Ethiopian Airlines (ET, Addis Ababa International) has delayed selecting contractors for its planned USD12.5 billion Bishoftu International Airport from August 2026 to early January 2027 after bidders requested more time to prepare proposals and arrange financing for the multibillion-dollar project.

This was disclosed by CEO Mesfin Tasew at the airline's annual performance briefing in Addis Ababa, according to the Ethiopian newspaper The Reporter. Mesfin said prospective contractors had asked for additional time to finalise bids, negotiate with lenders, and engage subcontractors, but stressed that the revised timetable would not affect the project's overall implementation.

Shortlisted bidders for the construction of the airport comprise a mix of major international firms and joint ventures from China, Europe, the Middle East, Türkiye, India, and Russia.

Bishoftu, to be located about 45 kilometres southeast of Addis Ababa, is intended to relieve congestion at Addis Ababa International and support Ethiopian Airlines' long-term expansion plans. The first phase is expected to handle about 60 million passengers annually when completed by 2030, with ultimate capacity projected at 110 million passengers across four runways.

Ethiopian Airlines is funding 20-30% of the cost, with the rest to be financed by international lenders.

Mesfin said the airline needs more than USD9 billion in external financing for the project and is pursuing funding from multiple international lenders rather than a single institution. While expressions of interest total about USD8.5 billion, no financing agreements have yet been signed because lenders are still conducting due diligence, he added.

Mesfin said interest had come from the US International Development Finance Corporation, US Export-Import Bank, JPMorgan, and European, Middle Eastern, and Chinese financial institutions. The African Development Bank has pledged USD500 million for the project, subject to completing its appraisal process, and is leading efforts to raise the remaining financing.

Mesfin also said that Ethiopian Investment Holdings is establishing a special purpose company to oversee implementation of the airport project.

During the Africa Military Logistics Symposium in Addis Ababa last week, US deputy assistant commerce secretary for the Middle East and Africa, Mark Mitchell, said Washington was working to secure US participation in the project, linking this to additional Boeing aircraft for Ethiopian Airlines powered by GE Aerospace engines.

Separately, the airline said it is continuing upgrades at existing Addis Ababa International, including apron rehabilitation and runway improvements that will allow Category III operations in low-visibility conditions.

Mesfin said Ethiopian Airlines expects revenue of USD10 billion in the current fiscal year, and plans to carry 23 million passengers, add 17 aircraft, and launch four new international destinations. He also said the carrier expects to announce a freighter order within a week and finalise an order for 25 regional jets within the next couple of months.