VZCZCXRO9268
PP RUEHROV
DE RUEHJM #0378/01 0631415
ZNR UUUUU ZZH
P 041415Z MAR 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC PRIORITY 4256
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 2891
RUEHGV/USMISSION GENEVA 0169
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 JERUSALEM 000378 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR PRM/FO, PRM/ANE, NEA/IPA 
 
E.O. 12958: N/A 
TAGS: PREF PREL PGOV PHUM EAID KPAL
 
SUBJECT: UNRWA'S FEBRAURY 2009 EXTRAORDINARY SESSION OF THE ADVISORY 
COMMISSION 
 
REF(S): 
 
¶1. (SBU) The United Nations Relief and Works Agency for Palestine 
Refugees in the Near East (UNRWA) convened an Extraordinary Session 
of the Advisory Commission in Amman, Jordan on February 17. UNRWA 
underlined its dire financial situation and provided an update on 
its operations in Gaza.  UNRWA anticipates a 2009 budget shortfall 
of $52 million, which will lead to cuts in its regular operations if 
additional contributions are not received.  Based on current 
projections, shortfalls are expected to grow to $88 million in 2010 
and $116 million in 2011.  The Gaza crisis has heightened UNRWA's 
urgent need for additional funding, as it expects to expand programs 
in Gaza.  End Summary. 
 
Opening Remarks 
--------------- 
 
¶2. (SBU) In his opening address, Chairperson of the Advisory 
Commission and Norwegian Representative to the PA Tor Wennesland 
complimented UNRWA's exceptional performance in Gaza, noting that it 
"redefined public perceptions of the Agency."  He expected demand 
for UNRWA's services would increase and urged donors to respond 
positively to the budget deficit, which threatens UNRWA's ability to 
provide basic services. 
 
¶3. (SBU) The Vice Chairperson and Egyptian Ambassador Omar Abu 
Al-Ata noted that this extraordinary Advisory Commission session 
came at a critical juncture for the Palestinian people.  He spoke 
about the Egyptian efforts to mediate and implement a Gaza cease 
fire and to host the March 2 Gaza reconstruction conference in Sharm 
El-Sheikh.  Al-Ata stressed that UNRWA's participation in the 
conference will be critical.  He urged the international community 
to meet its obligations towards UNRWA and noted that Egypt will 
continue to support UNRWA's efforts to obtain additional 
international UN staff positions. 
 
¶4. (SBU) In her opening address, UNRWA Commissioner General Karen 
AbuZayd noted that the war in Gaza was destructive and tragic, but 
its aftermath provides an opportunity to work for a lasting peace. 
AbuZayd maintained that UNRWA installations sustained serious 
damages during the conflict and that a UN Board of Inquiry headed by 
Ian Martin will investigate and report on the circumstances 
surrounding the incidents affecting UNRWA and other UN agencies. 
She called upon the international community to restore a sense of 
normalcy to Gaza by opening the crossings.  AbuZayd thanked donors 
for their support to UNRWA's Quick Response Plan, but emphasized the 
urgent need for additional support to UNRWA's regular budget.  She 
noted that the Agency has reached "a moment of unprecedented 
financial challenge" with an expected budget shortfall in 2009 of 
$52 million. 
 
UNRWA's financial situation 
--------------------------- 
 
¶5. (SBU) UNRWA Deputy Commissioner General Filippo Grandi briefed 
donors on the Agency's poor financial situation. He said UNRWA 
expects severe shortfalls in the General Fund (the regular budget). 
In 2009, UNRWA expects a $52 million deficit in meeting minimum 
requirements, a figure that does not include the $72 million 
shortfall in so-called unfunded requirements.  (Note:  unfunded 
requirements include infrastructure improvements, training for 
teachers and staff, and other activities that would enhance UNRWA's 
overall effectiveness.)  He projected the 2010 shortfall to be $88 
million and the 2011 shortfall to be $116 million. 
 
¶6. (SBU) Grandi also outlined the current funding situation for 
UNRWA's emergency appeals.  He stated that UNRWA had received $142 
million towards the $345 million Quick Response Plan for Gaza, $14 
million towards UNRWA's $85 million emergency appeal for the West 
Bank; $9.3 million for its $42 million Relief and Early Recovery 
Appeal in Lebanon; and $42 million for its $282 million, three-year 
construction plan for Nahr el-Bared camp in Lebanon. 
 
¶7. (SBU) Grandi noted that UNRWA has implemented austerity measures, 
cutting back on travel and training and has notified employees that 
they are unlikely to receive salary increases this year commensurate 
with host government pay to civil servants.  Grandi emphasized 
UNRWA's efforts to improve overall effectiveness through a 
three-year reform process and urged donors to do their part by 
keeping pace with the needs.  He thanked the AdCom's "special 
guests" (from Kuwait, Bahrain, Qatar, and Saudi Arabia) for 
responding to Gaza needs and asked them to consider expanding 
support to the General Fund. 
 
UNRWA Update on Gaza Recovery 
 
JERUSALEM 00000378  002 OF 002 
 
 
----------------------------- 
 
¶8. (SBU) UNRWA/Gaza Deputy Director Aidan O'Leary noted that the 
blockade imposed on Gaza since 2007 has radically altered the 
socio-economic situation, made even worse by the recent conflict and 
ongoing access restrictions.  With unemployment currently the 
highest in the world, aid dependency has exceeded 80 percent. 
O'Leary said that, even before the crisis started in December 2008, 
UNRWA had halted food distributions to 750,000 beneficiaries due to 
shortages of food items and packaging materials in Gaza. 
 
¶9. (SBU) Once the crisis started, O'Leary said, UNRWA quickly 
mobilized to respond; the Agency provided direct logistics support 
to the Ministry of Health to palletize and ship medical supplies and 
provided fuel out of UNRWA's reserves to run hospital generators. 
Most of UNRWA's health clinics remained open throughout the crisis 
with the normal caseload of 10,000 consultations per day.  UNRWA 
also opened its food distribution centers once shipments resumed on 
January 1, after which 15,000 beneficiaries received food rations 
every day.  At the height of the conflict, UNRWA assisted 50,000 
displaced persons in 51 of its 91 designated emergency shelters. 
UNRWA staff continued their duties despite sustaining serious losses 
in life and assets (14 UNRWA staff and contract workers were killed, 
and 57 facilities damaged). 
 
¶10. (SBU) O'Leary said that 2,800 refugee homes were completely 
destroyed in the Gaza conflict and 20,000 homes remain in need of 
repair.  UNRWA is now providing food assistance to 900,000 
registered refugees, although this number will decrease to 750,000 
once PA salaries are paid.  Roughly 140,000 persons have applied, 
and are on the waiting list for the Job Creation Program.  O'Leary 
stressed that the nine-month Quick Response Plan can be achieved if 
access to Gaza is eased.  He urged donors to consider the impact of 
the closure on every-day life.  He reiterated that 60 percent of 
UNRWA students have no textbooks because paper is currently 
prohibited. (Note: John Ging told RefCoord February 26 that COGAT 
had approved shipments of paper for textbooks.  End Note.) 
 
Donors Remarks 
-------------- 
 
¶11. (SBU) All donors paid tribute to UNRWA staff members for their 
exceptional work during the Gaza crisis, stressing that UNRWA's 
efforts made survival possible for its beneficiaries.  They 
reiterated support for UNRWA's Quick Response Plan and affirmed 
commitment to meet their financial obligations to UNRWA.  The EC 
announced an additional contribution of 41 million Euros.  Norway 
appealed to the U.S., European Union, and Arab countries to follow 
the example of the Nordic countries and increase contributions to 
UNRWA's regular budget.  Sweden highlighted that they increased 
their contribution by 21 percent and that they will support UNRWA's 
attempts to secure funding for more permanent UN staff posts. 
Ireland and Finland were welcomed as new members of the Advisory 
Commission. 
 
Host Countries Remarks 
---------------------- 
 
¶12. (SBU) Host government representatives from Lebanon, Syria, and 
Jordan also praised UNRWA staff for their dedication and heroism 
during the Gaza conflict and for UNRWA's critical humanitarian role. 
 They demanded that Israel be held accountable for the "crimes they 
committed" against civilians and UNRWA facilities.  Host government 
representatives also demanded the opening of all Gaza crossings and 
the resumption of peace negotiations. 
 
Walles