The federal government announced Thursday it will invest $28 million in a new Thompson Regional Airport.

The government announced in a release that the investment will address the impacts of melting permafrost due to climate change in the northern community.

The airport’s terminal foundation has been damaged in recent years with visible signs of sinkage.

"We’re extremely excited that Ottawa recognizes Thompson for its essential role in northern transportation," said Thompson’s mayor Colleen Smook. "A new airport terminal will strengthen our networks, provide new opportunities for services, and ensure that Thompson continues to live up to its role as the hub of the north."

The project involves building a new 45,000 square foot terminal west of the existing building.

The new terminal will include three gates, security screenings, a baggage carousel, and 10 check-in counters.

The project will also include the construction of new taxiways and aircraft parking for five planes; a new access road, a parking lot with short and long-term stalls, and a water treatment plant.

The government said it hopes the facility will increase the community’s resilience to climate change.

The airport is Manitoba’s third busiest and provides hundreds of jobs in the community.

The government of Canada is contributing to the project through its disaster mitigation and adaptation fund.