The German bank KfW is funding a waste treatment plant in Samaria - on condition that it only serve the Arab population, the Legal Forum for Israel said on Tuesday.

According to the Forum, this same bank perviously funded the establishment of a water purification plant which has been noted for polluting the water flowing through the nearby valley of Wadi Kelt.

The Legal Forum warns that the establishment of the new waste treatment plant near the Jewish community of Rimonim will cause serious damage to a nearby archaeological site dating to biblical times.

Yesterday, the Knesset held a hearing which addressed an incident this week during which Palestinian Authority police opened fire after a confrontation at the site of the new building plans.

Although the Legal Forum and other environmentalist groups have repeatedly appealed to the Civil Administration to stop the construction plans, so far, the Administration has rejected their claims.

At the moment, the environmental group "Green Now" has filed a complaint with the Supreme Court which has led to a delay in the construction; the Civil Administration is expected to present a response next week.

According to the late archaeologist Adam Zartal, the planned waste treatment facility is near a circular rock structure that he identified as an ancient Israelite meeting place that is referenced many times in the Bible.