have parking room for 17 narrow-body aircraft and four big planes. The parking stands will come with aerobridges for travellers to move from the terminal straight to the aircraft. If space runs out, travellers will be ferried by bus to the parking area across Airport Boulevard Road.

A new multi-storey carpark and another open-air car park will cater for up to 1,500 vehicles. There will also be a double-storey holding area for taxis waiting to pick up arriving passengers.

To improve access to and from the new terminal, a new road will be built to funnel traffic directly from T4 to the East Coast Parkway. A new bridge across Airport Boulevard Road will enable buses and other airside vehicles to move from T4 to new aircraft stands being constructed at a land plot near T3.

Takenaka Corporation also built Changi's T1 and upgraded T2, Changi Airport Group said.

It was one of five firms that bid for the project.