The city is the biggest of a series of mega-projects that President Abdel Fattah al-Sisi says are needed for economic development and to accommodate a growing population of 105 million, but critics say divert resources and increase Egypt's debt burden.

Government employees transferred in July to ministries and offices built in the new city's first phase, eight years after the launch of the project known as the New Administrative Capital (NAC).

"We have almost 48 000 employees coming every day," Khaled Abbas, Chairperson of the Administrative Capital for Urban Development (ACUD), told Reuters.

Built on virgin land, the city is designed to serve as a high-tech model for Egypt's future away from the clutter and chaos of Cairo. The government wants it to absorb part of Egypt’s population, which is growing by an estimated 1.6% a year.

Though the pace of works appears to have slowed recently, phase one of the city already includes a 70-storey tower, the tallest in Africa, an opera house with five halls, a mega mosque and the Middle East's biggest cathedral.

An electric train from eastern Cairo began operating last spring and an elevated monorail is due to start from the second quarter of this year, Abbas said.

Up to 100 000 housing units have been finished and 1 200 families have moved in, he added.

Major banks and other businesses will move their headquarters by the first quarter of 2024.

ACUD is poised to appoint a consultant to draw up a master plan for the capital's second, third and fourth phases, Abbas said.

Work on phase one should run from later this year until 2027.

"We have lots of demand now. That's why we have to start immediately on phase two. If there is the demand, then after a year or something like that we can work on phase three," Abbas said.

Landscaping has also begun on an irrigated, 10 km-long park, dubbed the "Green River".

ACUD hopes to inaugurate a giant sports area, the Olympic City, with a 93 000-seat stadium, by the second quarter, Abbas said.

--Reuters--