GRAND ISLAND, Neb. (AP) — Federal authorities have awarded $9.8 million to the Central Nebraska Regional Airport to create a passenger terminal.

The Federal Aviation Administration awarded the grant for the $14.2 million terminal. The airport’s executive director made the announcement on Thursday.

Construction crews will break ground next month and the nearly 34,000-square-foot building is expected to be completed in 2016. The administration office and covered parking area will be demolished to make room for the terminal.

An airport board chairwoman says the terminal is the biggest project at the site since the airport’s construction. It will replace a 60-year-old terminal.