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Israel approved Monday a $1bn deal with a local developer to build two new housing units for the “homeless” community of Durg, in a move that comes as Israel prepares to demolish two housing projects built by its former prime minister, Benjamin Netanyahu.

The government of Prime Minister Benjamin Netanyahu announced that it had received approval from Israel’s Cabinet to build the units, which will be the first of their kind in the country, as part of an agreement with developer Ofer Shabat.

The plan, which also includes a 3.2km extension of the existing Durg highway, is part of a $3bn plan to rebuild housing in the city, a population of over 2.5 million, which has been plagued by housing shortages.

The Israeli-led plan also includes the construction of a new “hotel” complex in the heart of the city’s most impoverished neighborhoods.

The $1 billion deal is part for a project that will allow a number of young people to move to Israel from neighbouring Egypt, according to a statement from Ofer’s office.

This development will provide the opportunity for a number new residents to settle in the Durg region, which was under siege by the Israeli army from 2012 until 2017, according Shabats.

The announcement was made at a ceremony at the newly built Durg residential complex, the site of which was inaugurated by Netanyahu and the Israeli president, Binyamin Netanyahu.

Shabatos said the plan would “benefit the people of Durga”.

“We have agreed that we will work to develop this project to provide more affordable housing for Durga’s people,” he said.

“We are committed to the construction and development of the Durga area, as well as the creation of new and modern housing complexes in the future,” Shabato added.

The new housing developments will also include a “hotels” complex, with two additional buildings. 

The development, which Shabatel said would provide affordable housing to Durga residents, will also provide “a number of new residents” to the area, Shabatra said.

The development was first announced in June.

It is currently under construction at a location close to a former military camp, which is being converted into a new development. 

Durg, the poorest city in Israel, has been under siege since 2012, with Israel and Egypt maintaining a blockade that has hindered the city from accessing water and electricity. 

It is home to some of Israel’s most destitute residents, many of whom live in shantytowns or on the streets, and has been repeatedly hit by deadly Israeli air strikes in recent years.

The area has seen an uptick in cases of the respiratory illness coronavirus, which the Israeli government says is being caused by people living in shanties and overcrowded housing. 

More than half of the 1,200 residents of Dburg are under the age of 30. 

There has also been an increase in the number of cases of “coital disorders”, which include multiple sex partners and the inability to have regular sex due to the lack of proper medical facilities.

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