US embassy cable - 05TELAVIV6579

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 006579 
 
SIPDIS 
 
E.O. 12958: DECL: 11/21/2015 
TAGS: PREL, PGOV, KWBG, IS, SETTLEMENTS 
SUBJECT: GOI ISSUES TENDERS FOR CONSTRUCTION IN MA'ALE 
ADUMIM, PLANNING 350 ADDITIONAL UNITS 
 
REF: TEL AVIV 04830 
 
Classified By: Deputy Chief of Mission Gene A. Cretz for reasons 1.4 (b 
) and (d) 
 
1.  (C) Summary:  Israeli press reported on November 17 that 
the Israel Lands Authority issued two separate tenders for 
the sale of 13 plots in Ma'ale Adumim.  The plots range from 
431 to 1,067 square meters, and will cost between $69,000 and 
$125,000.  In addition, Minister of Construction and Housing 
Yitzhak Herzog announced this afternoon, November 21, on Kol 
Israel radio that his ministry would approve plans to build 
350 units in the 07 neighborhood of Ma'ale Adumim in the 
coming days.  Colonel Oded Herman told econoff that the 
master plan for these units was approved in 1995, and that 
Herzog is referring to detailed plans which include all the 
necessary infrastructure.  Herman also said that the master 
plan was for 600 total units, and that the Housing Ministry 
is working on the remaining 250 units, which have not yet 
been announced.  Senior DDG for Planning and Coordination 
Chaim Fialkoff at the Housing Ministry professed not to have 
any details on the plans, but told econoff he would check 
when the Ministry expects to publish the plans.  End summary. 
 
 
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Tenders Issued in Ma'ale Adumim 
------------------------------- 
 
2.  (U) Press reported Thursday, November 17, that the Israel 
Lands Authority issued a tender for 11 plots to construct 
single-family houses on Site 6 of Ma'ale Adumim settlement, 
east of Jerusalem.  According to the tender, which was 
published in Yediot Aharanot, the plots of land will be from 
431 to 630 square meters, and can be leased for 98 years, 
with an option to extend for an additional 98 years.  They 
will cost a minimum of NIS67,500, approximately $15,000.  The 
houses will be privately financed by the residents, and the 
tender states that the expenditure for development will be 
NIS244,000-325,000, or $54,000-72,000, depending on the size 
of the plot.  Buyers must bid by December 25, 2005. 
 
3.  (U) In addition, press reported on November 17, that the 
Israel Lands Authority issued a separate tender, also for 
Ma'ale Adumim, for two plots to construct single-family 
houses on HaKatrus Street.  According to the tender, which 
was published in Ma'ariv, one plot of land will be 912 square 
meters, and will cost a minimum of NIS82,000, approximately 
$18,200.  The expenditure for development for this plot will 
be NIS411,000, approximately $91,300.  The second plot will 
be 1,067 square meters and will cost a minimum of NIS83,000, 
approximately $18,400.  The expenditure for development for 
this plot will be NIS481,000, or $107,000.  Both plots can be 
leased for 98 years, with an option to extend for an 
additional 98 years, and buyers must bid by January 8, 2006. 
 
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Planning for Another 350 Units Underway 
--------------------------------------- 
 
4.  (U) Today, November 21, Minister of Construction and 
Housing Yitzhak Herzog announced on Kol Israel radio that his 
ministry would approve plans to build 350 units in the 07 
neighborhood of Ma'ale Adumim in the coming days.  He 
reportedly said that he supports building inside the 
settlement as a way to strengthen the greater Jerusalem area, 
but noted that he is opposed to building in the disputed E-1 
neighborhood of Ma'ale Adumim.  (Note:  Per ref A, Herzog, 
during his tenure as Housing Minister, has approved tenders 
in settlements that he considers to be in the "consensus 
settlement blocs" that will be in Israel, or to the west of 
the separation barrier.  End note.)  Herzog's comment on E-1 
comes at the heels of Defense Minister Shaul Mofaz's 
statement last week that a decision on whether or not to 
build in E-1 would be made before elections.  In a possibly 
related event, the Housing Ministry published tenders in 
Ha'aretz on November 17 for bids to build two transformer 
stations and prepare infrastructure in the 07 neighborhood. 
 
5.  (C) Colonel Oded Herman of the Ministry of Defense told 
econoff that the master plan for these units was approved in 
1995, and it was up to the Housing Ministry to work out the 
detailed plans which included the necessary infrastructure. 
(Note:  The master plan is simply an indication that 
interested parties want to build in the area.  End note.) 
According to Herman, the Housing Ministry has so far prepared 
the detailed plans for the 350 units announced by Herzog, and 
it is still working on an additional 250 units since the 
original master plan was for 600 units.  Econoff spoke with 
Chaim Fialkoff, Senior DDG for Planning and Coordination at 
the Housing Ministry, and he professed not to have any 
specific details on the plans.  He said he would check on 
when the plans will be approved and published, and if there 
are any other projects being planned in Ma'ale Adumim. 
 
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