Fifth Foreign Firm Withdraws From Jerusalem Cable Car Plan

Published: 21 October 2026. The English Chronicle Desk. The English Chronicle Online

A controversial cable car project planned to connect western and eastern Jerusalem has suffered another setback after a fifth foreign company withdrew from the scheme, intensifying scrutiny of a development that Palestinian residents and heritage organisations say threatens homes, property rights and the historic character of the Old City. Despite the latest withdrawal, Israeli authorities maintain that the project remains on track, raising questions about whether the long-delayed infrastructure plan will proceed amid growing political, legal and environmental opposition.

The proposed 1.4-kilometre cable car route has become a focal point in the wider dispute over land, settlement expansion and control of occupied East Jerusalem. Rights groups argue that the project would do more than provide transport for tourists. They warn that its route and destination could strengthen the presence of Israeli settler organisations in Palestinian neighbourhoods, potentially contributing to displacement and changing the cultural landscape surrounding some of Jerusalem’s most significant historic and religious sites.

The latest development involves ROPES, an engineering consultancy based in South Tyrol, Italy. In late September, the Jerusalem Development Authority issued a notice indicating its intention to award the company a consultancy contract without a public tender. However, ROPES chief executive Stephan Obexer said the company had declined the work because of another commitment in India. The company did not publicly establish whether concerns about the project’s political and legal implications played any part in its decision.

The withdrawal adds to a series of departures by international firms that had expressed interest in participating in the scheme. According to Israeli media reports, at least four other foreign companies, including three French firms and one Swiss firm, had considered involvement. Several have subsequently withdrawn, making it increasingly difficult for the authorities to secure the international expertise required to advance the project.

The cable car proposal was approved by the Israeli government in 2019 and subsequently upheld by Israel’s High Court in 2022. The plan is designed to transport visitors between western Jerusalem and a proposed 16,000-square-metre tourist complex near the Old City. The destination is associated with the Elad Foundation, a far-right settler organisation active in efforts to establish and expand Israeli settlement activity in Palestinian areas of East Jerusalem.

The project’s opponents argue that its significance cannot be understood simply as a question of transport infrastructure. They contend that the proposed route, the location of its support pillars and the planned tourist destination are closely connected to broader disputes over land ownership, Palestinian residency and the future status of Jerusalem.

East Jerusalem has remained at the centre of the Israeli-Palestinian conflict since Israel occupied the territory in 1967 and later annexed it in 1980. The annexation has not been recognised internationally, and East Jerusalem continues to be regarded as occupied territory under international law. The International Court of Justice has also concluded that Israel’s continued presence in the occupied Palestinian territory is unlawful and has called for an end to that presence.

Against this background, development projects involving land and infrastructure in East Jerusalem carry substantial political and legal significance. Palestinian residents and rights organisations fear that the cable car could reinforce existing patterns of settlement expansion while placing additional pressure on communities already facing difficulties securing planning permission and protecting their homes.

Emek Shaveh, an Israeli non-governmental organisation focused on archaeology and cultural heritage in the context of the Israeli-Palestinian conflict, has been among the project’s most prominent critics. The organisation argues that the scheme threatens Palestinian communities and the historic landscape surrounding Jerusalem’s Old City. It has warned that the development could help consolidate settler control in the Historic Basin, an area encompassing the Old City and its surrounding neighbourhoods.

The organisation has also questioned the political motivation behind the project, arguing that the route’s design and destination could give greater prominence to a settler-run tourist complex. Critics believe that the use of public resources for such infrastructure risks supporting a broader political agenda rather than serving the needs of Jerusalem’s diverse population.

Alon Arad, an archaeologist and executive director of Emek Shaveh, has argued that large-scale infrastructure near the Old City conflicts with long-standing principles intended to protect its historic setting. He has also raised concerns about the involvement of the Israel Nature and Parks Authority, whose responsibilities include the protection of natural and heritage assets.

The authority has said its involvement was limited to providing feedback on proposed alternatives. Its position suggests that it does not regard its participation as equivalent to taking responsibility for the overall political or planning objectives of the project.

The potential consequences for Palestinian households are particularly concerning to residents of Wadi Hilweh, a neighbourhood in Silwan at the foot of the Old City. Rights groups estimate that approximately 54 Palestinian homes could be directly affected by the proposed route through the acquisition of land or rights over the space above properties. Other homes in the surrounding area could face indirect effects.

Israeli authorities have issued 17 expropriation notices covering approximately 8.7 dunams of land, equivalent to about 2.15 acres. The land is intended to accommodate infrastructure, including the pillars needed to support the cable car system. Such measures have raised fears that private property rights could be restricted or that residents might face pressure to surrender land required for construction.

Sari Kronish, an architect and director of the East Jerusalem department at Bimkom, an Israeli organisation focused on planning and housing rights, has warned that the proposed cable cars would pass extremely close to residential buildings. According to her assessment, around 450 residents live in buildings directly beneath the planned route, with some cable cars expected to pass only four metres above rooftops and near residential windows.

For affected families, the concerns extend beyond the physical construction of the system. Residents fear a loss of privacy, restrictions on future building or renovation and prolonged uncertainty over the legal status of their properties. The placement of support pillars could also affect land use and access, depending on the final design and the implementation of expropriation measures.

The project has drawn opposition from Palestinian residents, Israeli heritage advocates and environmental groups. Critics argue that the historic character of Jerusalem cannot be protected if large infrastructure developments are introduced without sufficient consideration of the communities living in their path.

The planned route has also prompted wider debate about the relationship between tourism and political control. Supporters of cable car systems often present them as a way to improve access to crowded destinations, reduce road congestion and transport visitors efficiently. In Jerusalem, however, opponents argue that the proposed destination and the surrounding property disputes make the scheme fundamentally different from an ordinary transport development.

The Elad Foundation has been particularly controversial because of its activities in Palestinian neighbourhoods, including efforts associated with acquiring properties and establishing Jewish residential and tourist facilities in East Jerusalem. Rights groups say such activities can contribute to the displacement of Palestinian families and alter the demographic and cultural character of historically Palestinian areas. The foundation did not respond to requests for comment on the cable car controversy.

Although the organisation is associated with the proposed tourist complex, it does not appear to be formally involved in the cable car project itself. Nevertheless, its role in the wider area has made the destination a central concern for opponents.

The latest withdrawal also highlights the reputational challenges facing foreign companies considering participation in projects connected to occupied territory. Businesses may face scrutiny from governments, investors, employees and civil society groups over whether their work contributes to activities regarded as inconsistent with international law or human rights standards.

France previously urged a company not to participate in the scheme, while other foreign firms have withdrawn in recent months. The reasons for individual decisions have not all been publicly established, and ROPES has attributed its decision to a separate commitment in India. However, the repeated departures demonstrate the difficulties of attracting international partners to a project surrounded by sustained controversy.

Despite these setbacks, the Jerusalem Development Authority has insisted that the scheme will proceed. A spokesperson told Israeli media that legal challenges had been dismissed by the High Court and that the project continued according to the established timetable. The authority said the tender was expected to be prepared for publication in the coming months once its formulation had been completed. It did not respond to a separate request for comment on the latest developments.

The distinction between legal approval within Israel and the broader international legal debate remains important. The dismissal of domestic petitions does not remove the wider objections raised by Palestinian residents and rights groups regarding occupation, property rights and the consequences of settlement-related development.

The controversy is unfolding amid a broader increase in settler violence and efforts to seize Palestinian land across the occupied territories. During the annual olive harvest in October, Palestinian communities faced attacks involving damage to vehicles and trees, injuries and attempts to prevent farmers from reaching their groves. Reports also described attacks on European diplomats and other visitors in the West Bank.

These developments have intensified concerns among human rights organisations about the security of Palestinian communities and the protection of their livelihoods. For residents of East Jerusalem, the cable car dispute forms part of a wider struggle over housing, access to land, cultural heritage and the future of the city.

Jerusalem holds profound religious and historical significance for Muslims, Christians and Jews. The Old City and its surrounding neighbourhoods contain sacred places, archaeological remains and communities whose lives are closely connected to the area’s heritage. Any major development near these locations therefore carries implications extending beyond transport planning or tourism revenue.

The central question is whether the cable car project can advance without imposing unacceptable costs on the Palestinian families living along its route and without damaging the historic environment that makes Jerusalem distinctive. Opponents are demanding greater attention to property rights, cultural preservation and the rights of residents to remain in their homes.

For Israeli authorities, the immediate challenge is to secure the expertise and contractual arrangements needed to move the project forward. For Palestinian residents and their supporters, the priority is to prevent a development they believe could deepen displacement and strengthen settlement activity in occupied East Jerusalem.

The withdrawal of a fifth foreign company does not, by itself, mean the project will be abandoned. Yet it has renewed international attention on the proposal and the unresolved questions surrounding its impact. As the authorities prepare for the next stage of procurement, the future of the cable car remains closely tied to a much larger dispute over land, heritage, human rights and political control in Jerusalem.