Source: The Reporter
17 billion birr allocated for farmer resettlement
The Ethiopian Airlines Group is searching for an estimated USD six billion in financing for the first phase of construction of an ambitious new operations hub and international airport in the Oromia region.
CEO Mesfin Tassew and representatives of Dar Al-Handasah, a specialized engineering firm, signed an agreement for the design and consultancy works for the flag carrier’s monumental project on August 9, 2024, at the Ethiopian Skylight Hotel.
Hailing from Beirut, Lebanon, Dar has previously completed a number of projects for Ethiopian Airlines, including designs for the Skylight Hotel and several terminals as well as a recently finalized e-commerce center for the carrier.
The massive project will lie on a 35 square kilometer plot near Obasirra town, in the vicinity of Bishoftu, and is slated for completion within five years. Mesfin refrained from disclosing how much Dar is being paid to finalize the design by next year, but said the Group is looking for a financier to extend an estimated USD six billion in financing for the ‘Mega Airport City’ project.
“The cost of the entire project will be determined by the detailed design Dar is going to hand over,” said the CEO.
The USD six billion estimate covers only the first phase of construction.
“We are looking for a loan to finance it. We have some parties that have shown interest, but nothing has gone further as of now,” said Mesfin.
He says he is confident the Group will be able to source the financing it seeks. Mesfin disclosed Dar was selected to carry out the design following an international restricted bid process, which saw the involvement of 16 firms. .
“The Group’s time and delivery requirements were very aggressive. We have tailored and re-tailored the schedules to successfully respond,” said Tariq Al-Qany, director for operations in Ethiopia, Uganda, and the Democratic Republic of Congo at Dar.
The new airport, which is planned to replace Bole International as Ethiopian’s primary hub, will include space to hold up to 270 aircraft and feature an express railway, a highway connecting it to Addis Ababa, and four parallel runways, according to the Group’s plans.
While Dar’s design will comprise these and all additional infrastructure like aircraft maintenance facilities, and cargo and catering facilities, the first phase of construction will only include two of the runways on the blueprint.
The Group’s executives expect the completion of the first phase to raise the airline’s passenger capacity by 60 million annually, more than double the 25 million at Bole International. The current Ethiopian Airlines hub reportedly saw 17.1 million passengers pass through during the just-ended fiscal year.
Dar is also expected to assist the Group in its contractor selection process. Al-Qany says the firm’s vast experience in aviation construction and its wide network of clients ensures it is up to the task.
The mammoth project is also contingent on Ethiopian Airlines’ ability to resettle up to 2,500 farmers currently residing on the plot in Obosirraa and its environs. Mesfin told The Reporter the Group has received a 740 hectare plot from the Oromia regional administration for this purpose, setting aside a 17 billion birr budget for resettlement and development works.
“We’ve awarded the design work to a local company named K2L,” said Mesfin.
The company is expected to complete its work by December, 2025. This will be followed by the contractor selection process, the construction of housing and other basic facilities, and the development of unspecified job opportunities for the relocated residents. The process is set to wrap up by the end of 2026.
“The construction of the airport city depends on the resettlement of the farmers. It will commence as soon as they move,” Mesfin told The Reporter.
The Airport city project has been in the pipeline for years now. However, in previous reports, former CEO of ET Tewolde Gebremariam, stated the project will cost USD5 billion and will have capacity to accommodate up to 100 million passengers per year.
THE AUTHOR: Nardos Yoseph
