A consortium led by Singapore’s Yongnam Holdings Ltd. won a $1.4 billion contract to build the airport in Myanmar’s Yangon, after a previous deal given to Incheon International Airport Corp. was canceled.

Yongnam will develop the Hanthawaddy International Airport, Myanmar’s civil aviation agency told reporters at a briefing today. The group, which also includes Changi Airport Planners and Engineers and Japan’s JGC Corp., was invited to rebid for the project after negotiations between the government and South Korea’s Incheon broke down earlier this year.

Yongnam shares surged in Singapore the most in more than six months in intraday trading after the contract was announced. Upgrading the airport is part of the government’s effort to create jobs in one of Asia’s poorest countries. The U.S. eased sanctions on Myanmar in 2012 and the European Union and Japan wrote off loans owed by the nation, following which Coca-Cola Co., PepsiCo Inc. and Unilever Plc announced investments.

The new Hanthawaddy airport is about 50 miles (80 kilometers) from Yangon. The current Yangon International Airport is 15 kilometers from the city. The new facility will be operational in December 2019 and will be able to handle as many as 12 million passengers a year compared with the current airfield’s capacity of 2.7 million, the civil aviation agency said.

Yongnam rose 6.4 percent to 20 Singapore cents as of 1:40 p.m. in Singapore today. JGC gained 2.6 percent to 2,719 in Tokyo trading.

To contact the reporter on this story: Kyaw Thu in Bangkok at kthu1@bloomberg.net To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net Tony Jordan.

Tags: myanmar
Photo Credit: The top of the Shwedagon Paya in Yangon, Myanmar. Mauro Gambini / Flickr