Ethiopia’s Largest Airport Project Tilts Toward China After U.S. Contractors Miss Shortlist

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Chinese state-owned construction companies have emerged as the dominant contenders for Ethiopia’s landmark $12.5 billion Bishoftu International Airport, while no major independent U.S. contractor has secured a place on the main construction shortlist, highlighting Beijing’s growing influence in one of Africa’s most ambitious infrastructure projects.

The development comes as Washington seeks to expand its commercial presence in Ethiopia despite years of diplomatic tensions, particularly over the Grand Ethiopian Renaissance Dam and broader geopolitical competition across the continent.

Chinese Firms Dominate the Shortlist

Ethiopian Airlines completed the prequalification process for four major construction packages in April, attracting bids from companies across China, Europe, Türkiye, India, Russia and the Middle East.

Of the 33 shortlisted positions, Chinese firms secured 15, either independently or through joint ventures across 10 different consortiums.

Among the leading contenders are China Communications Construction Company, China Road and Bridge Corporation, China Civil Engineering Construction Corporation and Beijing Urban Construction Group.

The contracts cover the airport’s main terminal, airfield infrastructure, supporting facilities and transport connections.

By comparison, no major independent American contractor made the shortlist. The only U.S.-based company involved is Connecticut-headquartered Lane Construction Corporation, which appears through a joint venture led by its Italian parent company, Webuild, alongside Türkiye’s IC İçtaş.

Contract Awards Delayed Until 2027

Although contractor appointments were initially expected in August 2026, Ethiopian Airlines has postponed the final selection process until January 2027 after bidders requested additional time to prepare technical proposals and financing arrangements.

Group Chief Executive Mesfin Tasew said the revised timetable would not affect the airport’s planned completion schedule.

The delay gives competing firms additional time to strengthen their bids while allowing Ethiopian authorities to finalize financing arrangements for Africa’s largest aviation infrastructure project.

Washington Seeks a Broader Commercial Role

While American construction firms have largely missed out on the civil works, the United States is pursuing opportunities in aviation equipment and technology.

U.S. Deputy Assistant Secretary of Commerce for the Middle East and Africa Mark Mitchell said Washington has been actively working to secure meaningful participation for American companies.

Officials have identified Boeing and GE Aerospace as potential beneficiaries through aircraft sales, engines, maintenance services and aviation technology linked to Ethiopian Airlines’ long-term expansion plans.

The airline reinforced its relationship with Boeing earlier this year after agreeing to purchase six additional Boeing 787-9 aircraft, adding to 20 already on order.

More Than $9 Billion Still Needed

The airport’s financing remains one of its biggest challenges.

Ethiopian Airlines intends to finance roughly 30% of the $12.5 billion project internally, leaving more than $9 billion to be raised from external lenders.

According to Mesfin Tasew, financial institutions have already expressed interest amounting to approximately $8.5 billion, although no comprehensive financing agreement has yet been finalized.

The African Development Bank is serving as the project’s mandated lead arranger and has indicated it could provide up to $500 million while mobilizing additional funding from international partners.

Potential financiers also include the U.S. International Development Finance Corporation, the U.S. Export-Import Bank and JPMorgan Chase.

Meanwhile, Chinese financial institutions—including Bank of China, China Exim Bank, Industrial and Commercial Bank of China and China Development Bank—are also discussing possible financing packages. Ethiopian officials have previously disclosed that one China-based lender pledged $500 million toward the project.

Geopolitics Shapes Infrastructure Competition

The airport has increasingly become another arena for strategic competition between China and the United States in Africa.

Relations between Washington and Addis Ababa have remained strained in recent years, partly because of disagreements surrounding Ethiopia’s Grand Ethiopian Renaissance Dam and U.S. involvement in negotiations involving Egypt and Sudan.

Against that backdrop, Bishoftu International Airport offers Washington an opportunity to strengthen economic ties through aviation, finance and technology, even if Chinese firms dominate the construction phase.

Africa’s Largest Airport Project

Located south of Addis Ababa, Bishoftu International Airport is designed to relieve congestion at Bole International Airport, which currently handles around 25 million passengers annually and is expected to reach capacity within the next few years.

When the first phase opens in 2030, the new airport will accommodate approximately 60 million passengers each year.

At full development, annual capacity is expected to rise to 110 million passengers, alongside 3.73 million metric tonnes of cargo and parking space for roughly 270 aircraft.

The project is expected to become both Africa’s largest airport and one of the world’s busiest aviation hubs upon completion.

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