MUNICIPAL CONSTRUCTION IN EAST JERUSALEM:

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000303

SIPDIS

SIPDIS

NEA FOR FRONT OFFICE. NSC FOR ABRAMS/SINGH/PASCUAL

E.O. 12958: DECL: 02/15/2018
TAGS: PBTS IS PHUM KWBG
SUBJECT: MUNICIPAL CONSTRUCTION IN EAST JERUSALEM:
FIVE-STEP PROCESS FROM EMPTY LOT TO FINISHED BUILDING

Classified By: Consul General Jake Walles, per reasons 1.4 (b) and (d)


1. (C) SUMMARY: Construction in East Jerusalem on public
land is approved through a five-step process which, depending
on the plan's size, complexity, and political sensitivities
can take several years to complete. Building plans require
approval by both a local and regional committee, a 60-day
public review period and final board approval, publishing and
awarding of tenders and finally issuance of construction
permits. The GOI reserves the right to not award tenders in
Jerusalem, even to the highest bidder. Recent announcements
and headlines on East Jerusalem construction are plotted on
this approval timeline septel. (NOTE: All of the procedures
described below apply in all parts of the expanded Jerusalem
Municipality. END NOTE) END SUMMARY.

Step One: Local Board
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2. (C) The first step in East Jerusalem construction on
public land is filing a development plan with the Jerusalem
land planning board, a subcommittee of the city council
headed by the Deputy Mayor. This is the first point when a
plan becomes publicly known. Approval at the local planning
committee typically takes several months but can take up to
two years, depending on the size and complexity of the
proposal. The local board only considers the feasibility and
appropriateness of the plan, not the land's legal status.
Legal challenges to the status of the land can be made at any
stage, but only an injunction by the Israeli High Court of
Justice can stop the approval process. (Note: a development
plan will only be accepted if part of an approved town plan;
while all Israeli neighborhoods in East Jerusalem have town
plans, most Palestinian neighborhoods do not, making new
construction for Palestinians legally impossible in many
cases. End note).

Step Two: Regional Board
--------------


3. (C) From the Municipal planning board, the plan goes to
the regional land planning board for secondary approval.
This is typically a quicker, "rubber stamp" approval of the
local board's decision without substantial debate or
additional inquiry.

Step Three: Public Review and Final Approval
--------------


4. (C) After approval by both local and regional boards, the
plan is deposited for public review for 60 days, and is
required to be published in Hebrew and Arabic newspapers.
After the 60-day review, the plan returns to the local board.
Members of the public can attend the local board's final
approval meeting to air concerns or objections to the plan.
The local board will then approve the plan, approve it with
changes, or disapprove it.

Step Four: Tenders
--------------


5. (C) After final approval, the Israel Land Administration
(ILA) or the Ministry of Construction and Housing (MOCH)
issues public tenders for the land within the approved plan,
usually in phases or blocks. Tenders will be announced,
typically with a deadline of six weeks, and information,
phone hotlines, and tours will be facilitated for bidding
contractors. Following the deadline, the MOCH or ILA will
typically take one month to select a winning contractor and
award tQ bid. (Note: The process planning approval on
private land in East Jerusalem omits the tendering stage. End
Note).


6. (C) Jerusalem tender announcements usually contains an
escape clause in which the ILA notes its right to "accept any
offer or reject all offers, including the highest." The ILA
can thus legally "let the clock run out" without accepting an
offer (effectively suspending the construction plan) if it
chooses to.

Step Five: Contracts and Building Permits
--------------


7. (C) The winning bidder must sign construction contracts
and secure financial guarantees for the project within 60
days after tender award, and then apply for all required
building permits from the Jerusalem municipality, a process
that can take up to another year. With permits in hand,
construction crews break ground, with completion required

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within three years of the contract signing date. (Note:
nearly all Municipal building permits are for Israeli
construction; only a handful of permits are issued for
Palestinians each year, due to legal restrictions,
prohibitive costs or political objections. End note).


Case Study: The 307 Har Homa Units
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8. (C) The 307 units at Har Homa/Jebel Abu Ghneim announced
just after Annapolis were part of Plan 5053A plan originally
approved with the Jerusalem local planning board during the
1990's (step one). After approval at the local and regional
levels (step two),and following the 60-day review period it
received final approval on as Plan 5053A on March 30, 1997
(step three) and was subsequently amended as "Plan 7509" on
March 13, 2003. On December 4, 2007 the ILA published a
tender (step four) for part of Plan 7509 that contained the
307 units, listing a January 13, 2008 deadline for bidding.
On February 13, 2008 the ILA awarded the tenders, and the
development plan will now move into the final phase of
contracting and permits (step five),after which construction
will commence.

WALLES