By Jawad Ahmed ISLAMABAD, Feb. 7 (INP-WealthPK): Pakistan is working to develop Gwadar peninsula as a significant port and trading hub, especially for trade with China. The two countries have signed a number of memorandums of understanding (MoUs) for cooperation in various fields. The mega China-Pakistan Economic Corridor (CPEC) project covers the establishment of a special economic zone (SEZ), free trade zone, and export processing zone in the region for economic development. New Gwadar International Airport (NGIA) is a new greenfield airport being built in Gwadar under the framework of the CPEC. The NGIA is an important project of the CPEC agreement, and China is investing millions of dollars for this project. The NGIA is being developed over a 4,300-acre area, and will be the country's largest airport. This greenfield airport is necessary keeping in view the increased trade activity in the country. It will have an upgraded terminal structure connected to a cargo terminal with refrigeration capabilities for perishable commodities and a 30,000-ton-per-year handling capacity. The NGIA will accommodate narrow-body planes such as the ATR-72 and Boeing 737-900, as well as wide-body aircraft such as the Airbus A380 and Boeing 747-400. Development timeline The planned Gwadar Airport is important for the success of the Gwadar Port and its free zone. This project is a joint venture by Pakistan, China and Oman to handle domestic and international flights. Initially, the project PC-1 was approved by Executive Committee of the National Economic Council (ECNEC) in January 2010, with the estimated cost of Rs7.675 billion, from which $17.50 million (Rs643.1 million) have already been granted by Oman. However, the project was revised and approved in 2015 by ECNEC with a revised cost of Rs22.2 billion. Now, the current government has proposed revising its cost for the second time due to a significant increase in the scope of work and exchange rate fluctuations. The Central Development Working Party (CDWP) reconsidered the project, modified and revised PC-I for second time, and ECNEC approved a cost of Rs51.298 billion. The project's expected cost is 138% more than the revised cost from 2015. Funds will be originated from different sources: Pakistan Civil Aviation Authority (PCCA) will provide Rs750 million, while Rs16.08 billion will be granted under the Public Sector Development Program (PSDP). A total amount of over Rs643 million has already been provided by Oman. China is the main fund provider for the NGIA and has allocated Rs33.83 billion. The share of Chinese grant in total construction cost is over 63%. This airport is likely to become operational by the end of 2023. Once it is completed, the NGIA will be an iconic project for the modernisation of the Gwadar region. It is strategically important for Gwadar's infrastructural and economic growth, as well as connecting the city to other cities and rest of the world via air transportation. Furthermore, it would also promote economic activities in the region through improving economic and commercial cooperation between Pakistan and China, as well as strengthening friendship between the two countries.