Israeli authorities are expected to move forward with plans to build around 9,000 new housing units in an illegal Israeli settlement in East Jerusalem, a move critics say would further undermine the prospects for a future Palestinian state.

The District Planning and Building Committee is set to discuss and approve outline plans on Wednesday for construction at the site of the abandoned Qalandiya airport, in northern East Jerusalem. The proposed settlement, known as Atarot, is seen as comparable to the controversial E1 settlement plan, long criticised for fragmenting Palestinian territory, News.Az reports, citing Al Jazeera.

Peace Now said the project would be built in the middle of a densely populated Palestinian area, stretching from Ramallah in the West Bank through Qalandiya refugee camp, ar-Ram, Beit Hanina, Bir Nabala, and Kafr Aqab. The settlement would create an Israeli enclave surrounded by hundreds of thousands of Palestinians, effectively cutting off East Jerusalem from the rest of the West Bank.

“This is a destructive plan that, if implemented, would prevent any possibility of connecting East Jerusalem with surrounding Palestinian areas and would, in practice, block the establishment of a Palestinian state alongside Israel,” the group said in a statement.

Peace Now accused the far-right government of Prime Minister Benjamin Netanyahu of using the current political climate to permanently bury chances for a negotiated peace. The organisation said policies aimed at “managing the conflict” have instead led to greater insecurity and instability.

Plans for the Atarot settlement date back to early 2020, when Israel’s Housing Ministry submitted the proposal to Jerusalem’s municipality. Although bureaucratic preparations were completed within months, the plan reportedly faced objections from Israel’s Environmental Protection and Health ministries, as well as opposition from the administration of former US President Barack Obama.

Before construction can begin, the project still requires additional government approvals and the launch of tender processes. Most of the land involved has been designated by Israel as “state land”, meaning Palestinian landowners would not be consulted.

The move comes as Israel accelerates settlement construction across occupied Palestinian territories and advances de facto annexation of parts of the West Bank, amid its ongoing war on Gaza.

Meanwhile, demolitions and arrests continue across the West Bank. On Wednesday, Israeli forces began demolishing Palestinian buildings in Biddu, northwest of East Jerusalem, citing lack of permits. In Ein Yabrud near Ramallah, settlers reportedly burned Palestinian vehicles and vandalised property with racist slogans. Arrests were also reported in several areas, including Nablus.

Local officials said the Israeli military plans to demolish 25 residential buildings in the Nur Shams refugee camp later this week, further deepening humanitarian concerns in the occupied territories.

News.Az