Egypt is building a sort of mega fence closed by high walls in the Sinai desert, in case there should be an exodus of displaced Palestinians from the Gaza Strip.
Cairo officials revealed this to the Wall Street Journal, specifying that Egypt would try to limit the number of refugees well below the area's capacity to around 50-60 thousand people.
The Cairo authorities, however, deny that they are building the structure.
For weeks, Egypt has tried to tighten security along the border to keep the Palestinians away, deploying soldiers and tanks.
More than 100,000 people could be accommodated in the new camp, surrounded by concrete walls, Egyptian officials said, adding that a large number of tents, not yet erected, had also been delivered to the site.
Cairo has been trying for weeks to prevent a wave of refugees from pouring across Egypt's borders, even threatening to withdraw from the ten-year peace treaty with Israel if this were to occur following its offensive against Hamas.
The fact that Cairo is now proceeding with contingency plans signals that Egyptian officials see this danger ever closer.
The governor of North Sinai has denied reports of the construction of a refugee camp for Palestinians, stating that the activity in the area is part of a project to inventory houses destroyed during the Egyptian military campaign against Islamic State extremists in the area.
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