Egyptian construction groups Arab Contractors (AC) and Orascom Construction have started work on a E£18-billion ($2 billion) tunnel construction project which will be completed by the end of 2018, said a report.

Under this project, three tunnels will be dug under the Suez Canal by the end of 2018, reported Amwal Alghad.

These tunnels are part of major developmental projects in the Suez Canal and will link the canal cities designated for cars and railway to ease trade activities, the report stated.

Two of the tunnels will be dug at Port Said for cars, while the third would be for railway linking the east with west Suez Canal, it added.