"Official" story sounds like they are building completely new cities all at once, with plans to shift populations from nearby cities into the newly developed region…
From an engineering perspective, it does have benefits.. Think of how annoying it is to fix infrastructure while hoards of people go about their daily lives.. The work takes longer, becomes more dangerous, and the result is typically new sections adapted to fit an old system…
Having said all that.., I could see how this set-up could be used to force citizens to relocate into high-tech, surveillance-state residences… It's like the Big-Brother-Loving, FEMA Camp that never-ends…