The expansion of the Elkana settlement, in the northwest of the West Bank, was approved in January and the tenders published Thursday, Israel's Land Authority said on its website.
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It came after Israel announced Sunday its biggest land grab in the West Bank since the 1980s, saying it planned to expropriate 400 hectares of land in the south of the territory, between the cities of Bethlehem and Hebron.
That move drew international condemnation, even from ally the United States and some cabinet ministers.
For example Finance Minister Yair Lapid said the move harms Israel, saying "We have just completed a military operation and we are facing a sensitive international arena. We are already struggling to preserve international support, why was it so urgent to create another crisis with the Americans just now?" Lapid asked rhetorically.
The US State Department urged Israel to "reverse this decision," and UN Secretary General Ban Ki-moon said he was "alarmed" by Israel's plans.
Israel's settlement building is seen as an obstacle to any lasting peace with the Palestinians, who want their future state to be on land much of which Israel has annexed or built settlements on.