Eleven thousand locals are expected to be employed in the Florida Heights development programme which was launched by the Nelson Mandela Municipality on Wednesday morning.
The R10 billion housing project will see 13 000 low-cost housing units built along the R75, which on completion will connect Uitenhage, Despatch and Port Elizabeth.
Nelson Mandela Bay Executive Mayor Mongameli Bobani said the project will be completed in two phases over the next 15 years.
He said it will also seek to provide inclusivity through employing local SMME's, and that black and female-owned businesses will be given preference.
Bobani said the first phase of the project will be completed over the next 5 years and will initially employ 1000 people.