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JERUSALEM, (Reuters) - Israel announced plans on Monday to expand two Jewish settlements in the occupied West Bank despite a ban on such construction in a U.S.-led plan for peace with the Palestinians.

The Housing Ministry published tenders inviting contractor bids to develop 150 plots for single family homes in Beitar Illit settlement. A further 78 plots were offered in Givat Zayit, part of the settlement of Efrat.

The U.S.-led peace “road map” requires a freeze on expansion of settlements in occupied land where Palestinians seek statehood. The Palestinians have also failed to meet their own obligation under the plan to crack down on militant groups

Beitar Illit and Efrat are part of the Gush Etzion settlement bloc, which Israeli Prime Minister Ariel Sharon has vowed to keep under any final accord with the Palestinians.

U.S. President George W. Bush has said Israel could expect to keep some settlements under any such deal.

Palestinians say this would deny them a viable state in the West Bank, where some 245,000 settlers live among 2.4 million Palestinians, and imperil efforts to restart peace talks. [Continue]