Ethiopian Airlines has allocated a substantial 30 billion birr to begin preparatory works on its ambitious new airport and aviation hub near Bishoftu, located roughly 60 kilometers southeast of Addis Ababa. The development spans 35 square kilometers and represents a major milestone in the airline’s long-term expansion strategy.

According to the Ministry of Finance, the initial funding will go toward land clearing, infrastructure groundwork, and the resettlement of local communities. Around 17 billion birr has been specifically reserved for compensating roughly 2,500 farming households currently living on the site, which has been divided into eight sections for development purposes.

The site preparation is projected to be finalized by September, with relocation of residents and demolition of existing structures already underway. Meanwhile, work on the master plan for the broader airport city is progressing, and funding mobilization efforts are being actively pursued.

The design and consultancy aspects of the project are being handled by Dar Al-Handasah Consultants, who signed an agreement with Ethiopian Airlines CEO Mesfin Tassew in August 2024. The engineering firm collaborates closely with the globally acclaimed Zaha Hadid Architects.

The entire airport complex is projected to cost approximately USD 7.8 billion. The African Development Bank (AfDB) is expected to play a key role in financing the project. While the exact size of the bank’s financial commitment remains undisclosed, Finance Minister Ahmed Shide and the airline’s leadership submitted a formal letter of intent to AfDB last month.

Currently, AfDB’s investment portfolio in Ethiopia totals around USD 1.2 billion. The Bishoftu airport project is anticipated to significantly boost that figure, positioning it as one of the bank’s flagship initiatives on the continent. AfDB President Akinwumi Adesina, speaking during a preliminary agreement signing in March, hailed the airport city as a model infrastructure endeavor for Africa.

Once completed, the new facility is expected to accommodate more than 100 million passengers annually by 2040—an enormous leap from the 17 million passengers currently passing through Addis Ababa’s Bole International Airport. Government officials see the project as a transformative force for Ethiopia’s aviation and tourism sectors, consolidating the country’s regional dominance in air transport.