SINGAPORE - The development of Myanmar's new airport is a step closer to getting off the ground after a consortium inked a Framework Agreement with Myanmar's Department of Civil Aviation (DCA) on Saturday.

The consortium comprises Japan's JGC Corporation, Singapore-listed Yongnam Holdings and Changi Airports International.

A consortium spokesman said that a feasibility study is being undertaken at the moment and the estimated project cost is US$1.5 billion.

The signing of the Framework Agreement marks an important step towards the eventual inking of the Hanthawaddy International Airport concession agreement.

In October 2014, the consortium was officially named by Myanmar's DCA as the successful tenderer for the design, construction and management of Hanthawaddy International Airport on the basis of a public-private partnership.

Located on a site of approximately 9,000 acres, 80 km northeast of Yangon near Bago, the new Hanthawaddy International Airport is expected to have an initial capacity of 12 million passengers per annum, making it the largest airport in Myanmar.

Once operational, the airport will become the main international gateway into Myanmar, particularly the Yangon metropolitan area - the heart of commerce to a large emerging economy of more than 50 million people.

Given its capacity, the new Hanthawaddy International Airport will bring about a boost in global air connectivity for Myanmar, bolstering the flow of business and leisure travellers.

The airport project is planned for completion by 2022. A portion of the project cost will be supported by the Official Development Assistance (ODA) loan from the Japanese government, to which the Myanmar government plans to apply following the signing of the Framework Agreement.

Further discussions will be held between the consortium and Myanmar's DCA upon the signing of the Framework Agreement.

JGC holds the biggest interest of 55 per cent in the consortium. Yongnam and Changi Airports International hold 25 per cent and 20 per cent respectively.