The plan is for international donors to pay for it. The government of Israel would not.
[quote=Newsweek]If the project is to be realized, the billions of dollars required would come from international state sponsors and donors, with Israel not paying for the island in any way. Israeli authorities would permit international actors to enter the country’s waters to help construct the project.
Still, officials are considering how to ensure the country’s security at the port and airport due to fears of Palestinian militant group Hamas receiving illicit arms and funds.
The artificial island plan is just one of several proposals which were put forward by transport and intelligence minister Yisrael Katz,and his political allies, earlier this year. However, all proposals face significant political opposition, including from Prime Minister Binyamin Netanyahu and Defense Minister Moshe Ya’alon
[quote=Ha’aretz]At least five proposals are on the table, including building a port in Egyptian territory in Sinai in the Al Arish area, construction of an artificial port opposite the Gaza shoreline, building it on the Gaza coast itself, and earmarking quays in Cyprus or Ashdod for Gaza-bound shipments.
However, these ideas are very much in the stage of “what if” planning:
[quote=Washington Post]Katz conceded that so far all that exists is a paper study and some drawings. Yet he talked about the project in grand terms, describing it as a way to both guarantee Israel’s security and award Gaza a portal to the world.
The Israelis have not spoken about the project with Hamas or the Palestinian Authority, which has nominal control of the strip.
Israel’s security cabinet has not formally endorsed this proposal and Netanyahu is declining comment.