Egypt signed a memorandum of understanding with China Rail Group Limited on Wednesday to construct an Olympic park and six government buildings in the new administrative capital, Minster of Housing, Moustafa Madbouly, was quoted as saying by state news agency MENA.
Egypt plans to build an administrative capital estimated to cost $45 billion as part of President Abdel Fattah El-Sisi’s plan to boost the economy through a series of mega-projects.
The Chinese conglomerate will present its designs within 30 days of signing the MOU that stipulates that the Egyptian government contribute to 15 percent of the works.
The Olympic park will be built on 2000 feddans and the total area for the six buildings is planned to reach 214,000 square metres.
The project is expected to be completed within a time span of 30 months.
Egypt's government is aiming to complete the first phase of the administrative capital on 10,500 feddans from 170,000 feddans in a period of two years, Madbouly said in October.
The ambitious mega-project was first presented during the March economic conference in Sharm El-Sheikh and an initial agreement was signed with Mohammed Al-Abaar of Capital City Partners to lead developments.
However, as the talks stalled, Egypt signed an agreement with China State Construction Engineering Corporation to study the building and financing of the administrative area in the new city where all the ministries would be moved.
During his visit to Egypt earlier this month, Chinese President Xi Jinping signed a number of cooperation deals -- in the transportation, power generation, and civil aviation sectors -- worth $15 billion, according to the Egyptian Minister of International Cooperation Sahar Nasr.