SYDNEY, May 2 (Xinhua) -- Sydney Airport Group declined the Australian Federal Government's offer to build a second Sydney airport on Tuesday, claiming the "risks associated with the development" are to high.
Despite the refusal, Prime Minister Malcolm Turnbull has confirmed the Western Sydney Airport will go ahead and that details will be announced on May 9 during the national budget address.
Far from an impromptu venture, plans of building a second airport in Sydney have been discussed at state and federal government levels for decades.
It's believed the first suggestion came in a parliamentary paper as early as 1940.
Reported to be at a cost of around 5 billion Australian dollars (3.77 billion U.S. dollars), the Sydney Airport Group explained reasoning for refusal via the Australian Securities Exchange Website.
"Despite the opportunities that Western Sydney Airport will present, the risks associated with the development and operation are considerable and endure for many decades, without commensurate returns for our investors," Sydney Airport Group chief executive officer Kerrie Mather said in a statement.
At the moment it's unclear how the project will proceed, however it appears the federal government will provide the funding with taxpayers footing the bill.
But Federal Opposition Infrastructure Minister Anthony Albanese told reporters on Tuesday the current outcome could be a positive for the Commonwealth.
"There are enormous opportunities around this airport," Albanese said.
"When we're talking about the Western Sydney Airport, we're talking about a population of some 2.2 million people right now and that will grow to four million."
"There's no doubt that private finance will be very interested and will be falling over each other to gain the lease of this airport when that's done."
Construction is estimated to begin in 2018, creating 9,000 new jobs for Western Sydney.
When the airport is fully operational in 2026, it's expected to receive 10 million passengers per year.
