News Bishoftu Airport Bid Selection Delayed as Ethiopian Airlines Awaits USD 9bln Financing
By Sara Solomon
August 1, 2026
US shows interest in financing the project
Ethiopian Airlines has postponed the selection of contractors for its planned Bishoftu International Airport from August 2026 to early January 2027 after prospective bidders requested additional time to prepare proposals and secure financing.
Speaking during the airline’s annual performance briefing on Thursday, Group Chief Executive Officer Mesfin Tasew said the adjustment followed requests from construction companies seeking more time to finalize bids, negotiate with lenders and engage subcontractors.
“The change in schedule will not affect the overall implementation of the project,” Mesfin said.
The update marks the latest development in Ethiopia’s largest aviation infrastructure project, which is intended to ease capacity constraints at Addis Ababa Bole International Airport and support Ethiopian Airlines’ long-term expansion strategy.
The African Development Bank (AfDB) has pledged USD 500 million to the Bishoftu project and is leading efforts to raise USD 8.7 billion.
ET, Boeing, and the Bishoftu Airport project were also among the points of discussions during the Africa Military Logistics Symposium this week held in Addis Ababa, bringing together US and Ethiopian officials for a five-day conference, alongside participants from 40 countries, AFRICOM and dozens of global corporations..
Mark Mitchell, US deputy assistant secretary of commerce for the Middle East and Africa, said Washington was “closely engaged in pushing to secure US participation” in the Bishoftu project financing.
He did not specify what role US companies could play in the project, but said it could lead to “more Boeing aircraft powered by GE Aerospace engines.”
Ethiopian Airlines in April agreed to buy six additional Boeing 787-9 Dreamliners, on top of 20 jets already ordered. The carrier’s CEO has previously stated that US financial institutions had “expressed interest” in participating in the project.
Mitchell also said the Commerce Department was seeking closer ties with Ethiopia’s Artificial Intelligence Institute as part of a US push to promote exports of its AI technology.
The Bishoftu International Airport, located about 45 kilometers southeast of Addis Ababa, officially broke ground in January 2026 and stands to become one of Africa’s largest aviation hubs upon completion in 2030. The first phase is expected to accommodate around 60 million passengers annually, with ultimate capacity projected to reach about 110 million passengers across four runways.
Mesfin said Ethiopian Airlines requires over USD nine billion in external financing for the airport project, with funding expected to come from multiple international lenders rather than a single institution.
According to him, the project’s feasibility study has already been completed and shared with technical advisers and prospective financiers, many of whom have begun conducting their own due diligence.
He said financing institutions are expected to complete their internal assessments by March 2027. While discussions with financiers have generated interest amounting to USD 8.5 billion, Mesfin stressed that no loan agreements have yet been signed.
“There is no signed financing yet because every lender must complete its own evaluation,” he said.
AfDB, which is coordinating the financing process, has indicated its intention to provide USD 500 million, subject to completion of its appraisal procedures, he added. Mesfin also said interest has come from the US International Development Finance Corporation (DFC), Exim Bank, JPMorgan, European and Middle Eastern financial institutions, as well as Chinese lenders.
Mesfin also disclosed that Ethiopian Investment Holdings (EIH) is preparing to establish a Special Purpose Company (SPC) to oversee implementation of the airport project. He said EIH has already approved the framework and registration of the entity will begin shortly.
The airport update comes as Ethiopian Airlines continues upgrading existing infrastructure at Bole International Airport. Mesfin said rehabilitation of the airport’s aging apron is underway, while work on the main runway—which has been temporarily suspended during the rainy season—will resume in October. Once completed, the runway will achieve Category III capability, enabling aircraft to land safely in very low visibility conditions.
Beyond the airport project, Mesfin revealed that Ethiopian Airlines has yet to recover funds trapped in Eritrea, saying deteriorating political relations between Ethiopia and Eritrea have stalled efforts to access the money.
“The relationship between Ethiopia and Eritrea is currently not healthy, and because of that there has been no progress,” he said.
According to Mesfin, Ethiopian Airlines had previously taken the matter to court, but the legal process could not proceed after what he described as a political decision. He said the airline expects to recover the money only when bilateral relations improve, adding that the funds remain held in an Eritrean bank.
Mesfin did not disclose the amount involved.
The CEO also outlined efforts to diversify the airline’s revenue streams beyond passenger and cargo operations.
He said Ethiopian Airlines’ aerospace manufacturing division produced aircraft components for 68 Boeing aircraft during the fiscal year, generating USD 6.2 million in export earnings. To expand the business, the airline has completed construction of a larger aerospace manufacturing facility in the Qilinto area, which is expected to begin operations soon.
The new facility builds on Ethiopian Airlines’ partnership with Boeing to manufacture aircraft components in Ethiopia as part of the carrier’s strategy to develop an aerospace manufacturing industry alongside its maintenance, repair and overhaul operations.
Mesfin also warned that environmental compliance costs are becoming an increasing financial burden for African airlines.
According to him, Ethiopian Airlines currently pays about USD six million annually under the European Union’s carbon emissions regime to offset emissions from its operations. He added that similar carbon-related charges are also being imposed by countries including Djibouti and Gabon, which he argued are not aligned with international aviation rules.
He said the airline is attempting to mitigate those costs by introducing newer, more fuel-efficient aircraft and implementing operational measures that reduce fuel burn, noting that carbon emissions are directly linked to fuel consumption.
The warning comes as airlines worldwide face rising costs associated with carbon pricing and emissions regulations, particularly on flights serving European destinations.
Mesfin also cautioned that geopolitical developments continue to threaten profitability.
He said jet fuel prices have remained above USD 90 per barrel because of the ongoing Gulf conflict, warning that sustained high fuel prices could significantly reduce profits despite continued revenue growth.
Despite those challenges, Ethiopian Airlines plans an ambitious expansion during the current fiscal year, targeting USD 10 billion in revenue, 23 million passengers, the addition of 17 aircraft, and the launch of four more international destinations after beginning services to Lyon and Mauritius earlier this month.
The airline also expects to announce an order for new cargo aircraft within a week and finalize negotiations for 25 regional jets within the next one to two months, according to Mesfin.