The aid group will set up the camp two kilometres (1.2 miles) south of Choucha, where Tunisian authorities and the United Nations are already handling another camp, regional Red Cross director Monji Slim told AFP.
"We are preparing ourselves for the worst, if ever we need to receive 100,000 people, other foreigners or Libyans," he said.
The new camp, which is expected to be completed within the week, should accept some 5,000 refugees but has a capacity of up to 15,000, he added.
Meanwhile he said that the UAE had offered to open a separate camp nearby and build a hospital.
An estimated 100,000 mainly foreign migrants have crossed from Libya into Tunisia since February 20, Tunisian officials said. Many have been repatriated in an international effort but thousands remain in temporary camps facing growing problems of hygiene.
But over 10,000 Bangladeshis remained stranded in Choucha as their government lacked the funds to evacuate them back home to safety. (*)
Editor: Kunto Wibisono
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