Plans to build a second international airport in Sydney for AUD 5 billion have been revealed by the Australian government.

The new airport will be located at Badgerys Creek, 31 miles west of the city centre.

Prime minister Malcolm Turnbull said the government would take on the project after the operator of Sydney’s existing airport turned it down, citing financial risks.

It comes more than 70 years after the idea was first conceived, and follows promises from successive governments.

The current Sydney airport has become increasingly stretched amid increased demand in recent years.

Turnbull described the new airport as a “vitally important project” for both Sydney and the nation.

“The airport will be a major catalyst for jobs and economic growth in western Sydney, injecting more than A$1.9 billion into the economy during the construction phase alone,” he said.

“It is expected to deliver 9,000 new jobs to western Sydney by the early 2030s, and 60,000 in the long-term.”

The Sydney Airport Group declined its first option to build the airport, citing “risks” to investors including demand and growth potential and construction costs.

Details of the plan will be announced next week when the government unveils its annual budget, the BBC reported.