Israel refusing to grant approval for construction of ISF base in Gaza – report

Israel has refused to grant approval for the construction of a military outpost to be used by the International Stabilization Force (ISF) by the Board of Peace in Gaza, The Guardian reports. 

In August, The Guardian reported that the Board of Peace had issued its first construction contract for Gaza to the Louisiana-based Arkel International. That contract was for the construction of a military outpost for around 150 ISF troops, who are slated to take over security in Gaza following the disarming of Hamas. 

Arkel International has previously contracted with the US government in other Middle Eastern countries, such as Iraq. 

At that time, The Guardian cited an email from a Board of Peace official, who said the board and the National Committee for the Administration of Gaza (NCAG), a group of Palestinian technocrats selected to oversee Gaza during the rebuilding phase, “are in the final stages of preparing several contract awards. None have been finalized.” 

The official also told The Guardian that “one prospective contract concerns facilities to support the international stabilization force (ISF), which will assist in implementing the roadmap’s security and governance arrangements.” 

Two months later, The Guardian reports, the Israeli government has not permitted Arkel International to begin work, citing “a person with direct knowledge of the matter.” 

The Guardian also claimed the Board of Peace, the IDF, and the Israeli government declined to comment. 

The planned “mission support site temporary outpost” is reportedly a small fortified position of about 100 meters by 100 meters (approximately 330 by 330 feet), at a former site of the now-defunct Gaza Humanitarian Foundation, which operated a couple of humanitarian aid distribution sites in Gaza between May and October 2025. 

The source told The Guardian that President Donald Trump’s Gaza Peace Plan cannot move forward without the establishment of the ISF presence in Gaza. 

“You can’t get in without [an international stabilization force (ISF)]. You can’t rebuild,” the source said. “There’s no security. There’s no deliveries of construction equipment. You can’t even start putting utilities. You can’t start putting in basic life-support facilities, you know, because without the ISF you can’t go in.” 

The source said the Board of Peace believes the Israeli government will approve the project after the Oct. 27 elections. 

Israeli government and military officials have insisted that no reconstruction work can start until Hamas is disarmed and the Gaza Strip is demilitarized. While Hamas officials told the U.S. they are willing to hand over their weapons, Israeli security officials say the terror group is using the ceasefire to try to rehabilitate its forces and reestablish control over the Gaza population. 

The Guardian report comes as other reports say the Israeli government approved a team affiliated with the Board of Peace to scout for secure locations where Hamas can surrender its weapons in the Gaza Strip.

Meanwhile, the IDF’s office of the Coordinator of Government Activities in the Territories (COGAT), sent a letter to Board of Peace High Representative Nickolay Mladenov, ISF Commander Maj. Gen. Jasper Jeffers, and UN Deputy Special Coordinator Ramiz Alakbarov, notifying them of a strike by Gaza merchants due to “the forced taxation mechanism imposed by Hamas and the escalating threats against merchants who refuse to cooperate with the organization.” 

Due to that strike, and the claim that Hamas is forcing the merchants to pay high taxes and fees to the terror organization, COGAT informed the officials that it would suspend the entry of private goods into the Strip. 

“Following this incident, and out of genuine fear for their lives, the merchants have announced that they will suspend all coordination of goods entering the Gaza Strip through the private sector, effective today (Wednesday),” the letter stated. 

The letter was first leaked by Israeli journalist Doron Kadosh. At the time of publication, neither COGAT nor the Board of Peace had made any official comment on the situation. 

COGAT claims that Hamas is demanding “approximately NIS 10,000 [about $3,225] for every truck carrying goods into the Gaza Strip.” 

“In addition, it [Hamas] requires merchants to sell approximately 30% of their goods in cash, which, according to the merchants, enables the organization to gain control over the proceeds,” the letter continues. 

“These demands directly contradict the commitments undertaken by approved merchants under the goods entry mechanism, which require all payments to be made and received exclusively through bank transfers,” COGAT stated, echoing a charge made by Israeli security officials.

“Although these practices are not new, the recent escalation in threats against merchants, together with yesterday's arrest, has led private-sector merchants to suspend their coordination activities until further notice,”  COGAT said.