Ethiopia’s ambitious plan to build a $12.5 billion international airport is attracting major construction companies from around the world, turning the project into an increasingly important commercial contest involving Chinese, European, Middle Eastern, Turkish, Indian and Russian firms.
Ethiopian Airlines completed the prequalification process for four major construction packages in April, producing a shortlist of 33 positions across the project.
Chinese companies have emerged as the strongest presence on the shortlist, securing 15 positions either independently or through joint ventures involving 10 groups.
Among the Chinese companies shortlisted are major construction players including China Communications Construction Company, China Road and Bridge Corporation, China Civil Engineering Construction Corporation and Beijing Urban Construction Group.
The four packages cover the airport’s main terminal and associated facilities, airfield construction, supporting infrastructure and transport connections outside the airport site.
Contract decisions delayed until 2027
Despite the international competition, none of the major construction contracts has yet been awarded.
Ethiopian Airlines has moved the expected contractor-selection date from August 2026 to early January 2027 after bidders requested additional time to prepare their proposals and organise financing.
The airline’s Group Chief Executive, Mesfin Tasew, has said the delay is not expected to change the project’s overall timetable.
The extended bidding period could give additional companies more time to assemble financing arrangements and strengthen their proposals as the competition moves into its next stage.
Why the US wants a bigger role
While Chinese companies dominate the construction shortlist, Washington is seeking opportunities for American businesses elsewhere in the project.
US officials have indicated that American participation does not necessarily have to come through the main civil-construction contracts.
Instead, the United States is looking at opportunities linked to aircraft, engines, aviation technology and other equipment that will be required as Ethiopian Airlines expands its operations.
Boeing and GE Aerospace are among the American companies identified as potential beneficiaries.
Ethiopian Airlines already has a significant relationship with Boeing. In April, the airline agreed to purchase six additional Boeing 787-9 aircraft, adding to an existing order of 20 aircraft.
That means the airport project could create commercial opportunities for American companies even if US construction firms do not secure a major share of the main infrastructure contracts.
The financing challenge
Building an airport on this scale requires enormous amounts of capital.
Ethiopian Airlines plans to finance roughly 30% of the $12.5 billion project from its own balance sheet, leaving more than $9 billion to be raised externally.
Potential lenders have reportedly expressed interest totalling around $8.5 billion, although agreements covering most of that financing had not been finalised.
The African Development Bank is serving as mandated lead arranger and has indicated that it could provide $500 million, subject to the required appraisal process.
Other institutions showing interest include the US International Development Finance Corporation, US Export-Import Bank and JPMorgan Chase.
Chinese financial institutions are also involved in discussions.
Ethiopian Airlines and Ethiopia’s finance ministry have held talks with Bank of China, China Exim Bank, Industrial and Commercial Bank of China and China Development Bank.
The Chinese financing discussions add another dimension to the competition surrounding the project, as Beijing’s financial institutions could potentially play a significant role alongside Chinese construction companies.
More than an airport project
The commercial importance of Bishoftu extends beyond the construction contracts themselves.
The United States has been seeking stronger economic engagement with Ethiopia after years of complicated diplomatic relations, including disagreements surrounding the Grand Ethiopian Renaissance Dam and Ethiopia’s relations with Egypt and Sudan.
The airport could provide another avenue for commercial cooperation through aviation equipment, financing and technology.
For China, meanwhile, the project offers another opportunity for its construction and financial institutions to participate in one of Africa’s largest infrastructure developments.
That makes Bishoftu significant not only as an aviation project but also as a reflection of the increasingly competitive commercial environment surrounding major African infrastructure investments.
A new aviation hub for Ethiopia
Bishoftu International Airport is being developed south of Addis Ababa to relieve pressure on Addis Ababa Bole International Airport, which currently handles roughly 25 million passengers annually.
The first phase of the new airport is expected to accommodate 60 million passengers a year when it opens in 2030.
At full development, the airport is designed to handle as many as 110 million passengers annually, alongside approximately 3.73 million tonnes of cargo, with parking capacity for around 270 aircraft.
If those plans are realised, Bishoftu would rank among the world’s largest airports by passenger capacity.
At an estimated cost of $12.5 billion, it would also represent the most expensive aviation infrastructure project undertaken on the African continent.
The next phase of the competition
The immediate focus is now on the next stage of procurement, with final contractor selection expected in early 2027.
For Ethiopia, the challenge will be securing the right combination of construction expertise, financing and long-term commercial value.
For international companies, the project represents an opportunity to gain a position in one of Africa’s most ambitious aviation developments.
And for the US and China, the competition surrounding Bishoftu illustrates how major African infrastructure projects are increasingly becoming important arenas for global commercial influence.
The airport may ultimately transform Ethiopia’s aviation capacity, but the race to build and finance it is already revealing how much strategic and economic importance the project carries.
