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The Ethiopian Airport Enterprise (EAE) has signed a 276 million Br contract with two local companies to complete the construction of passenger terminals at Semera and Hawassa Airports.

The Enterprise contracted two companies, Afro Tsion Construction and FE Construction Material Rental Production & General Contractor Plc, to finalize the projects in less than a year.


The signing between the CEO of the Enterprise, Tewodros Dawit, and the representatives of the two contracting companies, was held at the Enterprise’s premises near Bole International Airport, on February 3, 2017. FE Construction was awarded the contract for the Hawassa terminal at a cost of 126 million Br.

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The company was established in 2000 with 300,000 Br capital. This is the first time FE has worked with the Enterprise, although the company currently has projects with Dire Dawa and Bahir Dar Universities. It has more than 20 projects worth almost three billion Birr and has over 500 permanent employees.

The construction of the Hawassa Terminal was preceded by the completion of the runway. The Hawassa Airport started services four months ago; the runway cost was just over half a billion Birr. The airport has the capacity to serve three Boeing jets, including the Boeing 777, and was constructed by YOTEK Construction Plc.

“The terminal was supposed to be constructed with the runway,” said Tewodros. “However, it suffered delays because of a lack of external financing. We decided to use our own budget in the end.”

YOTEK has almost completed a five-kilometre stretch of the 25km asphalt road connecting the airport with the city of Hawassa under its agreement with the Enterprise. However, the construction on the remaining 20km, which will be contracted under the Hawassa City Administration, has still not been awarded.

The Hawassa Airport opened in the midst of the development of an industrial park in the city. The park serves global companies in the garment and apparel industry, such as the America-based Van Heusen (PVH) – owner of popular brands such as Tommy Hilfiger, Calvin Klein and Vanity Fair, Indian apparel maker Raymond Group and Arvind Ltd, as well as local companies.

Afro Tsion won the contract to build a passenger terminal at Semera Airport for 150 million Br. The project is expected to be completed in less than a year. It also won the contract for the runway. In August 2016 it was announced that most of the work of the airport had been completed. The Airport serves travelers going to and from Afar Regional State, and tourists to the Ertale volcanic site and the Danakil depression. Established in 1998 with a capital of 50,000 Br, the company is also constructing the runway for Jinka airport.

“We have already finalized the earth work and we are preparing to start asphalt work,” said Sisay Desta, CEO and founder of Afro Tsion Construction.

Each of the two terminals will have the capacity to serve up to 130 passengers at once.

Currently, the Enterprise is constructing five projects including Robe, Jinka, and Shire airports.

At the end of the timetable of the second edition of the Growth and Transformation Plan, the Enterprise has set a target to increase the number of airports in the country from 25 to 30.

Source: Fortune

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