The project involves the construction of a township over an area of about 400,000 squares metres. The successful bidder will install all the infrastructure for the zone, including roads, landscaping, and drainage, sewerage, electricity, water and telephone lines. The contractor will also build 70 four-storey and five 11-storey residential blocks, as well as a municipal centre, a clinic, a mosque, schools, shops and offices.

Six international contractors originally submitted bids for the two-year contract in May. However, a retender was subsequently announced as a result of bids coming in over budget. A key condition of the tender was that bidders had to agree to begin work on 1 January, irrespective of the security situation in Gaza.

The consultant is Germany's Diwi Consult International.