TOKYO (AP) -- Mitsubishi Corp. and Chiyoda Corp. have agreed to build a new airport for the Mongolian capital Ulan Bator, the latest in a flurry of overseas infrastructure deals for Japanese contractors.
Mitsubishi Corp. said Monday the new airport will be built about 50 kilometers (30 miles) southwest of Ulan Bator for about 50 billion yen ($500 million).
Mongolia's resource boom has increased the need for a bigger, more modern airport. The new airport will be designed to handle 2 million passengers a year and include a runway suitable for large aircraft and modern air traffic control systems.
Expansion of Mongolia's only airport, near Ulan Bator, is hindered by nearby mountains and harsh weather conditions.
Development of the new airport will be supported by an international loan through Japan's overseas development assistance.