'Iam very concerned that at a time when we need to build confidence between the parties, the continued building and the settlement activity has the potential to harm the negotiations going forward,' Rice told reporters.
During her visit, Rice plans to meet Olmert in Jerusalem and President Mahmoud Abbas in the West Bank city of Ramallah. She will also hold three-way talks with the lead negotiators, Livni and former PM Ahmed Qureia.
