Ethiopian Airlines and the African Development Bank (AfDB) have entered a partnership to co-develop Ethiopia’s Bishoftu International Airport project.

The letter of intent was signed on Friday, March 14, by Ethiopian Airlines Group CEO Mesfin Tasew and AfDB Vice President for Regional Development, Integration, and Business Delivery, Nnenna Nwabufo, reports addisinsight.net.

According to the Ministry of Finance, the AfDB’s current investment in Ethiopia exceeds US$1,2 billion (R21,8 billion), funding several key development sectors. AfDB has committed to providing additional financing for the development of the new Bishoftu Airport Hub, expected to cost US$7,8 billion (R141,6 billion).

The Bishoftu hub, which is about 40km southeast of Addis Ababa, is projected to have capacity for over 60 million passengers per year by 2040, effectively tripling Ethiopia’s aviation capacity, and alleviating congestion at Addis Ababa’s Bole International Airport.