VZCZCXRO5694
PP RUEHDT
DE RUEHDT #0239/01 1770718
ZNR UUUUU ZZH
P 260718Z JUN 07
FM AMEMBASSY DILI
TO RUEHC/SECSTATE WASHDC PRIORITY 3593
INFO RUEHBK/AMEMBASSY BANGKOK PRIORITY 0756
RUEHJA/AMEMBASSY JAKARTA PRIORITY 0887
RUEHLI/AMEMBASSY LISBON PRIORITY 0942
RUEHGV/USMISSION GENEVA PRIORITY 0101
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0981
RHEHAAA/NSC WASHINGTON DC
RUEHDT/AMEMBASSY DILI 2966

UNCLAS SECTION 01 OF 05 DILI 000239 
 
SIPDIS 
 
AIDAC 
SIPDIS 
 
STATE FOR EAP/MTS 
EB FOR AID/DCHA/OFDA , ANE FOR DWINSTON 
BANGKOK FOR TDOLAN AND RBARTON 
NSC - P. MARCHAM 
GENEVA - N. KYLOH 
 
E.O. 12958: N/A 
TAGS: EAID TT
SUBJECT: UPDATE ON USAID/OFDA-FUNDED ACTIVITIES IN EAST TIMOR 
 
REF: A) DILI 0065, B) DILI --179 
 
-------- 
 
Summary 
 
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¶1. USAID/OFDA Bangkok-based Regional Advisor for Asia and the 
Pacific (RA) traveled to East Timor June 4 - 7, 2007 to monitor 
ongoing USAID/OFDA-funded emergency and mitigation programs, and 
assess the humanitarian situation in Dili.  Outbreaks of 
violence continue to be a part of daily life in Dili, resulting 
in the prolonged displacement of approximately 100,000 people. 
There has been little positive change with regard to the 
Internally Displaced Person's (IDP) crisis affecting the capital 
city since the RA's last visit in February 2007.  Of the 
estimated 100,000 IDPs, approximately 30,000 are located in 45 
camps in and around Dili, and the remaining 70,000 live with 
host families in the districts outside of the capital.  With no 
realistic expectation that the IDP situation will change for the 
better until sometime after the June 30 parliamentary elections, 
relief organizations are currently planning to continue 
providing humanitarian assistance to the displaced populations 
through the end of December 2007.  Since the outbreak of the 
displacement crisis in May 2006, USAID/OFDA has obligated a 
total of USD 1,970,836 in emergency funding, of which USD 
995,241 has been programmed in FY 2007.  USAID/OFDA implementing 
partners include CARE, Catholic Relief Services (CRS) and the 
United Nations Children's Fund (UNICEF).  End Summary. 
 
-------------------------- 
 
General Situation Overview 
 
-------------------------- 
 
¶2. It is assumed by most humanitarian actors in Dili that any 
shift in the current IDP crisis will not occur until sometime 
after the June 30, 2007 parliamentary elections.  As it will 
take time for the new government to organize itself, approve a 
budget and, hopefully, agree on a policy for enhancing security 
and addressing the IDP crisis, most implementing agencies are 
planning to continue provision of humanitarian assistance 
through December 2007.  In line with this, USAID/OFDA is 
currently in discussions with its two primary implementing 
partners, CARE and CRS, to extend current emergency activities 
in the IDP camps through September 2007 via no-cost extensions, 
and potentially through December 2007 via small-scale cost 
extensions. 
 
¶3. The sitting Government of East Timor (GOET) has done little 
over the past five months to resolve the ongoing IDP crisis, 
which has displaced some 100,000 people in and around Dili. 
Back in February, it appeared as though the GOET's efforts to 
move to a needs-based distribution of food and non-food items in 
IDP camps were gaining momentum.  Four months on, however, 
targeted distribution of humanitarian assistance has yet to come 
to fruition.  Additionally, there has not been a formal 
registration process in the IDP camps, and it is clear that 
significant portions of those currently receiving relief 
supplies are living with one foot in the camps and one foot in 
their homes.  Until the GOET puts in place a comprehensive 
approach to resolving the current crisis, which addresses issues 
such as security, conflict resolution, land rights, and high 
unemployment amongst the 18 to 35 age bracket, to name a few, it 
is unlikely that the IDPs will be interested in changing their 
current status quo existence.  What is nearly certain, however, 
is that any such move towards IDP policy formulation and 
implementation will not come until sometime after the June 30 
elections. 
 
¶4. While the May 2007 presidential election was relatively 
violence-free, Dili continues to be plagued by sporadic clashes 
between rival youth and martial arts gangs.  The ongoing civil 
unrest throughout the city is the primary reason given by IDPs 
residing in camps for why they will not return to the homes from 
which they have fled.  Of the approximately 100,000 IDPs, 6,000 
households, or around 30,000 people, have actually lost or had 
their homes damaged as a result of the violence.  Of this 
figure, only 600 cases have been officially verified, according 
to discussions with the Norwegian Refugee Council (NRC). 
 
DILI 00000239  002 OF 005 
 
 
 
¶5. For the approximately 70,000 IDPs who have not lost or had 
their homes damaged, but continue to reside in camps or host 
family situations, most list security, or lack there of, as the 
primary reason why they refuse to return to their homes. 
Without formal reconciliation processes and bolstered police 
units visibly stationed in areas of continued violence, IDPs are 
reluctant to leave the relative security of the camps. 
 
¶6. While security may be stated as being the most pressing 
concern amongst the IDP population, the reasons for their 
remaining in camps or host family situations are more complex. 
Land title and land rights are also at issue in many of the IDP 
cases. It is estimated that significant numbers of the IDP 
population do not hold proper title to the homes from which they 
fled.  In some cases, the homes of these former squatters, who 
are now IDPs, have been taken over by new squatters, leaving the 
IDP families with little recourse to reclaim the property. 
 
¶7. With no registration in the camps having taken place to date, 
and no real vulnerability assessment having been implemented, 
there is currently no way to properly target relief assistance 
in the camps or host family situations.  As such, general 
distribution of supplies continues.  Some of the individual camp 
managers have decided on their own to institute a registration 
policy, primarily in order to track the comings and goings of 
people residing in the camps, and this is helping to remove 
ghost beneficiaries from distribution lists.  However, it is 
critical that both the GOET and the United Nations (UN) support 
efforts to register IDPs and conduct vulnerability assessments 
in order to properly target relief assistance and reduce the 
chances that a dependency mentality will take hold amongst the 
IDPs. 
 
---------------------- 
 
Humanitarian Situation 
 
---------------------- 
 
¶8. The 2007 Consolidated Appeal (CAP) for East Timor will be 
complete as of the end of June 2007.  To date, of the USD 
16,578,930 requested in the CAP issued in January 2007, 
appealing organizations have received USD 10,400,000.  With the 
IDP situation expected to continue through December 2007, a 
second 2007 CAP is in the process of being drafted, with an 
expected launch date of July 2007. 
 
¶9. In discussions with some non-governmental organizations 
implementing both emergency and longer-term development programs 
in East Timor, concern was voiced that another CAP, if not 
clearly focused on addressing the displacement crisis, may 
inadvertently lead to the expansion of emergency humanitarian 
interventions in lieu of addressing more chronic development 
problems in East Timor.  The concern with this is that such 
humanitarian interventions, especially large-scale food aid 
distribution and cash for work projects not properly targeted or 
well designed, may break down traditional community volunteerism 
and participation in community development programs, and lead to 
an entitlement mentality amongst beneficiary villages.  It would 
be the position of USAID/OFDA that any continuation of 
humanitarian assistance under a CAP be limited and appropriately 
targeted to meet the needs of the most vulnerable populations 
affected by the current displacement crisis, while more chronic 
issues such as food insecurity, malnutrition and gaps in the 
public health system, be addressed through appropriate 
development interventions. 
 
¶10. Many of the 100,000 IDPs have been in camps or host family 
situations for more than a year now.  The UNHCR tents provided 
at the outset of the crisis are notionally designed to last 
approximately six months.  As such, the shelter situation in the 
camps is beginning to deteriorate.  According to the 
International Organization for Migration (IOM), the GOET has 
approximately 350 tents in reserve, and IOM currently has an 
order in for 850 additional tents.  As many of the tents 
currently in use will need replacing in the near future, IOM 
plans to request an additional 4,000 tents under the upcoming 
CAP. 
 
¶11. In an effort to begin the process of reintegration and, in 
 
DILI 00000239  003 OF 005 
 
 
some cases, relocation, the GOET and NRC have partnered to 
construct a total of 444 transitional shelter units in five 
separate locations in and around Dili.  Each transitional 
shelter settlement consists of 16 square meter housing units, 
each with a door, window and porch area, latrines, communal 
kitchen space, with each household having access to an 
individual hearth/cooking station, and adequate water points. 
Per NRC, the goal is to limit the number of users per latrine to 
approximate 10 to 15, or around two to three families (SPHERE 
minimum standards are one latrine per 20 people).  In the camp 
visited by USAID/OFDA RA, there was adequate water/sanitation 
facilities and space for creation of recreation areas and safe 
spaces for children, though NRC needs to identify partner 
agencies to manage such interventions. 
 
¶12. Of the 444 units constructed to date, only 155 were occupied 
as of June 7.  The GOET has identified four existing IDP camps 
as priority camps, which need to be emptied, with the current 
residents either moving into transitional shelter units, or 
returning to their homes.  The targeted camps include, 1. 
Hospital Camp; 2. Seaport Camp; 3. Obrigado Barracks Camp; and 
¶4. Airport Camp.  IDPs currently residing in the camps appear 
reluctant to move to transitional shelter units.  It was not 
clear during the visit if and how the GOET has 
announced/socialized policies related to how one qualifies for a 
transitional housing unit.  The current status of the 
transitional housing situation, coupled with other less than 
successful piecemeal attempts at enticing IDPs to leave their 
current camps, such as providing qualifying households with 
in-kind building materials, are examples of how the GOET's 
efforts at resolving the IDP situation have been poorly planned, 
coordinated and executed. 
 
¶13. Service provision in the camps with regard to food 
distribution, water and sanitation and health care continues to 
meet the basic minimum needs of the IDPs, though as stated 
previously in reftel A, the sanitation situation in most of the 
camps falls short of meeting SPHERE minimum standards.  In two 
of the camps visited by RA, the water supply situation is 
improving as UNICEF and the Department of Water and Sanitation 
(DNAS) have been able to access the Dili city water system by 
tapping into existing mainlines and channeling water to water 
tanks in the camps - this was observed in the Cathedral camp and 
the newly expanded Igreja Hosana camp.  The UN World Food 
Program (WFP) will complete its current round of food 
distribution, providing one month's ration for 100,000 
beneficiaries, by June 20.  As of June 5, there had been no 
formal decision made with regard to the continuation of general 
food distributions beyond the current distribution. 
 
¶14. Protection for IDPs residing in camps remains relatively 
stable, with CARE and CRS having installed lighting in and 
around latrine and wash areas, as well as having stationed gate 
guards at some of camps located in more violence-prone areas. 
RA was informed that most children in the camps continue to 
attend schools, either their previous school, or those located 
around the camps.  Camp managers and NGOs leading Site Liaison 
Support (SLS) have also focused attention on organizing games 
and sporting events for children in the camps, and bringing 
together youth from different camps to compete in various events 
and hold dialogue on issues related to peace-building and 
reconciliation. 
 
----------------------------- 
 
USAID/OFDA Partner Activities 
 
----------------------------- 
 
¶16. In FY 2007, USAID/OFDA provided USD 361,102 and USD 434,139 
in funding to CRS and CARE, respectively, to continue providing 
support to IDP camps [Note: CRS' award will end on June 30, 2007 
and CARE's award will end on July 31, 2007. End Note].  CRS is 
presently providing SLS in six camps in Dili, serving a total of 
8,087 IDPs, and CARE is serving approximately 10,000 IDPs in 13 
camps. 
 
¶17. During the month of May, CRS noted that there were influxes 
of IDPs into their newest camp site, Igreja Hosana - the camp 
was non-existent in March 2007, and now houses 472 IDPs.  The 
influxes continue to be associated with on-going security 
 
DILI 00000239  004 OF 005 
 
 
problems in Bairo Pite, Hudi Laran and Surik Mas.  In addition 
to the camps in Dili, CRS provides SLS for 12 camps in Baucau 
District, serving a total of 2,089 IDPs.  SLS in all camps 
consist of serving as a liaison between indigenous camp managers 
and relevant UN agencies and government departments responsible 
for provision of sector specific services in the camps, 
monitoring food aid distribution, undertaking minor repairs and 
upkeep of water and sanitation facilities, raising the 
foundations of tents, coordinating and facilitating activities 
targeting children in the camps, facilitating the provision of 
public health services through the Ministry of Health, promoting 
safety and security amongst women and children IDPs, vector 
control in camps, and distribution of non-food items. 
 
¶19. In addition to the SLS, CARE and CRS continue to promote 
dialogue and conflict mitigation activities within 
conflict-affected areas of Dili.  CRS currently works with 31 
aldeias in Dili's Comoro District to promote peace-building and 
conflict mitigation activities.  During the month of May, CRS 
facilitated more than seven events, which brought community 
members together to assess the current situation vis a vis 
neighborhood violence and its causes, discuss methods of 
prejudice reduction and strategies for reintegration of IDPs, 
and promote traditional approaches to reconciliation, such as 
the Tarabandu ceremony.  CRS also recently launched a new 
peace-building activity, where it facilitated a dialogue between 
more than 200 IDPs who fled from the Golgota aldeia and those 
community members still residing in the neighborhood. 
 
¶20. As mentioned previously, most relief organizations are 
making arrangements to continue the provision of relief services 
in IDP camps through year's end.  Based on this, CARE and CRS 
will seek to extend their existing programs, first through 
no-cost extensions, and then through the submission of 
cost-extension requests.  CRS has recently submitted a no-cost 
extension request, seeking to continue ongoing activities 
through September 30, 2007, and CARE is anticipating submitting 
such a request in the near future.  Between now and September, 
USAID/OFDA will consider the possibility of extending CARE's and 
CRS' grants through December 2007 via very modest 
cost-extensions. 
 
¶21. UNICEF: In May 2007, USAID/OFDA provided UNICEF with USD 
200,000 to undertake water and sanitation upgrades in camps for 
which it assumes wat/san responsibility.  As of June 5, UNICEF 
had received 80 percent of the funding requested in their CAP 
appeal, including USD 550,000 of the USD 770,000 it requested 
for water and sanitation interventions.  UNICEF is currently 
providing water and sanitation services in 18 camps in Dili and 
eight camps in Baucau.  Funding received under the first 2007 
CAP will likely enable UNICEF to continue service provision 
through July 2007.  In line with the general consensus that 
emergency interventions will be required through December 2007, 
UNICEF plans to request an additional USD 530,000 under the 
forthcoming CAP to support the continued provision of water and 
sanitation services.  To its credit, UNICEF has been strongly 
encouraging its GOET counterpart, DNAS, to take on more of the 
service delivery and management burden.  UNICEF confirmed that 
the GOET has taken over most water trucking to camps in Baucau 
District, is seeking longer-term solutions to ensuring water in 
the Dili camps, such as tapping into the city water system, and 
that it is in the process of assuming responsibility for 
environmental sanitation services in most camps.  However, 
UNICEF stated that the GOET currently lacks the capacity to 
independently upgrade and manage deteriorating water and 
sanitation facilities in camps. 
 
----------- 
 
Way Forward 
 
----------- 
 
¶22. Without a concerted and coordinated policy aimed at 
resolving the root causes of the current IDP crisis, the 
situation in and around Dili will likely continue unabated for 
some time to come.  Realizing that little will change until the 
new government is established and a budget has been approved, 
IDPs currently residing in camps and host family situations 
continue to play a waiting game to see what the future holds in 
store for them, while relying on government and foreign donor 
 
DILI 00000239  005 OF 005 
 
 
subsidies to meet their basic needs.  In order for the GOET to 
stave off the creation of a permanent welfare situation, 
formulation of a comprehensive policy that aims to both 
facilitate the movement of IDPs out of camps, thereby beginning 
the reintegration/resettlement process, and address underlying 
security and conflict issues needs to be a leading priority of 
any new government. 
 
¶23. As a first step in beginning the process of 
reintegration/resettlement, USAID/OFDA believes that it is 
imperative for the GOET, the lead UN agencies, and the relevant 
actors within the International Community in Dili to agree on 
and institute a comprehensive registration policy that will lead 
to the following: a) an accurate count of IDPs in camps and host 
family situations; b) a readily updatable database that can 
track the coming and going of IDPs for as long as the crisis 
continues; c) data on IDPs in camps that will allow for a 
vulnerability analysis, which will in turn support the move to 
targeted distribution of relief supplies; and d) an accurate 
count of the number of households qualifying as having a damaged 
or destroyed home. 
 
¶24. Towards this end, USAID/OFDA has held discussions with NRC 
regarding the possible implementation of an IDP registration 
process.  NRC has received notional support from the GOET for 
instituting a registration process, and will soon begin 
coordinating a registration working group, which will provide a 
forum for all relevant stakeholders to discuss and agree on a 
comprehensive approach to the registration issue.  NRC is 
currently in the process of drafting a formal proposal for 
consideration by USAID/OFDA, and is seeking to begin 
registration-related activities shortly after the June 30 
elections.  While USAID/OFDA will seriously consider NRC's 
proposal, it is too early to determine whether funding will be 
forthcoming. 
 
¶25. By extending existing emergency programs through September 
2007, and possibly through December 2007, USAID/OFDA 
implementing partners will continue to meet the basic needs of 
displaced populations in and around Dili in the short-term.  In 
an effort to kick-start longer-term reintegration and recovery 
efforts, which should be supported by appropriate donors and 
funding sources, USAID/OFDA will consider supporting efforts to 
register IDPs, thereby allowing for the targeted distribution of 
relief assistance based on proven needs and ideally facilitating 
the transition of IDPs out of their current camps.  To 
successfully resolve the current displacement crisis, it will be 
necessary for all stakeholders, GOET, UN, NGOs and donors, to 
work closely together to formulate and implement a comprehensive 
policy, which lays the foundation for reintegration/resettlement 
by addressing security concerns, fostering peace-building and 
reconciliation amongst conflict-affected communities, providing 
opportunities to unemployed and disaffected youth, and ensuring 
that appropriate solutions to current housing and land disputes 
are reached.  Without the institution of a holistic and 
integrated policy approach to solving the current crisis, the 
GOET's current piecemeal efforts to address the IDP crisis on a 
sector by sector basis will have little success. 
RECTOR