BISHOFTU, Ethiopia: Ethiopia has kicked off construction of a vast new airport near its capital, a project officials say will transform the country into Africa's largest aviation hub and ease mounting pressure on existing infrastructure.

State-owned Ethiopian Airlines began work on the US$12.5 billion Bishoftu International Airport in the town of Bishoftu, about 28 miles southeast of Addis Ababa, on January 10. When completed in 2030, officials say it will be the biggest airport on the continent.

The airline has been awarded the contract to design the four-runway facility, which will have parking for 270 aircraft and the capacity to handle 110 million passengers annually.

"Bishoftu International Airport will be the largest aviation infrastructure project in Africa's history," Prime Minister Abiy Ahmed Ali said in a post on X.

That capacity is more than four times that of Ethiopia's current main airport, which Abiy said would hit its limits within the next two to three years, given present traffic growth.

Ethiopian Airlines' Infrastructure Development & Planning Director Abraham Tesfaye said the carrier would fund about 30 percent of the project, with lenders financing the remainder. He told reporters at the site that the airline has already earmarked $610 million for earthworks, which are expected to be completed within a year, while main contractors are scheduled to begin construction in August 2026.

The project was initially priced at $10 billion, before being revised higher.

Other creditors include the African Development Bank, which said in August it would lend $500 million and lead efforts to raise a further $8.7 billion.

"Lenders from the Middle East, Europe, China, and the U.S.A. have shown strong interest in financing the project," Abraham said.

Ethiopian Airlines, Africa's largest carrier, has been expanding rapidly. It added six new routes in the 2024-2025 financial year, with revenues also continuing to grow, bolstering confidence in its ability to support the ambitious airport development.