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Airports

Ethiopia Unveils Ambitious Plans for New International Airport to Rival Global Giants

Strategic Insights

— 2 min read

Ethiopia has taken a monumental step towards realizing its vision of building a world-class international airport that will rival some of the world's biggest, with a monumental signing ceremony marking the African Development Bank's role as the initial mandated lead arranger, global coordinator, and book runner to mobilize nearly $8 billion of the $10 billion needed for the mega project. The new greenfield Bishoftu International Airport (BIA) will have an initial capacity of 60 million passengers, eventually expanding to 110 million, and transport 3.73 million tons of cargo annually.

Key Takeaways:

  • The African Development Bank is providing financing of $500 million, subject to Board approval, for the mega project.
  • The new airport will be located 40 kilometers south of Addis Ababa and will serve international passenger and cargo traffic, complementing Bole International Airport, which will retain Ethiopian's domestic operations.
  • The airport will have an airport city with facilities such as shopping malls, hotels, recreation areas, as well as direct rail and expressway links to Addis Ababa.
  • Groundworks are expected to begin late 2025, with Phase I expected to be completed by November 2029.
  • The project will include an airport city with facilities such as shopping malls, hotels, recreation areas, as well as direct rail and expressway links to Addis Ababa.
  • Ethiopian Airlines Group and the African Development Bank have a track record of responsibly structuring and mobilizing financing for structured projects across the continent.
  • The Bank has a track record of financing over $55 billion in infrastructure, including the Aysha Wind Power Project in Ethiopia and the Tanzania-Burundi-DR Congo Standard Gauge Railway Project.
  • The airport will serve as a game-changer for African and global aviation, complementing the expansion of Ethiopian Airline's fleet and its hub-and-spoke network.
  • The airport will reduce travel times and increase connectivity for people, goods, and services across Africa and the world.

Statistics:

  • The new airport will have an initial capacity of 60 million passengers, eventually expanding to 110 million.
  • The airport will transport 3.73 million tons of cargo annually.
  • Ethiopian Airlines Group reported record revenues of $7.6 billion in the fiscal year ending 30 June 2025, reflecting an 8% year-on-year growth.
  • The company has allocated a total of $350 million for livelihood restoration and resettlement of communities that will be affected by the construction.
  • The African Development Bank has a track record of financing over $55 billion in infrastructure.
  • The airport will create jobs and stimulate economic growth, contributing to the economic development and social progress of Ethiopia and the African region.

Sources:

  • APO -- Report: Ethiopia's ambition to build a new international airport that will rival some of the world's biggest, took off on Monday with a monumental signing ceremony marking the African Development Bank's role (www.AfDB.org) as the initial mandated lead arranger, global coordinator and book runner to mobilize nearly $8 billion of the $10 billion needed for the mega project.
  • The African Development Bank (www.AfDB.org)
  • Ethiopian Airlines Group (https://apo-opa.co/3UtVYBL)

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