Ethiopian Airlines Group has selected KPMG as financial adviser for its Bishoftu International Airport project. This project is a multi‑billion‑dollar initiative that seeks to create one of Africa’s largest aviation hubs.

The Bishoftu International Airport is located approximately forty kilometres southeast of Addis Ababa. Moreover, the airport is designed to handle up to 110 million passengers annually. Additionally, this is more than four times the airline’s current capacity. Also, it can accommodate extensive cargo operations across multiple runways.

About KPMG

KPMG International Limited which is a British multinational professional services network is expected to work alongside the African Development Bank, serving as mandated lead arranger. On the other hand, Dar Al‑Handasah Consultants will acting as technical adviser. Furthermore, the airline stated that a legal adviser is expected to be appointed shortly to complete the advisory team.

Additionally, the network is part of the world’s “Big Four” accounting and advisory firms. Other include Deloitte, PricewaterhouseCoopers and Ernst & Young. Furthermore, KPMG provides audit, tax, advisory, and financial consulting services to governments, corporations, and institutions across sectors.

Financing Structure of the Project

The airport project’s financing structure is planned as a ring‑fenced, limited‑recourse arrangement. The revenues will be channelled into a dedicated offshore account governed by a lender-approved cashflow waterfall. Additionally, officials said the use of blended finance will channel concessional capital to reduce risk for private investors. On the other hand, guarantees from the AfDB and other multilateral lenders are expected to ease borrowing costs.

The debt-to-equity ratio is expected to be at 70 to 30. Ethiopian Airlines revealed that financing mobilisation has already commenced. Currently, 59 financial institutions have already been engaged and 42 have signed non‑disclosure agreements. Also, 12 have already submitted letters of interest. In the previous year, Finance Minister Ahmed Shide announced that $4.8 billion had been pledged towards the airport project.

Other Projects Linked to the Airport Project

Additionally, the project includes an offsite rail link connecting Bole International Airport and Bishoftu Mega‑Airport. This rail link is expected to cost $954 million.

Also, other than the infrastructure, the airport development entauls a resettlement and livelihood restoration programme. The households that will be affected are being organised into cooperatives to participate in new businesses. This programme is expected to cost $350 million. Additionally, the land acquisition and resettlement costs to date have accumulated to approximately $741 million.

Bishoftu International Airport to be Constructed in Phases

Moreover, Bishoftu International Airport construction is being executed in phases. The lump-sum turnkey (LSTK) component is valued at $8 billion, contributing to a total project estimate of $12.5 billion.

Timeline

Additionally, the early works that were awarded to three contractors for $620 million are expected to be completed by December 2026.

Dar Al‑Handasah Consultants has already submitted a comprehensive package including the master plan, financial feasibility report, environmental and social assessments, geotechnical investigations, concept designs for terminal, airside and landside infrastructure, cargo and MRO facilities, transport links to Bole International Airport, fuel farm, utilities, cost estimates, and packaging structure. Furthermore, a consortium of international firms, including Zaha Hadid Architects, is contributing to terminal and infrastructure design.

Furthermore, Ethiopian Airlines revealed that the airport is intended to strengthen Ethiopia’s position as a continental aviation hub. It will integrate passenger, cargo, and logistics operations. Also, at the same time, it will while address social and economic participation for affected communities.

Challenges Facing Bole International Airport

Also, Ethiopian Airlines said Bole International Airport, which currently handles around 25 million passengers annually, is facing the challenge of congestion due to the growth of Africa’s largest carrier. Lastly, once Bishoftu Mega‑Airport commences operations, Ethiopian Airlines plans to restrict Bole International to domestic flights. This will free capacity for the new hub to manage international operations.

Kenya and Nigeria Follow Ethiopia’s Footsteps in Gearing Up Airport Infrastructure

Furthermore, Kenya and Nigeria are among the African countries that seek to follow Ethiopia’s footsteps in gearing up airport infrastructure. Recently, Kenya unveiled plans to upgrade its largest airport, the Jomo Kenyatta International Airport. Similarly, Nigeria also revealed unveiled a $500 million plan of upgrading the Murtala Muhammed International Airport.

Bishoftu International Airport Project Factsheet

Project name: Bishoftu International Airport (BIA)

Location: Near Bishoftu (Abusera), Oromia Region, Ethiopia.

Developer/Operator: Ethiopian Airlines Group (ETG).

Primary Architect: Zaha Hadid Architects (UK).

Technical/Lead Consultants: Dar Al-Handasah (Technical), KPMG (Financial)

Status: Under Construction (Groundbreaking held January 10, 2026).

Phase 1 Completion Target: 2030.

Early Works Completion: Expected by December 2026 (Earthworks and site preparation).

Estimated Total Cost: $12.5 Billion

Passenger Capacity: 110 million

Bishoftu International Airport Project Team

Terminal Planner & Design Architect: Zaha Hadid Architects (ZHA)

Structural & Geotechnical: Dar Al-Handasah

Airfield & Apron Planning: Landrum & Brown (Sidara)

Baggage Handling Systems: BNP Associates, Inc.

Façade Engineering: Maffeis Engineering

MEP & Fire Engineering: Dar Al-Handasah

ICT & Security Planning: Dar Al-Handasah

Sustainability (LEED): Dar Al-Handasah

Architectural Lighting: Spectrum

Acoustics: Dar Al-Handasah

Enabling Works & Site Clearing: Beijing Urban Construction Group (BUCG)

Infrastructure & Earthworks: China Communications Construction Company (CCCC)

Specialized Logistics: Allied Infrastructure Group (Consortium member)

Off-site Connectivity (Rail): Awarded to a Domestic Ethiopian Firm