The Project involves expansion of the airport infrastructure of LZIA comprising of constructing two new runways with associated taxiway system, apron, terminal building, ground transportation center, cargo facilities, supporting infrastructure and auxiliary facilities. After expansion, LZIA will have a design capacity for annual passenger throughput of 38 million, cargo throughput of 300,000 tonnes, and 300,000 flight movements, able to serve projected demand until 2030.

The Project will address the capacity constraints of LZIA by expanding the airport facilities to meet the growing demand for air travel. The Project will also contribute towards developing an efficient and comprehensive transport network in the region by integrating LZIA with surface transport and acting as a multimodal connection hub.

The Project outcomes will be increase in annual passenger throughput by 30% and cargo throughput by 129% in 2026 as compared to 2019 levels due to improved capacity and efficiency of air travel to and from Gansu. The Project will act as a catalyst in promoting economic and social development of the region by enhancing connectivity and access for trade, tourism, business, and other socio-economic activities, and thereby contribute to reducing regional disparities.

GoG is the executing agency, responsible for overall planning of the Project, guiding and monitoring its execution, and achieving planned results. GCAG is the implementing agency, responsible for implementing the Project under the guidance of the executing agency. Commercial operations of the Project are targeted to commence in 2025. NDB Loan will finance procurement of equipment and system components for the Project, following the country system procurement laws and regulations and complying with the core principles of NDB Procurement Policy.

The Project has been classified as Category A in accordance with the NDB Environment and Social Framework. The main environmental and social impacts include land acquisition and resettlement, diversion of basic farmland, noise and air pollution impacts on neighboring communities during operations. Adherence to country systems and implementation of management plans, including the E&S Impact Management Plan prepared in consultation with NDB, will minimize and mitigate these impacts.