Netanyahu, Katz silently approved reconstruction effort in Gaza Strip inside Yellow Line - report

Jerusalem Post/Israel News/Defense NewsAccording to Army Radio, the location marked for new construction is east of Rafah, within the Yellow Line, with the plan being to build new living spaces for Palestinians outside of Hamas' control.Follow us on Google Palestinians gather near a building damaged in an Israeli airstrike in Rafah, in the southern Gaza Strip March 9, 2024(photo credit: MOHAMMED SALEM/REUTERS)ByTZVI JASPERAUGUST 9, 2026 08:25Updated: AUGUST 9, 2026 08:44Prime Minister Benjamin Netanyahu and Defense Minister Israel Katz quietly approved new development and reconstruction in the Gaza Strip two weeks ago, Army Radio reported on Sunday morning.According to Army Radio, the location marked for new construction is east of Rafah, within the Yellow Line, with the plan being to build new living spaces for Palestinians outside of Hamas' control.Security sources said that the workers involved in the construction would be Gazan Palestinians, who are currently having their background checked by the Shin Bet (Israeli Security Agency).PMO denies Army Radio report of Gaza labor in reconstructionThe Prime Minister's Office responded to Army Radio's report, saying that it "distorts the facts and recycles old information."FILE PHOTO: Palestinians walk past the rubble of destroyed buildings, amid a ceasefire between Israel and Hamas, in Gaza City, November 19, 2025. (credit: REUTERS/Dawoud Abu Alkas/File Photo)According to the PMO, the project is a pre-existing UAE pilot that has been ongoing for several months.The PMO also denied that critical infrastructure such as electricity, water, and sewage would be worked on by Gazan workers.Transportation Minister Miri Regev also responded to Army Radio, saying that "We want Gaza to recover - the process can begin in any demilitarized zone."The Israel Envelope Forum and Tzav 9 condemned the report that Netanyahu and Katz had approved new construction, stating that "There is no demilitarized zone that is not held by our fighters."As soon as the IDF withdraws from there, Hamas will return to a rehabilitated zone with weapons to be turned against us," the protest groups stated. "This is not a reconstruction plan - it is a resuscitation plan for terrorism. Dismantling Hamas terrorists and complete demilitarization are a critical obligation before talks about reconstruction begin."Follow us on Google