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"It will be the capital of our independent state."
His remarks were made after Israel barred him from inaugurating another renovation project in the occupied and annexed eastern half of the city, in what it said was a political manoeuvre to exert Palestinian sovereignty over an area claimed by Israel.
The spat erupted late last week after the Palestinian premier announced plans to inaugurate several renovation projects in two east Jerusalem neighbourhoods, both of which lie on the West Bank side of Israel's separation barrier, which snakes through the city.
But one of the projects -- a renovated road -- is located in Anata neighbourhood, part of which falls within the Israeli municipal boundaries of Jerusalem, an area which is considered off-limits for any official activity by the Palestinians.
Following protests by rightwing groups, Israeli Prime Minister Benjamin Netanyahu ordered officials "not to let the Palestinian Authority conduct events and ceremonies in the municipal area of Jerusalem," a statement from his office said late Monday.
Fayyad called off the visit to Anata but pushed ahead with the event in Dahiyat al-Barid, which is located just outside the municipal boundaries and therefore of no interest to Israel.
"We have already rehabilitated 14 schools in Jerusalem in less than four months as well as several roads, and we will continue to work towards our goal of establishing an independent state," he said, speaking in the shadow of the huge separation barrier.
"Today we declare our victory and the victory of our projects against the occupation and the terrorism of the settlers," he said in reference to rising tensions between locals and Jewish settlers living in the city's eastern sector.
Meanwhile, the Anata opening ceremony went ahead with little fanfare, an AFP correspondent at the scene said. Witnesses said Israeli border police had set up an impromptu checkpoint at the entrance to Anata and were only allowing locals to enter.
The move to bar Fayyad was welcomed by deputy parliamentary speaker Danny Danon. "We will not be silent and we will not close our eyes to any subversive activity demonstrating Palestinian sovereignty over Israeli territory, even if it is only a picture for the newspaper," he said.
"Any Palestinian attempt to create facts on the ground will be met with an uncompromising response from Israel."
Following Netanyahu's directive, Interior Minister Yitzhak Aharonovitch issued a warrant banning all Palestinian Authority officials from holding events "in Israeli territory without special permission" saying they would be stopped by police.
Fayyad is himself a resident of occupied and annexed east Jerusalem, and lives in the neighbourhood of Beit Hanina which lies close to both Anata and Dahiyat al-Barid.
Israel seized Arab east Jerusalem during the 1967 Six-Day War and annexed it in a move not recognised by the international community.
In 2002, it began building a massive separation barrier, most of which lies inside the West Bank, in a bid to prevent Palestinian attacks.
In Jerusalem, some parts of the city's eastern sector have been left on the West Bank side of the barrier, although the city council is legally required to provide services to residents there, including health, education, police and emergency services.
In practice, many of these areas receive little funding, and in several cases the Palestinian Authority has stepped in to fund the renovation of schools or the tarmacing of roads.
Israel claims the whole of Jerusalem as its "eternal, indivisible capital" but the Palestinians want the eastern half of the city as the capital of their promised state.
The status of Jerusalem is one of the most intractable issues of the Middle East conflict.
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His remarks were made after Israel barred him from inaugurating another renovation project in the occupied and annexed eastern half of the city, in what it said was a political manoeuvre to exert Palestinian sovereignty over an area claimed by Israel.
The spat erupted late last week after the Palestinian premier announced plans to inaugurate several renovation projects in two east Jerusalem neighbourhoods, both of which lie on the West Bank side of Israel's separation barrier, which snakes through the city.
But one of the projects -- a renovated road -- is located in Anata neighbourhood, part of which falls within the Israeli municipal boundaries of Jerusalem, an area which is considered off-limits for any official activity by the Palestinians.
Following protests by rightwing groups, Israeli Prime Minister Benjamin Netanyahu ordered officials "not to let the Palestinian Authority conduct events and ceremonies in the municipal area of Jerusalem," a statement from his office said late Monday.
Fayyad called off the visit to Anata but pushed ahead with the event in Dahiyat al-Barid, which is located just outside the municipal boundaries and therefore of no interest to Israel.
"We have already rehabilitated 14 schools in Jerusalem in less than four months as well as several roads, and we will continue to work towards our goal of establishing an independent state," he said, speaking in the shadow of the huge separation barrier.
"Today we declare our victory and the victory of our projects against the occupation and the terrorism of the settlers," he said in reference to rising tensions between locals and Jewish settlers living in the city's eastern sector.
Meanwhile, the Anata opening ceremony went ahead with little fanfare, an AFP correspondent at the scene said. Witnesses said Israeli border police had set up an impromptu checkpoint at the entrance to Anata and were only allowing locals to enter.
The move to bar Fayyad was welcomed by deputy parliamentary speaker Danny Danon. "We will not be silent and we will not close our eyes to any subversive activity demonstrating Palestinian sovereignty over Israeli territory, even if it is only a picture for the newspaper," he said.
"Any Palestinian attempt to create facts on the ground will be met with an uncompromising response from Israel."
Following Netanyahu's directive, Interior Minister Yitzhak Aharonovitch issued a warrant banning all Palestinian Authority officials from holding events "in Israeli territory without special permission" saying they would be stopped by police.
Fayyad is himself a resident of occupied and annexed east Jerusalem, and lives in the neighbourhood of Beit Hanina which lies close to both Anata and Dahiyat al-Barid.
Israel seized Arab east Jerusalem during the 1967 Six-Day War and annexed it in a move not recognised by the international community.
In 2002, it began building a massive separation barrier, most of which lies inside the West Bank, in a bid to prevent Palestinian attacks.
In Jerusalem, some parts of the city's eastern sector have been left on the West Bank side of the barrier, although the city council is legally required to provide services to residents there, including health, education, police and emergency services.
In practice, many of these areas receive little funding, and in several cases the Palestinian Authority has stepped in to fund the renovation of schools or the tarmacing of roads.
Israel claims the whole of Jerusalem as its "eternal, indivisible capital" but the Palestinians want the eastern half of the city as the capital of their promised state.
The status of Jerusalem is one of the most intractable issues of the Middle East conflict.
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