Ethiopian Airlines to Pick Lead Contractor for Bishoftu Project in June

Jan 17 , 2026. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

Ethiopian Airlines Group (EAG) is pushing ahead with its vision for Bishoftu International Airport, a 12.5 billion dollar project designed to redefine Ethiopia’s place on the global aviation map. The Airport site, 40Km southeast of Addis Abeba, has entered the construction phase, marked by site clearing and groundwork conducted by a trio of contractors, including China Communications Construction Company and Allied Infrastructure Group.

The Ethiopian Airlines Group (EAG) expects to identify a principal contractor for its long-awaited Bishoftu International Airport between June and July this year, even as the 12.5 billion dollar project moves forward under a deliberately multi-firm construction approach involving four or five contractors.

According to Lemma Yadecha, the Group’s chief commercial officer, the final design phase is scheduled for completion by February 2026, with the formal process of short-listing a lead contractor to begin in March, followed by the issuance of public tenders.

“The company that is going to do the construction won't be one, for quality purposes,” Lemma told Fortune, signalling a clear departure from a single-contractor delivery model.

While domestic construction firms are being encouraged to participate, he acknowledged that capacity limitations and execution risks remain decisive constraints.

“We would want local companies to work on time,” he said. “Performance constraints continue to weigh on the selection process.”

Despite the absence of a principal contractor, preparatory construction works have already begun at the Bishoftu site, about 40Km southeast of Addis Abeba. The project formally entered its construction phase two weeks ago with a marking ceremony and the launch of initial groundwork, including site clearing and enabling works. These early activities are being undertaken by China Communications Construction Company, Beijing Urban Construction Group, and Allied Infrastructure Group, a consortium of contractors.

The Airport is being developed through a multi-lot framework, with construction divided into three main packages covering fencing, runways, and major structural works. The first operational phase is designed to handle up to 60 million passengers annually, with subsequent expansions expected to raise capacity to 110 million passengers, supported by four runways and parking facilities for up to 270 aircraft.

The planning and architectural foundations were laid in 2024, when Ethiopian Airlines contracted Dar Al-Handasah, also known as Sidara, as lead consultant and airport planner. Sidara is coordinating a network of specialised international firms, including BNP Associates, overseeing baggage handling systems; Spectrum, managing architectural lighting; Pascall + Watson, designing executive interiors; Portland Design, handling retail planning and analytics; Landrum & Brown, leading airfield and apron planning; and SPADA Ltd, overseeing airfield city planning.

Zaha Hadid Architects is serving as terminal planner and design architect, working through Sidara, with project leadership from Cristiano Ceccato de Sabata.

Prime Minister Abiy Ahmed (PhD) disclosed during the launch of the project that a new highway will feature six lanes, twice the width of the Adama Expressway, and incorporate green design elements. A 38Km railway, to be built by a domestic firm, will operate at speeds of at least 120Km an hour.

“We aren't only building projects," he said. "We're also building construction companies. We'll have a high share from highway construction.”

Signals of rail expansion appeared earlier when the Ethio-Djibouti Railway announced plans to construct 1.7Km of main track and 800 metres of side rail. This work, due to finish within six months, was revealed in October 2025, at the launch of railway construction for AMG Holdings. The 2.5Km line will connect Sheger Industrial Park to the Ethio-Djibouti Railway’s Endode Station.

For the core airport construction packages, however, Ethiopian Airlines remains cautious. Reliability concerns persist, particularly in relation to schedule discipline and large-scale project management. According to Lemma, the Group’s exposure to global construction cost volatility is limited because contracts are denominated in foreign currency.

“Since the quotations are made in dollars, there is a low chance of fluctuation,” he said. “Even if there is a variation, we are prepared for it.”

The Bishoftu Airport is conceived primarily as a high-volume transit hub, with roughly 80pc of passengers expected to transfer without leaving the terminal. To support this model, the terminal will include a 350-room airside hotel, extensive dining and entertainment areas, landscaped gardens, and internal courtyards designed to ease passenger movement. Each pier will incorporate distinct materials and colour palettes mirroring Ethiopia’s diversity, while a central spine inspired by the Great Rift Valley will link gates and amenities to reduce transfer times.

The site’s lower elevation, nearly 400 metres below Bole International Airport, and longer runways are expected to improve aircraft performance, allowing higher take-off weights, reduced fuel consumption, and longer non-stop international routes.

The project aligns with strong growth trends in African aviation. In November 2025, African airlines recorded an 11.2pc year-on-year increase in passenger demand, according to the International Air Transport Association (IATA), with load factors rising to 74.3pc. East Africa is projected to see air travel growth of more than 200pc over the next decade, positioning Ethiopia as a strategic hub between Africa, Asia, and the Middle East.

Globally, air travel demand grew by 5.7pc, capacity by 5.4pc, and load factors by 0.3 percentage points, reaching 83.7pc.

“November 2025 saw continued strong demand for air travel,” said Willie Walsh, IATA's director general. “The backlog of more than 17,000 aircraft orders that we reached in 2025 should be reduced in 2026.”

Aviation analyst Yonatan Menkir cautioned that the Airport’s scale and strategic importance demand rigorous execution. While noting that local contractors have successfully delivered smaller airports, he depicted Bishoftu as an opportunity to build long-term technical and managerial capacity through targeted subcontracting.

“Even the Dam and the Airline weren't built by local capacity at the beginning,” he said. “Capability grows over time.”

Yet, Yonatan stated that delivery discipline remains a central challenge.

PUBLISHED ON Jan 17,2026 [ VOL 26 , NO 1342]