AFRICAN AVIATION: China and the US salivate over a slice of huge Ethiopian airport project
Ethiopia’s $12.5-billion Bishoftu International Airport is attracting firms and lenders from the two superpowers and other countries to one of Africa’s biggest aviation infrastructure projects.
China and the United States are eyeing a slice of Ethiopia's massive $12.5-billion Bishoftu International Airport project, one of Africa's biggest aviation infrastructure ventures. The US is wooing its aviation firms and technology at the project, while Chinese firms dominate the shortlist of companies to build it. Lenders from the US, China, Europe, the Middle East, and multilateral institutions are vying to finance the construction, expected to open in 2030.
The four-runway airport, located about 45km southeast of Addis Ababa, is designed to handle up to 110 million passengers annually, four times the capacity of Ethiopia's current main airport. Ethiopian Airlines, the country's largest carrier, has allocated $610-million for earthworks and plans to provide 30% of the project's cost. The airport will have space for 270 aircraft.
US Deputy Assistant Secretary of Commerce for the Middle East and Africa, Mark Mitchell, has been pushing for US participation in the project, citing potential opportunities for Boeing aircraft and GE Aerospace engines. Ethiopian Airlines has already agreed to purchase six more Boeing 787-9 Dreamliners, expanding its existing 20 aircraft orders.
US companies are also interested in areas beyond aircraft, including airport infrastructure, engineering, aviation systems, cargo logistics, energy, security, and smart-terminal technology.
China, however, appears to have a stronger position in the construction race. Ethiopian Airlines shortlisted 33 firms and consortiums for four major works packages, with 15 positions held by Chinese companies or Chinese-led groups. The US presence in the construction competition is smaller, with Lane Construction participating through joint ventures.
The project's financing is expected to come from a mix of sources, including the Ethiopian Development Bank, Asian Infrastructure Investment Bank, and Chinese banks. The African Development Bank is leading the effort to mobilize up to $8-billion in debt financing, with a potential $500-million commitment from the bank itself. Discussions with China Exim Bank and other Chinese financial institutions have also taken place to secure external funding.
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