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 22,187,994.67
Status Implementation

Project General Description

This project consists of an assistance mission to Ethiopian Airlines, which is currently implementing a vast expansion plan aimed at strengthening its fleet through the purchase of new aircrafts. This plan consists of the purchase of 51 new aircrafts (37 Boeing, 12 Airbus and 2 Bombardier). It is part of the Growth and Transformation Plan II ("GTP II") of Ethiopia. The project seeks the participation of the African Development Bank for a business loan to Ethiopian Airlines to support its plan for expansion through the partial financing of new aircraft purchases. Ethiopian Airlines today operates a network of 94 destinations, including 52 in Africa, and contributes not only to its integration within the region, but also connect Africa to the rest of the world. More specifically, the Bank supports this program in the form of a corporate loan of 159 million dollars in order to ensure the partial financing of the first phase of the expansion program, consisting of the acquisition of 8 Airbus 350-900. This loan will allow Ethiopian Airlines to continue the modernization and expansion of its fleet to achieve the objectives set out in the strategy of its Vision 2025.

Project Objectives

The sectoral objective of the project is to expand and improve the quality of air transport services as well as the operational capacity of the aviation services in Ethiopia. More specifically, the project aims to support the expansion and modernization of the fleet of Ethiopian Airlines to integrate new flows of traffic, while contributing to the implementation of Ethiopian Airlines’ investment plan. The project will facilitate the acquisition of new commercial aircrafts in order to increase the airline capacity to ensure the long-haul flights to and from Africa, as outlined in its investment plan and its 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-D00-009
Last Update 21 Oct 2020

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Contact Details

Email private-sector@afdb.org

Geographic Location

Country Ethiopia