Ethiopia – Corporate Loan to Ethiopian Airlines


Project Summary

Approval Date 14 Dec 2016
Signature Date 24 Jan 2017
Sovereign / Non-Sovereign Non Sovereign
Sector Transport
DAC Sector Code 21012
Commitment U.A 90,310,881.93
Status Implementation

Project General Description

This project is a support operation for Ethiopian Airlines, which is currently implementing a major expansion plan aimed at strengthening its fleet through the purchase of new aircraft. This plan involves the purchase of 51 new aircraft (37 Boeing, 12 Airbus and 2 Bombardier). It is part of Ethiopia's Plan for Growth and Transformation II ("GTP II"). The project seeks the participation of the African Development Bank in a business loan to Ethiopian Airlines in order to support its expansion plan through the partial financing of the purchase of new aircraft. Ethiopian Airlines now operates a network of 94 destinations, including 52 in Africa, and contributes not only to its integration in the region, but also connects Africa to the rest of the world. Specifically, the Bank supports this program in the form of a corporate loan of US $ 159 million to partially finance the first phase of the expansion program, consisting of the acquisition of 8 Airbus 350-900. This corporate loan will enable Ethiopian Airlines to continue modernizing and expanding its fleet to achieve the goals set in the Vision 2025 strategy.

Project Objectives

The sectoral objective of the project is to expand and improve the quality of air transport services and the operational capacity of aviation services in Ethiopia. More specifically, the project aims to support the expansion and modernization of Ethiopian Airlines' fleet in order to integrate new traffic flows, while contributing to the implementation of the Ethiopian Airlines investment plan. The project will facilitate the acquisition of new commercial aircraft to increase the airline's capacity for long-haul flights to and from Africa, as outlined in its Investment Plan and Vision for 2025

Beneficiaries

The domestic and regional customers of the company (Ethiopian Airlines), the regional airlines, the Ethiopian government, service providers and air transportation employees will be the major beneficiaries of this project.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-ET-D00-005
Last Update 22 Nov 2020

Export

Contact Details

Email private-sector@afdb.org

Geographic Location

Country Ethiopia