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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 as the initial mandated lead arranger, global coordinator and book runner to mobilize nearly US$8 billion of the US$10 billion needed for the mega project.
The regional bank plans to provide financing of US$500 million, subject to board approval.
The mandate letter was signed by Ethiopian Airlines Group chief commercial officer Lemma Yadecha and outgoing AfDB president Dr Akinwumi Adesina, in the presence of Ethiopia’s Minister of Finance, Ahmed Shide.
Located 40km south of Addis Ababa, 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.
“The African Development Bank is proud to partner with Ethiopia in its vision to expand the operational and fleet capacity of the Ethiopian Airlines,” Dr Adesina said, praising Ethiopia for putting “Africa at the top in global aviation.
“With its 75 years of operational history, Ethiopian airlines is Africa’s oldest and best airline. It is critical for regional economic integration, connecting capitals, people and markets, with its globally rated cargo facilities,” the AfDB Group chief said.
Ethiopian Airlines Group CEO Mesfin Tasew, who was represented at the signing ceremony by Chief Commercial Officer Yadecha said: “The signing of this mandate letter marks a decisive step toward realizing a world-class pan-African gateway that will boost intra-African trade, regional integration, tourism, and global connectivity.”
Groundworks are expected to begin late 2025, with Phase I expected to be completed by November 2029. The multi-billion-dollar 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.
Dr Adesina, making his last official visit to Ethiopia, praised the “visionary leadership” of Ethiopia’s Prime Minister, Abiy Ahmed, who he noted is transforming the country “every hour, every day, every week, at scale. Speed and scale are now the hallmarks of Ethiopia.”
He summed up the financing partnership between Ethiopian Airlines and the Bank as a fitting one between Africa’s largest airline—with an especially noteworthy record of supporting the global response to the Covid19 pandemic—and the continent’s biggest infrastructure financier, to deliver a “game changer” for African and global aviation.
“In the past 10 years under my presidency, the Bank has financed over $55 billion in infrastructure,” Adesina said, pledging to “do all we can to support Ethiopia to achieve its dream.”
He noted that the AfDB in 2016 extended a $160 million corporate loan to support the modernization and expansion of Ethiopian Airline’s fleet.
“I wish to assure you that the African Development Bank will deliver, so that this project can be delivered by Ethiopia for its people,” said Adesina.
The AfDB has a track record of responsibly structuring and mobilizing financing from commercial banks, development finance institutions, and institutional investors for structured projects across the continent.
It supports several transformative infrastructure projects as a mandated lead arranger, including the Aysha Wind Power Project in Ethiopia and the Tanzania-Burundi-DR Congo Standard Gauge Railway Project.
The Bishoftu International Airport will serve international passenger and cargo traffic, complementing Bole International Airport, which will retain Ethiopian’s domestic operations.
Ethiopian Airlines hub-and-spoke network, with subregional hubs, is driving connectivity across Africa and with the rest of the world. With the planned airport, the speed, frequency and scale of connections for people, goods, and services is set to increase significantly.
The expansion is also in line with one of the African Development Bank’s High 5 priorities, which is to Integrate Africa by breaking down barriers, building cross-border links, and enabling African economies to trade, travel, and thrive together in a globally competitive environment.
Source – African Development Bank Group (AfDB)
