The Egyptian government is set to develop a new residential city at El Alamein, a town located on the Mediterranean Sea in the northern governorate of Matrouh, at a investment of E£3 billion ($337 million), said a report.

The Ministry of Planning is preparing the general plan of the first phase of the New El Alamein city, which will come up over a 33.6-million-sq-m area on the north-western coast of Egypt, reported Daily News Egypt.

The first phase of the project will include a tourism development, part of the downtown area, and the city’s residential area, according to a source at the Ministry of Planning.

The government had allocated E£531 billion ($59.6 billion) from the state budget and government investment during the current fiscal year to implement development projects and infrastructure such as roads, bridges, electricity, and sanitation.

The contract for the infrastructure work in the first phase has been assigned to the Arab Contractors (Osman Ahmed Osman & Co) and the Société Egyptienne D’entreprises (known previously as Mukhtar Ibrahim).