Israel to build new homes in Jewish settlement

JERUSALEM (Reuters) - Israel announced plans on Wednesday to build 286 new homes in a Jewish settlement in the occupied West Bank, despite U.S. and Palestinian calls to halt settlement expansion.

Housing Minister Zeev Boim instructed his office to publish a tender to build the additional housing units in the Beitar Illit settlement, near Jerusalem, a ministry official said.

The construction will address "the pressing needs of Jerusalem's natural growth", said the official, Eran Sidris.

"We don't have any houses for the young religious people in Jerusalem so we have to build in Beitar Illit."

A 2003 peace "road map", reaffirmed by Israeli and Palestinian leaders at a conference hosted by U.S. President George W. Bush in November, requires a halt to all settlement activity on occupied land where Palestinians seek statehood.

However, Israeli Prime Minister Ehud Olmert, in keeping with the previous government's policy, has vowed to keep West Bank settlement blocs, including enclaves near Jerusalem, under any future peace accord.

The Israeli government contends this warrants the continued building of homes within major settlement blocs, though U.S. officials have consistently demanded a freeze.

Palestinian leaders say settlement expansion around Jerusalem could cut off Palestinians' access to the holy city and carve up the West Bank in a way that would deny them a contiguous state.

(Reporting by Brenda Gazzar; editing by Ralph Boulton)