Thanks to their attempt to micromanage the war Israel screwed up in Lebanon so Olmert & Peretz decided the solution is to say look we will develop a system to protect from those short range rockets. Then for the feel good factor the system will be made in Israel not only will we do something no imports from US off the shelf systems. So Olmert said to Israeli defense companies here is around $350 million now dream something up, doesn't matter what or how much its going to cost later just make something. Then after that until the election we kept getting regular boasts from Olmert how its only going to be another 2-3 years till its all ready. The whole thing was to divert attention to his failings. Iron Dome would better be described as scrap Iron because its to expensive to operate.
Jordan foreign minister says to speak with Kerry on Israel-Palestinian conflict (Reuters)
from the article: U.S. allocates $205 million for Israel's Iron Dome anti-rocket system