Fifth foreign firm pulls out of East Jerusalem cable car project as critics warn of Palestinian displacement

Italian consultancy declines contract days after authorities moved to award it; scheme threatens dozens of homes in Silwan, rights groups say

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A fifth foreign company has pulled out of a plan to build a cable car connecting West and East Jerusalem, a project critics say threatens Palestinian homes and heritage in occupied territory, while Israeli authorities insist the scheme is proceeding as planned.

The Italian cable car engineering consultancy ROPES has declined work on the project, its chief executive, Stephan Obexer, told the Guardian, citing another commitment in India. The company had been the subject of a notice of intent to award a contract without a public tender from the Jerusalem Development Authority (JDA) in late September, weeks before Israel's 27 October elections.

The 1.4km route, approved by the Israeli government in 2019 and upheld by the high court in 2022, would connect West Jerusalem to a planned 16,000 square metre tourist complex promoted by Elad, a settler organisation seeking to consolidate Israeli control over Palestinian areas of occupied East Jerusalem. The project had appeared to stall for four years before the JDA's September move.

At least four foreign companies, three French and one Swiss, had previously expressed interest in the project, with several withdrawing over its political sensitivity, according to Israeli newspaper Haaretz. A French company, CNA, pulled out less than a year ago, followed by Switzerland's Histec Engineering. In 2015, the French government urged one company not to participate.

A spokesperson for the JDA told Haaretz that the cable car continues to proceed according to plan and timetables, that steps to promote it are subject to the mandatory tenders law, and that the tender is expected to be ready for publication in the coming months.

Critics dispute the project's purpose. Emek Shaveh, an Israeli NGO, said the project threatens Palestinian communities and the timeless landscape of Jerusalem's historic core, and that its central motivation is to consolidate settlers' hold on the area and displace Palestinians from the Historic Basin. Alon Arad, the group's executive director, said the route begins in West Jerusalem and ends at a compound run by the far-right Elad Foundation, which stands to benefit from a project costing the state around half a billion shekels.

According to rights groups, the project directly threatens about 54 Palestinian homes in the Wadi Hilweh neighbourhood of Silwan, where authorities have issued 17 expropriation notices covering about 8.7 dunams (2.15 acres). Sari Kronish of Bimkom, an Israeli planning rights organisation, said cable cars would pass as close as four metres above rooftops and near residential windows, violating privacy and restricting future development for the roughly 450 residents living beneath the route.

The Israel Nature and Parks Authority said its involvement was limited to providing feedback on proposed alternatives. ROPES did not respond to questions about whether legal concerns over the project's location had influenced its decision, the JDA did not respond to the Guardian's request for comment, and the Elad Foundation, which does not appear to be formally involved, also did not respond.

The project is being accelerated amid escalating settler violence and land seizures across the occupied West Bank, including attacks this month on Palestinian villages, olive pickers and European diplomats.

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Analysis

Why This Matters

  • The cable car would run through occupied East Jerusalem, whose annexation by Israel in 1980 is not recognised internationally, and critics say it would entrench settlement in an area central to any future peace agreement.
  • The withdrawal of a fifth foreign firm signals the reputational risk for companies working on projects in occupied territory.
  • Israeli authorities say the project is moving ahead, so the dispute over Palestinian homes and the Old City's setting is set to continue.

Background

The project was approved by the Israeli government in 2019 and upheld by the high court in 2022. East Jerusalem was captured in the 1967 war and fully annexed in 1980, a status still considered occupation under international law. After four years of stagnation, the Jerusalem Development Authority revived the scheme in late September, weeks before Israel's 27 October elections, when it moved to award a consultancy contract without a public tender. The revival comes amid a surge in settler violence and land seizures in the West Bank since the Gaza war began in October 2023, including attacks on Palestinian olive pickers and European diplomats this month.

Key Perspectives

The Jerusalem Development Authority: says the cable car is proceeding according to plan and timetables, that steps to promote it comply with the mandatory tenders law, and that a tender should be published in the coming months. Emek Shaveh and Silwan residents: argue the project is designed to consolidate settler control and displace Palestinians from the Historic Basin, and that it violates the longstanding principle that no large infrastructure be built around the Old City. The Elad Foundation: not formally involved in the project, it did not respond to a request for comment; critics note it would benefit from the tourist complex at the route's end, funded with around half a billion shekels in state money.

What to Watch

  • Whether the JDA publishes the promised tender in the coming months and which companies bid for the work.
  • Whether further foreign firms withdraw or new contractors sign on despite the political sensitivity.
  • The outcome of Israel's 27 October elections, which could shape the project's momentum and the wider campaign of settlement expansion.

Sources

Checked

12 claims in this story checked against 1 source: 9 supported.

Show each claim
  1. SupportedA fifth foreign company has pulled out of the East Jerusalem cable car project.World news | The Guardian: “A fifth foreign company has pulled out of a plan to build a cable car from West to East Jerusalem”
  2. SupportedCritics say the project threatens Palestinian homes and could displace Palestinians.World news | The Guardian: “This project threatens the Palestinian communities and the timeless landscape of Jerusalem’s historic core,” said Emek Shaveh in a recent statement. “It is clear that the project’s central motivation is to consolidate the settlers’ hold in those areas as part of an effort to displace Palestinians”
  3. Partly supportedROPES declined a contract days after authorities moved to award it.World news | The Guardian: “the Jerusalem Development Authority (JDA) issued a notice of intent to award a contract without a public tender to ROPES”
  4. Not in the sourcesROPES declined the work days after the notice of intent to award.World news | The Guardian
  5. SupportedThe JDA issued the notice of intent in late September, weeks before Israel’s 27 October elections.World news | The Guardian: “until late September, just weeks before Israel’s 27 October elections, when the Jerusalem Development Authority (JDA) issued a notice of intent to award a contract without a public tender to ROPES”
  6. SupportedROPES chief executive Stephan Obexer said the company declined the work because of another commitment in India.World news | The Guardian: “Stephan Obexer, chief executive of ROPES told the Guardian his company had declined the consultancy work because of another commitment in India.”
  7. SupportedThe 1.4km route would connect West Jerusalem to a planned 16,000-square-metre tourist complex promoted by Elad.World news | The Guardian: “The 1.4km cable car route, approved by the Israeli government in 2019 and upheld by the high court in 2022, would connect West Jerusalem to a planned 16,000 sq metres tourist complex promoted by Elad”
  8. SupportedThe JDA says the project is proceeding according to plan and the tender is expected to be ready for publication in the coming months.World news | The Guardian: “the cable car continues to proceed according to plan and in accordance with the timetables set. Steps to promote the project are subject to the mandatory tenders law, and the tender is expected to be ready for publication in the coming months”
  9. SupportedAt least four foreign companies expressed interest, and several withdrew over the project’s political sensitivity, according to Haaretz.World news | The Guardian: “At least four foreign companies – three French and one Swiss – have expressed interest in the project, but several have withdrawn over its political sensitivity, according to Haaretz”
  10. SupportedRights groups say about 54 Palestinian homes are directly threatened, and authorities have issued 17 expropriation notices covering about 8.7 dunams.World news | The Guardian: “According to rights groups, the cable car project directly threatens about 54 Palestinian homes along its route in the Wadi Hilweh neighbourhood in Silwan”
  11. SupportedAbout 450 residents live beneath the route, where cable cars would pass as close as four metres above rooftops and near residential windows.World news | The Guardian: ““These buildings, home to roughly 450 residents, lie directly beneath the proposed route,” said Sari Kronish”
  12. Partly supportedThe project is being accelerated amid escalating settler violence and land seizures.World news | The Guardian: “According to Emek Shaveh, an Israeli NGO, the JDA had recently accelerated plans for a long-delayed cable car through occupied East Jerusalem”

Zotpaper

Written by June Katz on the World desk. Claims checked by Ines Fairley, verification. Read for legal risk by Marcus Hale, legal. Edited by Angus Burke, chief sub.

1 source9 of 12 claims matched to a sourcefirst published
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