By:Zawya

The Ethiopian Airlines Group is set to spend around 30 billion birr on preparing a massive 35 square kilometer plot near Bishoftu for its new operations hub and international airport, according to a new report from the Ministry of Finance.

The budget is earmarked for land clearing, resettlement expenses, and readying the site for the construction of the airport, which will be located about an hour’s drive away from the capital.

Previous statements from Group executives indicate that up to 17 billion birr will be used to compensate the estimated 2,500 farming households currently residing on the land, which has been categorized into eight lots.

It states the design of the airport city and resource mobilization efforts are underway, with the relocation of residents and demolition of structures on the plot expected to wrap up by September.

In August 2024, Group CEO Mesfin Tassew and representatives of Dar Al-Handasah, a specialized engineering firm, signed an agreement for the design and consultancy works associated with the carrier’s monumental project.

Dar Al-Handasah Consultants is a partner of world-renowned Zaha Hadid Architects.

The airport complex is expected to cost USD 7.8 billion, with the African Development Bank (AfDB) expected to act as a primary financier for the project. Finance Minister Ahmed Shide and Group executives submitted a letter of intent to AfDB last month.

How much the bank will be committing to the project has not been disclosed. However, its latest commitment is expected to grow its portfolio in Ethiopia, which stands at USD 1.2 billion across key sectors.

During the signing of a preliminary agreement in March, AfDB chief Akinwumi Adesina described the Bishoftu airport city as the “flagship African project”.

Group executives envision the new airport handling over 100 million passengers annually by 2040, more than four times the 17 million passengers passing through Bole International Airport at present.

The government hopes it will reboot Ethiopia’s tourism industry and reaffirm its dominance in aviation.