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Egyptians have cried foul after the announcement that authorities are building a new luxurious presidential palace amid painful economic reforms that have taken a heavy toll on the poor and middle-class.

Authorities announced this week that work was underway to erect a summer palace for President Abdel Fattah al-Sisi in a government-funded project along the north coast of the country.

The Facebook page of New Alamein City images of the palace under construction, prompting an angry backlash from social media users.

Egyptians condemned Sisi for imposing harsh austerity measures while allowing such an extravagant official residence to be built using public funds.

"Once upon a time Sisi said he was ready to eat one meal a day for the sake of building Egypt and now here he is building himself a palace on the beach," said one Twitter user.

Many also accused Sisi of hypocrisy, recalling comments the president made last year that "Egypt is very poor".

Government sources told °®Âþµº's Arabic-language service that the palace will be used by the president to receive guests during the hot summer months.

They said the building is 70 percent complete and is made up of 50 rooms, 6 large public rooms, 4 restaurants and a gym.

In March, Sisi inaugurated the first phase of the mega city project, which will cost taxpayers an 6 billion Egyptian pounds ($336.5).

The city will also include council for ministers and other government buildings.

The move comes as Egypt is struggling to boost its economy after implementing a raft of painful reforms that have seen sharp price hikes.

Egypt is also constructing a new administrative capital in the desert some 45 kilometers (30 miles) to the east of Cairo.