AfDB to lead $7.8bn funding drive for Ethiopia’s new airport
The African Development Bank (AfDB) will lead efforts to raise $7.8bn for the construction of a new airport in Ethiopia, the bank announced. The facility is planned to become Africa’s largest airport upon completion in 2029, with the capacity to handle 100 million passengers annually.
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In a statement, the AfDB said its role as lead arranger “reflects its catalytic role in advancing strategic infrastructure across the continent and its proven leadership in structuring complex transactions.”
Airport design and funding
Ethiopian Airlines, the state-owned carrier, signed an agreement for the design of the four-runway airport near Bishoftu, approximately 45 km southeast of Addis Ababa.
CEO Mesfin Tasew revealed the project’s total cost at $10bn, with the airline providing 20% of the funding and the remaining amount to come from creditors.
Capacity pressures at current hub
Last year, Tasew warned that Bole Addis Ababa International Airport, Ethiopia’s current main hub and Africa’s busiest airport, would soon reach its 25 million passengers per year capacity.
About the author
Reporting by George Obulutsa; Additional reporting by Dawit Endeshaw in Addis Ababa; editing by Barbara Lewis.