The Federal Aviation Administration on Monday said it would fund the design and construction of a second new control tower at O’Hare International Airport as part of an $8 billion runway expansion.

At a news conference in Chicago, U.S. Transportation Secretary Ray LaHood announced $3.4 million of federal support to finance the tower’s design. Officials did not put a price tag on the project. A tower built in 2008 as part of the first phase of the expansion program cost $42 million.

Chicago is planning an up to $1 billion new-money and refunding bond issue in the coming months to keep the program on track as negotiations with airlines on planned projects continue.

Citi is senior manager on the deal and Siebert Brandford Shank & Co. is co-senior manager. The city earlier this year wrapped up financing for the $3.3 billion first phase of the program.

The airport’s major airlines have resisted city pressure to fund the next phase of the O’Hare Modernization Program. They support runway expansion but want a $2.2 billion terminal project delayed. They also oppose the city’s planned prepayment of some existing debt.

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