Implementing the disengagement plan will cost NIS 6.5 billion, NIS 1.5 billion more than planned a 30% cost overrun.
The civilian part of the revised plan will cost NIS 4.1 billion, NIS 1.1 billion more than planned, as a result of the large number of amendments to the bill made by a committee headed by MK Avraham Shochat (Labor).
The military cost of disengagement has also risen sharply, and is currently estimated at NIS 2.4 billion. This sum includes allocations for the Israel Defense Forces and the Ministries of Defense, Justice, and the Interior.
Disengaging from the Philadelphi corridor will require more money, mostly for a rapid upgrading of the security fence surrounding the Gaza Strip to prevent weapons smuggling.
The cost estimate is not final, and could change in either direction, depending on the final arrangements by the SELA Administration for Assistance to Settlers from the Gaza Strip and Northern Samaria, headed by Administration Director Yonatan Basi.
Demolishing the homes of the Jewish residents, including transportation of the ruins to within the green line, will cost NIS 50-70 million. Not demolishing the homes is considered a better solution, and will reduce the cost. Sale of the Jewish residents’ houses to a third party is not being ruled out, if serious potential buyers emerge. No decision has been made about the fate of various Jewish-owned production facilities. Leaving them in the hands of the Palestinian Authority will increase competition with Israeli agriculture, but is nevertheless considered a trust-building measure.
Despite the cost overrun for the disengagement plan, there is no concern that the proposed 2005 budget framework will be breached. As of now, no further budget cut to finance the high cost is planned. The disengagement budget is NIS 2.2 billion annually for 2005-2007. Government sources said that the burden could be borne.
Published by Globes [online] - www.globes.co.il - on February 28, 2005