The African Development Bank (AfDB) has announced plans to partner with Ethiopian Airlines for the construction of a four-runway airport near the town of Bishoftu, around 45 km (28 miles) southeast of the capital Addis Ababa, worth $10 billion.
Ethiopian Airlines is expected to raise 20% of the required funding, while the AfDB would take the lead in helping to raise the remaining $7.8 billion for the new airport.
In a statement on Thursday, AfDB 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.”
Last year, Ethiopian Airlines Chief Executive Officer Mesfin Tasew had said Bole Addis Ababa International Airport, the current main hub for Africa’s biggest airline, would soon reach its capacity of serving 25 million passengers per year.
The new airport when completed in 2029, will be the Africa’s largest with the capacity to handle 100 million passengers yearly.
