JERUSALEM: Israel on Wednesday announced plans to build 1,500 new homes in east Jerusalem, the part of the city claimed by the Palestinians, just hours after it freed a group of Palestinian prisoners as part of a deal to set peace talks in motion.

The settlement construction was seen as an attempt by Prime Minister Benjamin Netanyahu to make up for the prisoner release, for which he has been sharply criticized at home. The prisoners were jailed for deadly attacks on Israelis.

Interior Ministry spokeswoman Lital Apter said Wednesday that the 1,500 apartments would be built in Ramat Shlomo, a sprawling settlement in east Jerusalem. She said Israel also plans to develop an archaeology and tourism site near the Old City, home to Jerusalem’s most sensitive holy sites.

Israel first announced the Ramat Shlomo plans in 2010 during Vice President Joe Biden’s visit to Israel, sparking a diplomatic rift with Washington that took months to mend. Wednesday’s decision is the final approval needed, and construction can now begin immediately, officials said.

The Palestinians condemned the latest settlement plans, but it was not immediately clear if it would directly impact the talks, which are taking place behind closed doors and away from the public eye as both sides had agreed to.

“We are worried and concerned that if Israel continues with the expansion of settlements, this might kill the two states vision which we would like to see on this land,” said Palestinian Prime Minister Rami Hamdallah.

Nabil Abu Rdeneh, a spokesman for Palestinian President Mahmoud Abbas, condemned the move, saying it was “destructive to the peace efforts and will only lead to more tensions.”

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