Yisrael Katz's plan, currently in the initial planning stage, involves constructing two underground stations and excavating over three kilometers of tunnel beneath downtown Jerusalem and under the politically and historically sensitive Old City.
The Western Wall is the holiest site where Jews can pray.
Transportation Ministry spokesman Avner Ovadia said today the project is estimated to cost more than USD 700 million and, if approved, would take four years to complete.
Katz said a high speed rail station would allow visitors to reach "the beating heart of the Jewish people - the Western Wall and the Temple Mount."
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Trump's announcement has enraged the Palestinians and much of the Muslim world. The United Nations General Assembly adopted a resolution last week rejecting the US's recognition of Jerusalem as Israel's capital, with several traditional American allies voting in favor of the motion.
Digging railway tunnels to the Western Wall would also entail excavating in Jerusalem's Old City, where religious and political sensitivities, as well as layers of archaeological remains from the city's 3,000-year history, could prove a logistical and legal quagmire.
Despite the likely opposition to the project, Ovadia said he expects the plans to be approved in the coming year, barring major complications. The Tel Aviv-Jerusalem high-speed line is expected to open next spring.
Katz has previously proposed other ambitious infrastructure projects, including an artificial island off the coast of the Gaza Strip that would serve as an air and seaport for the Palestinian territory, and a railway connecting Israel with Saudi Arabia.
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