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Nicaragua's international airport authority EAAI plans to build a new airport on Ometepe island in Rivas department, local paper Nuevo Diario reported.
Construction will begin in 2011 once the airport's design is ready, and will take an estimated eight months to complete.
The project is expected to cost some US$8mn in a first phase, the paper reported.
The new terminal, which will have a 1.5km runway, will be built on a 15ha site located in the town of Las Palomas, some 2km away from the island's main city, Moyogalpa.
Airlines from Costa Rica, Cuba, Venezuela, and Canada have already expressed interest in operating direct flights to and from the island, according to the report.
Ometepe island, located on the Cocibolca lake, is one of Nicaragua's main tourist destinations. The island is only currently accessible via ferry.