Bishoftu Airport USD 9bln Financing Delayed by Ethiopian Airlines

• Ethiopian Airlines has delayed the selection of contractors for its Bishoftu International Airport project until early January 2027.
• The delay is due to difficulties in securing USD 9 billion in financing for the project.
• Prospective bidders requested additional time to prepare proposals and secure financing, leading to the decision to push back the deadline.
• The project's financing requirements are a significant hurdle, with potential implications for the project's timeline and overall feasibility.

The airline's Group Chief Executive Officer Mesfin Tasew made this announcement during the annual performance briefing on Thursday.

Ethiopian Airlines has delayed the selection of contractors for its planned Bishoftu International Airport project. The airline had initially set August 2026 as the deadline, but has now pushed it back to early January 2027. This decision comes after prospective bidders requested additional time to prepare proposals and secure financing. According to sources, the delay is largely due to difficulties in securing USD 9 billion in financing for the project. The airline's Group Chief Executive Officer Mesfin Tasew made this announcement during the annual performance briefing on Thursday.

The Bishoftu International Airport project has been a major undertaking for Ethiopian Airlines, with significant investment and planning going into its development. However, the airline's decision to delay the selection of contractors highlights the complexities involved in securing financing for large-scale infrastructure projects. Lawyers advising clients on infrastructure projects in Ethiopia should be aware of potential delays and compliance exposures arising from financing issues, as seen with the Bishoftu Airport project. The USD 9 billion financing requirement is a significant hurdle, and the delay may have implications for the project's timeline and overall feasibility.

The Bishoftu International Airport project is a key development for Ethiopian Airlines, with potential to boost the country's aviation industry. However, the financing delays raise concerns about the project's viability and the airline's ability to meet its commitments. The delay may also have broader implications for Ethiopia's infrastructure development, highlighting the need for careful planning and management of large-scale projects. As the project moves forward, stakeholders will be closely watching developments, including the selection of contractors and the securing of financing.

Lawyers advising clients on infrastructure projects in ET should watch for potential delays and compliance exposures arising from financing issues, as seen with the Bishoftu Airport project.

Source: Original reporting via [Source]