The government of Chad said it had signed a $1 billion accord with China CAMC Engineering Co for the construction of an international airport about 40 km (25 miles) from the Central African country's capital.

The deal is the second infrastructure project in as many months signed between the government of Chad and a Chinese firm following the $7.5 billion agreement with China's CCECC engineering company to build 1,344 km of railway in March.

"The project which would be funded by a loan to the government of Chad from Chinese government will help Chad, because of its geographic position, to become an African hub for flights to the Middle East and Asia," Chad's infrastructure minister Adoum Younousmi told journalists.

The construction phase will begin later this year and will include a highway from the capital of the petroleum-producing state, to the airport, the minister said.

The project is expected to be completed by 2015. (Reuters)