The Bishoftu Airport Project continues to advance in Ethiopia following a major financing arrangement led by the African Development Bank. The $8 billion plus initiative aims to deliver a new greenfield international hub near Bishoftu, approximately 45 kilometres southeast of Addis Ababa. The development is expected to significantly expand Ethiopia’s aviation capacity and relieve pressure on Bole International Airport. It also positions the country as a long-term regional aviation gateway.
The project is being implemented under Ethiopian Airlines Group as the sponsor and strategic developer. In addition, AfDB serves as the mandated lead arranger responsible for coordinating global financing. The scheme remains one of Africa’s largest single aviation infrastructure undertakings. Consequently, it continues to attract international lenders, contractors, and advisory firms.
Project development is led by the Ethiopian Airlines Group in partnership with major global design and construction firms and is backed by key finance partners including the African Development Bank and Italy through its Ministry of Economy and Finance. Bishoftu Airport will feature modern passenger and cargo terminals, long‑haul runways capable of accommodating wide‑body aircraft, and integrated logistics facilities.
Bishoftu Airport is also positioned to relieve pressure on Addis Ababa Bole International Airport and support Ethiopia’s vision of becoming a pan‑African travel and trade hub. The airport is also expected to generate substantial investment, create thousands of jobs during construction and operations, and enhance connectivity across East Africa and beyond. Expected project execution is in the 2026–2029 timeframe with key contractors already mobilized.
Bishoftu Airport Project shows steady progress in 2026
Construction activities on the Bishoftu Airport Project have advanced into enabling works and early-stage infrastructure preparation in 2026. Earthworks and site clearing operations are ongoing across the designated development zone. Moreover, financial close activities for multiple work packages have continued under AfDB coordination.
Procurement processes for technical advisors, environmental consultants, and lenders’ due diligence roles have also progressed. For instance, AfDB issued multiple 2026 consultancy tenders covering financial modelling, insurance advisory, and environmental compliance. These activities indicate gradual transition from planning into structured execution phases.
Initial construction sequencing prioritises land preparation and transport connectivity corridors. These include road and rail integration links designed to support future terminal and runway construction. Therefore, the project remains in a phased development structure rather than full-scale vertical construction.
According to current projections, the first operational phase is still targeted for the late 2020s. However, timelines may adjust depending on financing mobilisation and contractor onboarding schedules. Overall, the project remains active but still in early delivery stages.
Bishoftu Airport Project strengthens Africa’s aviation expansion pipeline
The Bishoftu Airport Project forms part of a broader continental trend of large-scale airport investments. In Ethiopia, the development is designed to handle between 60 million and 110 million passengers annually at full build-out. Consequently, it is expected to become one of the largest airports in Africa upon completion.
The project also aligns with Ethiopia’s strategy to expand Ethiopian Airlines’ global hub dominance. In addition, it supports cargo growth and international transit traffic expansion across East Africa. Therefore, the airport is positioned as both an economic and logistics transformation asset.
Regional competition is also intensifying across the aviation sector. Notably, Kenya is advancing a major upgrade of Jomo Kenyatta International Airport, while other African states continue to modernize airport infrastructure. As a result, East Africa is emerging as a key aviation infrastructure hotspot.
This development is further reinforced by financing commitments from multilateral institutions. The African Development Bank continues to play a central role in structuring debt and mobilizing global lenders. Consequently, the project maintains strong institutional backing despite its complexity and scale.
The Bishoftu Airport Project is also linked to major transport integration plans. These include expressway and high-speed rail connections between Addis Ababa and the new airport site. Therefore, the development is designed as a fully integrated multimodal transport hub.
Contractors and Stakeholders Involved in Bishoftu International Airport Project
Ethiopian Airlines Group — Project Sponsor & Owner Operator
African Development Bank (AfDB) — Mandated Lead Arranger & Lender
Dar Al‑Handasah (DAR) — Lead Technical Consultant, Master Planner & Engineering Advisory
Zaha Hadid Architects (ZHA) — Terminal & Airport Design Architect
Pascall+Watson — Architectural & Interiors Consulting Partner
Landrum & Brown (Sidara sister firm) — Airport Planning & Airfield Design
Beijing Urban Construction Group (BUCG) — Enabling Works Contractor
China Communications Construction Company (CCCC) — Infrastructure/Earthworks Contractor
Allied Infrastructure Group — Specialized Logistics Contractor
KPMG — Financial Advisor & Structuring Partner
Clyde & Co — Legal Advisory Partner
African Development Bank DFI Partners (e.g., International Development Finance Corporation) — Financing Support
Ethiopia and AfDB Ink Landmark $8 Billion Deal for Bishoftu Airport, Africa’s Largest Airport Project
Reported August 12, 2025 – The African Development Bank has signed a financing mandate to lead the mobilisation of up to $8 billion in debt funding for Bishoftu Airport. Bishoftu Airport will also establish the continent’s largest aviation hub.
The agreement was formalised on Monday in Addis Ababa, with AfDB President Dr. Akinwumi Adesina, Finance Minister Ahmed Shide, and Ethiopian Airlines Chief Commercial Officer Lema Yadecha in attendance.
As per the deal that was signed, AfDB has been selected as the Mandated Lead Arranger. AfDB’s task will entail coordinating and securing financing for the 10 billion US dollars project.
Also read: Bishoftu International Airport, Africa’s Biggest Airport, Set to be Constructed in Ethiopia
Bishoftu Airport Project Factsheet
Location: The airport will be built in the Abusera area near Bishoftu
Cost: The total project cost is estimated at approximately $10 billion.
Phased development: The project will be implemented in phases.
- Phase 1: Initial capacity will be 60 million passengers annually.
- Full development: At full capacity, the airport is expected to handle 100-110 million passengers per year, making it the largest airport in Africa.
Funding:
- Ethiopian airlines: The airline will contribute 20% of the total cost. This is approximately $2 billion.
- External funding: The remaining funding is being sourced from development finance institutions and other lenders.
- Lead arranger: The African Development Bank has been appointed as the Mandated Lead Arranger to secure up to $8 billion in debt financing. Also, the AfDB has committed up to $500 million of its own funds, subject to board approval, to anchor the project.
Construction start: Construction is slated to begin in late 2025
Completion: The first phase is expected to be completed and operational by 2029.
Ethiopian Airlines Investment in the Project
Also, Ethiopian Airlines will invest approximately 2 billion US dollars from internal resources. On the other hand, AfDB has committed $500 million as an initial anchor investment. This funding from AfDB is still pending board approval and will lead efforts to mobilize the remaining financing required to complete the airport.
Also read: Ethiopian Airlines and AfDB Partner on $7.8B Africa’s Largest Bishoftu International Airport
Location
The airport project is located near Bishoftu in Abusera. This is about 40 kilometres southeast of Addis Ababa.
Furthermore, the airport will feature four parallel runways. Also, it will contain advanced passenger and cargo terminals, an integrated “Airport City” with hotels, business parks, and leisure facilities.
Construction Start Date
The construction of the airport project will commence in October 2025. The first phase of the airport project will cost $6 billion US dollars. This phase will be completed by 2029. Additionally, the first phase will provide capacity for 60 million passengers annually. Eventually, it will be expanded to 110 million. This capacity is considered as more than four times the throughput of the existing Bole International Airport.
This ambitious airport project supports Ethiopia’s Vision 2035 and the African Union’s Agenda 2063. Ethiopia’s vision and AU’s agenda aim to position the country as a regional and global aviation hub. The airport project will also create thousands of jobs and catalyze growth in trade and tourism.
AfDB President Adesina praised Ethiopia’s steady economic growth and government leadership. Additionally, he called the airport a “flagship African project” that is expected to enhance both continental and international connectivity. Ethiopia’s finance minister Shide highlighted AfDB’s ongoing support for infrastructure development and regional integration.
Resettlement
Resettlement efforts for approximately 2,500 farming households are underway for September 2025, with compensation valued at 30 billion Birr.
Also read: Africa’s Biggest Airport, Bishfotu International Airport, to Break Ground in November
Project Team
Sponsor: Ethiopian Airlines Group
Owner: Government of Ethiopia
Lead Arranger: African Development Bank (AfDB)
Co-Financiers: International development finance institutions and global lenders consortium
Master Planner: Sidara (formerly Dar Al-Handasah)
Lead Architect: Zaha Hadid Architects
Airfield Design Consultant: Landrum & Brown
Technical Advisor: Pascall+Watson
Infrastructure Contractors:
- China Communications Construction Company (CCCC)
- Beijing Urban Construction Group (BUCG)
Financial Advisor: KPMG
Legal Advisor: Clyde & Co
Environmental & Social Advisors: AfDB-appointed consultancy consortium (2026 ongoing procurement)
Transport Integration Partners: Ethiopian Roads Administration and national rail authorities
Regulatory Authority: Ethiopian Civil Aviation Authority
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