March 12, 2011 -- Ethiopian Airlines is establishing a joint venture company with Hainan Air of China and China Africa Development Fund (CADF) to build five-star hotel near the Addis Ababa Bole International Airport, according to the Reporter.
Tewolde Gebremariam, CEO of Ethiopian, said that the construction of the hotel was delayed due to issues related to land. “There were certain issues that need to be dealt with in connection with the land possession. But now we have finalized that process and we have secured the land ownership certificate from the Addis Ababa City Administration,” Tewolde said.
The CEO said the other factor that delayed the construction is that Ethiopian is not building the hotel alone, as it was originally planned. “It is not only Ethiopian that will build the hotel. Hainan Air of China and the China Africa Development Fund have teamed up with us to build the hotel.
The majority shareholder will be Ethiopian (more than 50 percent) but Hainan Air and China Africa Development Fund will each have a share. So we are establishing a joint venture company. We have to also form a board of directors that will manage the hotel. So that is why it took so long. But I believe that we will soon finish that and start the construction after a couple of months.”