Egypt is set to invest EGP300 million ($38 million) to implement the first phase of a new road linking the Assiut plateau with the Western Desert and Eastern Desert roads, a report said.

The first phase will see the completion of 22 km of the road, connecting the plateau with the Western and Eastern Deserts by a bridge over the River Nile, a Daily News Egypt report said, quoting Mohammed Nasser, head of the Central Agency for Reconstruction.

Nasser said that work on the first phase will begin during fiscal year (FY) 2015/2016, with investments of EGP50 million ($6.38 million).

The project targets the creation of a new urban area on the Assiut plateau to control the high real estate prices in the city, said Minister of Housing Mostafa Madbouly.

Madbouly added that his ministry is moving forward in several development and service projects in Upper Egypt, in addition to the activation of the new cities through offering housing units and land.

Madbouly noted that two roads will be built in Upper Egypt, one in Assiut and one in Minya, adding that the first stage of the New Toshka city will be launched in August. He said an integrated plan was set for all new Upper Egypt cities to launch commercial malls, services and various residential projects to attract citizens in this area to the new cities.