The resettlement of the residents of Abusera, the site of the Ethiopian Airlines Group’s new mega airport project, is estimated to cost upwards of USD 350 million, according to documents obtained by The Reporter.
The money will go towards resettlement packages for more than 2,000 farming households, and reportedly includes housing, mixed-use buildings, agro-processing facilities, and irrigation schemes.
The Group is looking to build a replacement for Addis Ababa’s Bole International Airport, which is quickly nearing its passenger capacity, 40 kilometers south of the capital, near the town of Bishoftu.
The project is forecast to consume close to USD 10 billion in total.
The African Development Bank (AfDB) has signed on to lead the charge to mobilize the nearly USD eight billion in credit required to see through the massive undertaking. Earlier this month, the ‘Initial Mandated Lead Arranger’ inked an agreement with the Group that will see it extend a loan of USD 500 million in addition to shouldering the responsibility to secure the remaining funding.
Close to USD two billion is expected to come from the state and the state-owned Ethiopian Airlines Group.
Group executives hope to see ideal conditions at the new lower-altitude location reduce the carrier’s fuel consumption by up to 15 percent. The airport is also expected to contribute to the continued growth of Ethiopia’s impressive cargo division with a capacity to accommodate 3.7 million and space for 270 aircraft.
Ethiopian Airlines reports carrying 15.2 million international and 3.9 million domestic passengers in the just-concluded financial year, up 11 percent from 2023/24. The Group generated USD 7.57 billion from its operations, according to a report released this month.
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