mohamed khamis: this is really a huge project. it's enormous. very, very big. reporter: big, smart, clean, and free of traffic jams. the new capital is expected to cost 40 billion euros. going up at its the heart -- the new parliament, the presidential palace, 36 ministries, and embassies. the government is supposed to begin moving in next year. mohamed khamis: it's clear the project is bigger than we could have imagine it's hard to comprend the dimensions of this place. reporter: it's everything the old capital city is not. home to nearly 20 million inhabitants, cairo is bursting at the seams. it has gigantic traffic jams, smog, chaos, and infrastructure there is crumbling. not to mention the high unemployment. millions of people without hope live in the grimy megacity. karim fathy is one of them. to live, he collects plastic bottles at this garbage dump. the 28-year-old earns about three euros a day, just barely enough to survive. karim: of course this work isn't good for my health. but who else is supposed to feed my family? i have to do something. reporter:

mohamed khamis: it's clear the project is bigger than we could have i igined. it's hard c comprehend the dimensionsns of this place. reporter: it's everything the old capital city is not. home to nearly 20 million inhabitants, cairo is bursting at the seams. it has gigantic traffic jams, smog, chaos, and infrastructure ththere is crumbling. not to mention the high unemployment. millions of people without hope live in the grimy megacity. karim fathy is one of them. to live, he collects plastic bottles at this garbage dump. the 28-year-old earns about three euros a day, just barely enough to survive. karim: o of course this work ist good for my health. but who else is supposed to feed my family? i hahave to do somethihing. reporter: : karim lives in ezbt khair allah, a slum in the middle of cairo. they call the quarter the people's republic of china because it's hopelessly overpopulated and dilapidated. houses here are practically all in need of repair. the sewage system doesn't work right, and the air is polluted. fathy pays 20 euros a month here for two rooms,