AfDB to lead Sh1 trillion funding drive for Ethiopia’s new airport
Set for completion in 2029, the airport will be the largest in Africa and is designed to handle up to 100 million passengers annually.
The African Development Bank (AfDB) has been chosen to lead efforts to raise $7.8 billion (Sh1 trillion) for the construction of a new airport in Ethiopia, the bank announced.
Set for completion in 2029, the airport will be the largest in Africa and is designed to handle up to 100 million passengers annually.
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In a statement released late Thursday, the bank said, “The appointment of the African Development Bank as lead arranger reflects its catalytic role in advancing strategic infrastructure across the continent and its proven leadership in structuring complex transactions.”
The four-runway airport will be located near Bishoftu, approximately 45 kilometres southeast of Addis Ababa, the Ethiopian capital. State-owned Ethiopian Airlines has already signed an agreement for the airport's design.
Speaking during the presentation of Ethiopian Airlines' financial results on Tuesday, Chief Executive Officer Mesfin Tasew said the entire project will cost $10 billion (Sh1.292 trillion).
Ethiopian Airlines will contribute 20 per cent of the funding, with the remaining 80 per cent expected to come from creditors.
Last year, Mesfin Tasew highlighted that Bole Addis Ababa International Airport, currently the main hub for Africa’s largest airline, is nearing its capacity to serve 25 million passengers annually, underscoring the need for a new facility.
The African Development Bank confirmed that a formal signing ceremony involving its president and Ethiopia’s Prime Minister Abiy Ahmed will take place in Addis Ababa on Monday.
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