The Prime Minister, Ehud Olmert, personally authorised the construction of 750 new housing units, in the neighbourhood "Agan Ha'ayalot", of the settlement Givat Ze'ev
 
In addition Peace Now revealed plans to construct in the Jerusalem neighbourhood of Neve Ya'akov.
 
Peace Now General Director: Yariv Oppenheimer: "The decision to build 750 housing units, is a political timebomb, that will weaken Abu Mazen's status and damage the chances of reaching a political agreement. The Government of Israel continues to expand and construct throughout the settlements, in total contradiction of its stated international commitments"

For the report in JPost
For the report in AFP