Egypt’s Ministry of Housing, Utilities & Urban Development will start approaching investors for the Alamein New City project by the end of the year, sources close to the scheme have told MEED.

The government, which is serving as the project’s master developer, previously said it will approach private investors once the infrastructure works on the project are complete.

Work on the infrastructure in the area started in February 2016, when the local Arab Contractors and Societe Egyptienne D’entreprises (previously known as Mukhtar Ibrahim) were appointed by the government to carry out all road and utilities work.

In mid-2016, the Ministry of Planning, Follow-up & Administrative Reform said the first phase of the El-Alamein city project requires an investment of up to $337m. A statement from the ministry at the time added that in the next fiscal year, 2016/17, it was prepared to earmark the amount from the state budget to develop the project.

Alamein New City is a government-supported scheme to develop a new city in the North Coast area, and has received technical assistance from the UN Habitat’s Achieving Sustainable Urban Development Programme.

Former president Adly Mansour issued a presidential decree in May 2014 approving the reallocation of 2.4 million square metres of state-owned land to the New Urban Communities Authority (NUCA) to be used to develop the city.

The conceptual plan, which was carried out by the local Associated Consultant, aims to develop five main industries – tourism, regional trade, agriculture, logistics, and higher education – to attract new investment into the area, and create a centre for employment to support Alexandria.

The first phase, which will aim to house 20,000 residents, will be made up of a tourism development area and a residential area with retail space.