The New Urban Communities Authority (NUCA) has signed a memorandum of understanding (MoU) with Chinese construction company, CGCOC Group, to establish the first industrial zone in New Al-Alamein, Invest-Gate reports.

Minister of Housing, Utilities, and Urban Development Mostafa Madbouly said in a press statement on Tuesday, May 29, that his ministry signed a MoU with CGCOC Group because of its vast experience, adding that NUCA’s board of directors approved the provision of lands to investors for the establishment of the industrial zone.

The minister has also added that the signing of the MoU marks the outset of founding the new city of Al-Alamein as the new commercial and administrative capital of the northern coast of Egypt.

In the statement, Madbouly stressed that the Egyptian government will work with the Chinese company to develop a sustainable green industrial zone in New Al-Alamein.

“It is planned that New Al-Alamein will be operated with renewable energy and water desalination utilities,” Madbouly revealed.

“The MoU is also a step forward in the economic and industrial cooperation between Egypt and China. With the implementation of this project, more and more investors are expected to come from China to pump investments in Egypt,” he affirmed.

The minister is yet to disclose the mega project’s total value of investments.

According to the statement, CGCOC Group is one of the leading 100 international contracting companies according to the annual Engineering News Record ranking from 2004 to 2014.