(Reuters) – Australia’s Melbourne Airport on Friday received a long-awaited approval to build a third runway, with the federal government setting out conditions to minimise the effects of noise from aircraft on surrounding communities.

The airport is expected to boost the economy in Victoria by A$6 billion ($4.04 billion) a year.

Catherine King, the country’s transport minister, said the new runway would allow the airport to cash in on rising demand in the city and provide better access to passengers.

“Throughout my consideration of this proposal, the needs of the local community have been front of mind,” King said.

The airport will also be required to include a provision for a legally enforceable commitment to restore the length of the existing east-west runway in a bid to increase opportunities for noise sharing.

It will additionally have to implement a new program for communities who would be most impacted by aircraft noise and conduct a health study into the effects of noise.

“These conditions, along with relevant environmental requirements, mean that we are balancing the growth of the airport with the needs of the communities on the ground,” the minister said.

Australia’s flagship carrier Qantas and Bain-Capital owned smaller rival Virgin Australia did not immediately respond to Reuters’ requests on how the move might affect their operations.

($1 = 1.4868 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Savio D’Souza and Sonia Cheema)