Dubai construction company Arabtec is nearing completion of the planning and design stage of its $40bn deal to build one million homes in Egypt.
The announcement came as media reports suggested that the company was looking to change the terms of the deal, which it signed with the Ministry of Defence and Military Production on behalf of the Government of the Arab Republic of Egypt, to develop and construct middle-income housing in 13 locations.
Arabtec said in a statement: "The company will commence the project immediately after the finalisation of the planning and design stages, which have been nearly completed after achieving significant progress in this regard.
"We would like to inform you that the company has made positive progress and results in its discussions with the concerned authorities in Egypt in order to commence the project as soon as possible."
The homes will be built on land that has been provided by the armed forces. The project is part of the initiative taken by the Egyptian authorities to provide affordable housing for Egyptians who were facing the housing deficit problem, due to growth in the country's population.
"Through the developments, millions of Egyptians will have access to full-fledged communities, with public amenities such as schools, hospitals, parks and places of worship," Arabtec added.
Construction work on the project is expected to start in the third quarter of this year, with the first homes to be delivered in early 2017 and the entire project to be completed before 2020.
Image: An artist's rendering of the proposed housing project in Egypt. Photo: courtesy of Arabtec / PR Newswire.