The money will go to a terminal extension, aircraft apron upgrade, and a new access roundabout on the New England Highway for two industrial estates.

Armidale Regional Council administrator Ian Tiley said he expected the all three projects to be completed in 2017.

“It’s vital our terminal is large enough now that our passenger number are going gangbusters,” he said.

“It’s so important to have that extra capacity.”

Council has allocated $2.5 million in their current budget for the terminal upgrade.

And the state government has put up more than $9 million to be spent across the three projects.

“Without the contribution from the state government … this would not be happening,” Dr Tiley said.

Northern Tablelands MP Adam Marshall said the project was about Armidale coming of age as a regional leader.

“The reason why the state government is willing to come to the party is because this is such a wonderful project,” he said.

“It’s about Armidale stamping its foot down … and realising our potential.”

Deputy Prime Minister Barnaby Joyce is also supporting the development.

He met with Dr Tiley last week to reaffirm his million-dollar election commitment to the new roundabout and to discuss further contributions to the project.

Council may need to take a $2.2 million loan to complete the development if they are unable to attract further federal assistance.

Paid overnight car parking could offset the interest on their loan should they fail to gain more commonwealth support.

Dr Tiley said if they needed to take a loan, it would be an interest only loan, at a historically low rate of about three per cent, over five years.

“This is the third big Christmas present this city has had this year,” Mr Marshall said.

“With the TAFE digital hub, the APVMA … and now this project, my goodness, this city is incredibly well set up now for 2017.”