Taiwan said Wednesday it is planning to spend nearly two billion US dollars to build a new terminal at its main airport that will be capable of handling 27 million visitors a year.
Construction for the third terminal at Taoyuan International Airport in the island's north is set to begin in 2014 and completed four years later, said the Civil Aeronautics Administration.
The airport, which was inaugurated 30 years ago, has been a frequent target of criticism, with complaints ranging from leaking toilets and roofs to a lack of trolleys.
Last week, scores of flights were delayed after the baggage claim system in the second and newer terminal crashed due to a computer malfunction, prompting fresh calls to upgrading the airport.
Taiwan also needs to expand the airport amid a tourism boom since it relaxed its controls on Chinese tourists in 2008.
Taiwan authorities have said tourism grew in the island faster than anywhere else in Asia last year largely due to an influx of mainland visitors.