A sediment basin in the new project being dug parallel to the Suez Canal partially collapsed early Monday, state television reported.
State television reported no casualties due to the collapse.
The head of the Suez Canal Authority, Mohab Memish denied in a phone interview with state television any truth to “rumours” that the new canal was affected, adding that all navigation in the Suez Canal is working regularly.
The situation is under control and the flowing water has been stopped, Memish added.
In August 2014, President Abdel Fattah al-Sisi launched a mega project, which entails digging a 72-km (45-mile) bifurcation to the Suez Canal as well as developing the Suez Canal region.
The new Suez Canal Development Project is implemented under the supervision of the armed forces. While launching the project, Sisi said digging the new bifurcation to the canal would be completed within a year, instead of a previous deadline of three years.