The African Development Bank (AfDB) will take the lead in raising Ksh.1 trillion ($7.8 billion) for a massive new airport project in Ethiopia, which is expected to become the largest airport in Africa once completed by 2029.
In a statement released on Thursday, AfDB announced its appointment as the lead arranger for the ambitious infrastructure project, aimed at easing congestion at the existing Bole International Airport in Addis Ababa.
“The appointment of the African Development Bank as lead arranger reflects its key role in pushing forward major infrastructure projects across Africa, and its experience in handling large, complex financial deals,” the bank said.
The new four-runway airport will be built near the town of Bishoftu, about 45 kilometers southeast of Addis Ababa. Once completed, it will handle up to 100 million passengers annually, four times more than the capacity of the current Bole Airport.
The project is being spearheaded by Ethiopian Airlines, the continent’s largest carrier, which has already signed a design agreement for the new facility. Speaking earlier this week while presenting the airline’s financial results, CEO Mesfin Tasew said the total cost of the airport would be around $10 billion (Ksh.1.3 trillion).
Tasew revealed that Ethiopian Airlines will cover 20% of the funding, while the remaining amount will be sourced through loans and partnerships organized with the help of AfDB and other creditors.
“Bole Airport is almost at full capacity with 25 million passengers a year. We need a larger hub to support our growth and improve connectivity for Africa,” said Tasew.
The official signing ceremony for the project will take place in Addis Ababa on Monday, with Prime Minister Abiy Ahmed and AfDB President Dr. Akinwumi Adesina expected to attend.
This project marks a major step in Ethiopia’s goal to become a leading aviation and transport hub in Africa, and is in line with the African Union’s plans for enhanced regional integration and economic development through improved infrastructure.
