VZCZCXRO7755
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHIK RUEHKUK RUEHLZ RUEHROV RUEHSR
DE RUEHLB #0385/01 0921410
ZNR UUUUU ZZH
R 021410Z APR 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 4579
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHTV/AMEMBASSY TEL AVIV 1382
RUEHJM/AMCONSUL JERUSALEM 4588
RHEHNSC/WHITE HOUSE WASHDC
RUCNDT/USMISSION USUN NEW YORK 3627
RHMFISS/USCENTCOM SPECIAL HANDLING MACDILL AFB FL
RHEHAAA/NSC WASHDC

UNCLAS SECTION 01 OF 03 BEIRUT 000385 
 
SIPDIS 
 
DEPT FOR NEA/FO, NEA/ELA 
DEPT FOR PRM/FO, PRM/ANE 
ALSO FOR IO ACTING A/S WARLICK 
P FOR DRUSSELL AND RRANGASWAMY 
JERUSALEM FOR REFCOORD CKAPLAN 
INL FOR A/S JOHNSON 
USUN FOR WOLFF/GERMAIN/SCHEDLBAUER 
NSC FOR MCDERMOTT AND SHAPIRO 
PRM FOR ACTING A/S WITTEN 
ALSO FOR PRM BROOKS-RUBIN AND RAMGOOLIE 
 
E.O. 12958: N/A 
TAGS: EAID PREF PREL PTER KPAL LE
SUBJECT: LEBANON: UNRWA DIRECTOR--WE ARE RUNNING OUT OF CASH 
 
REF: JERUSALEM 378 
 
SUMMARY 
-------- 
 
¶1.  (SBU) In a March 27 meeting with international donors, 
United Nations Relief and Works Agency for Palestinian 
Refugees in the Near East (UNRWA) Lebanon Director Salvatore 
Lombardo stressed the dire financial situation that UNRWA 
faces.  Regarding Nahr al-Barid reconstruction, he said the 
land expropriation process and the Lebanese Armed Forces' 
(LAF) treatment of Nahr al-Barid visitors had improved.  The 
GOL's adoption of UNRWA's "Master Plan" for reconstruction 
was proceeding on track.  However, Lombardo said the 
requirement that UNRWA obtain construction permits could 
delay reconstruction efforts.  Lombardo termed the 
assassination of PLO Deputy Representative to Lebanon, Kamal 
Medhat a "huge loss" for the Palestinian people in Lebanon. 
End Summary. 
 
UNRWA BUDGET SHORTFALL 
THE WORST EVER 
----------------------- 
 
¶2.  (SBU) In a March 27 meeting for international donors 
attended by the Ambassador, the United Nations Relief and 
Works Agency for Palestinian Refugees in the Near East 
(UNRWA) Lebanon Director, Salvatore Lombardo, said UNRWA 
faces the worst budget shortfall in its history.  Lombardo 
attended UNRWA's Extraordinary Session of the Advisory 
Committee (Ad-Com) in Amman, Jordan on February 17 and said 
UNRWA faces a budget shortfall of $52 million in 2009, and 
$88 million in 2010 (reftel).  The deficit for 2010 is the 
worst ever and puts UNRWA in a difficult situation where it 
may have to cut services for Palestinian refugees in Lebanon 
fairly soon if additional funding is not received, according 
to Lombardo.  For example, Lombardo hinted that UNRWA may 
have to cut teachers' salaries while asking them to work 
double shifts and adding to the number of students they have 
in their classrooms.  Lombardo proposed working with UNRWA,s 
international donors to see what cuts can be made to the 
budget, so as to not effect major initiatives funded by 
donors. 
 
LAND EXPROPRIATION PROCESS 
MOVES TO NEXT LEVEL 
-------------------------- 
 
¶3.  (SBU) Lombardo noted that the Lebanese cabinet had 
resolved the outstanding issue of how the GOL notifies 
property owners that land expropriation will occur in a way 
that will allow expropriation to move ahead quickly.  (The 
Nahr al-Barid refugee camp resides on land still owned by 
private Lebanese citizens.  Under a recently approved cabinet 
decree, the GOL decided to expropriate the 32 land on which 
the camp sits.)  The measure will allow expropriation, and 
the commencement of construction, to proceed faster than it 
would have otherwise. 
 
¶4.  (SBU) Lombardo said that Oman had transferred $7 million 
to the GOL,s Ministry of Finance to pay for the land 
expropriations (a total of $9.6 million is needed).  This 
amount pays for the expropriation of enough plots for UNRWA 
to begin construction on "Packages 1 and 2", the UNRWA 
compound directly outside the camp, and UNRWA run schools. 
(Note:  UNRWA divided Nahr al-Barid camp reconstruction into 
"packages."  Package 1, which includes 120 buildings for 399 
family shelters, and Package 2, includes 330 buildings for 
1,029 families.  Package 1 will also include the 
infrastructure for both Package 1 and 2 as well as the 
off-site infrastructure for the entire camp, such as the 
water supply system and waste water connections.  End Note.) 
 
 
 
BEIRUT 00000385  002 OF 003 
 
 
¶5.  (SBU) Regarding the "new camp," (an adjacent area to the 
Nahr al-Barid camp that houses a number of Palestinian 
refugees) Lombardo said some of the homes had not been fully 
destroyed.  Therefore, UNRWA could start repairing many of 
the standing buildings which would mean families could begin 
to return.  He added that Greece (which just donated $1 
million Euros) and France will fund water sanitation projects 
in the new camp, and Germany and Italy plan to initiate 
infrastructure projects as well. 
 
FINAL ISSUES HOLDING UP 
ADOPTION OF MASTER PLAN 
----------------------- 
 
¶6.  (SBU) The other remaining issue is that UNRWA still needs 
to attain construction permits to begin reconstruction. 
Lombardo wants the GOL to waive this requirement for UNRWA. 
However, GOL Chief Technical Advisor for Nahr al-Barid 
reconstruction Dr. Sateh Arnaout stated that UNRWA will have 
to obtain the construction permits, as waiving this 
requirement would require parliament to amend the law. 
However, Lombardo feels that the waiver is needed, and said 
PM Siniora's help will be needed to solve this issue. 
Arnaout said the GOL will most likely approve UNRWA's Master 
Plan at its April 6 cabinet meeting.  Once it's approved, 
UNRWA can begin to apply for construction permits to begin 
reconstruction, Arnaout added. 
 
¶7.  (SBU) (Note: Subsequently, in a April 1 phone 
conversation, Dr. Arnaout said the GOL recently decided to 
allow UNRWA to construct balconies on some of the buildings 
within the camp.  The Lebanese Armed Forces (LAF) initially 
had opposed this plan on security grounds.  This was one of 
two issues holding up the GOL's adoption of the UNRWA 
developed Master plan.  End note) 
 
MORE ACCESS 
TO THE CAMP 
----------- 
 
¶8.  (SBU) Lombardo said the LAF will give refugee friends and 
relatives living outside Nahr al-Barid, as well as NGO 
employees, a six-month pass to enter the camp, as opposed to 
the two-month passes previously given to visitors.  The LAF 
also plans to open five or six more access points to enter 
the camp and increase the number of lanes to accommodate more 
drivers.  The LAF will also conduct random car searches as 
opposed to systematic ones, to decrease checkpoint delays. 
Finally, Lombardo said that LAF Commander General Jean 
Kahwagi promised that LAF soldiers atcheckpoints will be 
more polite to residents and visitors entering and exiting 
the camp. 
 
UPDATEON DONOR 
CONTRIBUTIONS 
---------------- 
 
¶9.  (SBU)  Overall costs for Nahr al-Barid reconstruction are 
estimated to be around $323.4 million, according to Lombardo. 
 Less than 20 percent of that has been pledged.  UNRWA has 
directly received $32.3 million (of the $42 million pledged 
so far) towards the reconstruction, and will receive 
additional funding of around $10 million from the World 
Bank-administered Multi-Donor Trust Fund (MDTF.)  So far, 
according to Arnaout, Spain has donated $7.9 million to the 
MDTF, while Norway gave $1.42 million and Finland donated 
$130,000  Lombardo added that UNRWA wants to invite China to 
join the MDTF.  In addition, there are outstanding 
unconfirmed pledges of $10.1 million.  This leaves a funding 
shortfall of around $270 million for NBC Reconstruction. 
With the $32 million received so far, UNRWA plans to begin 
construction on &Packages 1 and 2.8 
 
¶10. (SBU) Regarding the Relief and Recovery, UNRWA has 
 
BEIRUT 00000385  003 OF 003 
 
 
received nearly $8.9 million (out of $42.7 million requested) 
and $4.9 million of pledges for related projects.  The 
European Commission (EC) guaranteed funds for the rental 
subsidies to 3,275 families and food parcels to 3,100 
families that will last through December 2009.  This amounts 
to roughly $1.5 million every three months, according to 
Lombardo.  UNRWA has not received funding to cover 
hospitalization costs for Nahr al-Barid refugees, Lombardo 
said.  He also noted that the United Arab Emirates Red 
Crescent Society recently donated $1 million to UNRWA to 
construct a further 149 temporary shelter units for displaced 
Nahr al-Barid camp families. 
 
¶11. (SBU) Lombardo said there were no updates regarding the 
missing pledges from the Gulf states.  He noted that UNRWA's 
Commissioner-General Karen AbuZayd met with Gulf leaders in 
Sharm el-Sheikh, and that most of them confirmed that their 
interest in making a donation.  (Note:  AbuZayd will travel 
to Lebanon on April 15-16.  End Note.)  Lombardo said he felt 
something would happen soon, but that UNRWA would not "rock 
the boat" by making a big fuss with those potential donors. 
 
 
DEATH OF PLO DEPUTY 
A HUGE LOSS 
------------------- 
 
¶12. (SBU) Lombardo said the recent assassination of PLO 
Deputy Representative to Lebanon Kamal Medhat was a "huge 
loss" for the Palestinian people.  The GOL launched an 
investigation into the assassination, and a PLO security team 
from the West Bank arrived to Beirut to help GOL officials 
with the investigation, he added.  The message from the GOL 
and PLO Representative to Lebanon Abbas Zaki calling for 
restraint were positive, Lombardo noted.  All Palestinian 
factions had attended Kamal,s funeral, he said. 
 
SISON