ALBANY, N.Y. — Work on a new $4 billion terminal at LaGuardia Airport is underway.

New York Gov. Andrew Cuomo and Delta Air Lines CEO Ed Bastian held a ground breaking ceremony for the project Tuesday.

Delta and its partners will pay $3.6 billion for the new facility, with the Port Authority of New York and New Jersey providing the remaining funding. The construction comes after the airline and the Port Authority agreed on a lease for the facility through 2050.

Cuomo says the project will generate significant jobs and, when completed, helped spur the entire regional economy.

The new terminal is a key part of Cuomo’s plans to modernize the aging airport.

The first gates at the new facility are expected to open next year.