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African Development Bank will lead efforts to raise $7.8 billion for new Ethiopian Airport

The African Development Bank said it will lead the charge in raising $7.8 billion to build a new Ethiopian airport.

The airport, when completed in 2029 will be the largest on the continent and have a capacity of 100 million passengers per year.

The African Development Bank said late Thursday that the appointment of its lead arranger was a reflection of its role as a catalyst in the advancement and development strategic infrastructure on the continent, and its demonstrated leadership in structuring complicated transactions. State-owned Ethiopian Airlines has signed an agreement to design the four-runway Airport near Bishoftu. This is located around 45 km south of Addis Ababa.

Mesfin Tasew, the Chief Executive Officer of Ethiopian Airlines, said that the total cost for the airport would be $10 billion. The airline will provide 20% of funding, and the remainder from creditors.

He had stated last year that Bole Addis Ababa International Airport (the current hub of Africa's largest airline) would soon be able to serve 25 million passengers annually.

The bank announced that a formal signing ceremony with Prime Minister Abiy Ahmad and the head of the bank will take place on Monday in Addis Ababa. (Reporting and editing by Barbara Lewis; Additional reporting in AddisAbaba by Dawit Endeshaw; Reporting by George Obulutsa)

(source: Reuters)