VZCZCXYZ0024
PP RUEHWEB

DE RUEHJM #1089/01 1771404
ZNR UUUUU ZZH
P 261404Z JUN 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC PRIORITY 5255
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 3062
RUEHGV/USMISSION GENEVA 0179
RHEHNSC/NSC WASHDC

UNCLAS JERUSALEM 001089 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR PRM/FO, PRM/ANE, NEA/IPA 
 
E.O. 12958: N/A 
TAGS: PREF PREL PGOV PHUM EAID KPAL KWBG JO SY LE
 
SUBJECT: UNRWA'S June 2009 Advisory Commission Meeting 
 
Summary 
------- 
 
¶1. (SBU) At the June 9-10 Advisory Commission (AdCom) meeting of the 
United Nations Relief and Works Agency for Palestine Refugees in the 
Near East (UNRWA) in Amman, Jordan, Commissioner General Karen 
AbuZayd noted that the total deficit of $107 million, including $39 
million of essential operating expenses, will have a significant 
impact on the provision of health, education, and relief services to 
over 4.6 million Palestinian refugees in the region.  Progress on 
management reform of the Agency continues; UNRWA is developing a 
revitalized fundraising strategy to address its chronic funding 
shortfall.  Host and donor governments agreed that the High Level 
Event commemorating UNRWA's 60th anniversary at the United Nations 
in September would have limited speakers given time constraints, but 
deferred decision on the speakers list to the New York-based 
Steering Committee.  During the AdCom, Head of Delegation Liana 
Brooks-Rubin announced a USG contribution of $55 million to UNRWA's 
General Fund; these funds were incorporated into UNRWA's financial 
presentation described below.  End Summary. 
 
UNRWA's Deficit Hurts Programs 
And Regional Stability 
-------------------------------- 
 
¶2. (SBU) In her opening address, UNRWA Commissioner General Karen 
AbuZayd highlighted the political and socio-economic events that 
continue to increase the humanitarian needs of Palestinian refugees 
in the region.  UNRWA anticipates a $107 million shortfall amid 
increasing needs.  AbuZayd emphasized full funding of UNRWA is 
necessary to safeguard the basic health and education services 
provided to 4.6 million refugees and observed a growing apprehension 
among refugees and host governments at the prospect of a reduction 
in UNRWA services. AbuZayd concluded her remarks by reiterating the 
significant role that UNRWA plays in maintaining regional stability 
through serving the Palestinian refugees. 
 
UNRWA Developments in West Bank, 
Gaza, Lebanon, Jordan and Syria 
------------------------------- 
 
¶3. (SBU) Each of UNRWA's five field directors described the 
operational challenges and progress achieved over the last three 
months since the Extraordinary AdCom meeting in February: 
 
-- Gaza: UNRWA Field Director John Ging noted the "profoundly unjust 
policies" continue to hurt "the innocent people of Gaza while 
helping the violent extremists."  Ging said that access remains 
extremely limited except for medical supplies and basic food 
commodities.  Ging noted that Operation Cast Lead destroyed or 
damaged over 52,000 homes, 200 schools and many key buildings and 
infrastructure.  Although many pledges were made to enable the early 
recovery and reconstruction of Gaza, no construction materials have 
been allowed to enter.  Access for supplies needed for UNRWA's daily 
operations, Ging noted, has actually improved with the exception of 
UNRWA's security equipment, such as armored vehicles, limiting the 
mobility of international staff. 
 
-- West Bank: UNRWA Field Director Barbara Shenstone noted that 
operations are challenged by territorial fragmentation, insecurity, 
and "de-development," largely generated by the barrier, settlement 
expansion, and associated demolitions of Palestinian homes.  With 
rising unemployment, dependency on UNRWA's regular and emergency 
programs has increased.  Over the coming period, UNRWA/West Bank 
will focus on promoting the quality of its core programs in health, 
education and social services and strengthen its protection programs 
and emergency preparedness. 
 
-- Lebanon: UNRWA Field Director Salvatore Lombardo looked forward 
to a more politically stable environment in the wake of the 
elections.  He reported that Nahr al-Bared (NAB) reconstruction will 
soon commence after many delays and hindrances.  Lombardo hoped that 
the first package -- homes for 1,240 refugee families -- would be 
completed by mid-2010.  Pledges to date will enable UNRWA to 
construct two of the needed eight packages.  UNRWA continues its 
relief operations to the displaced from NAB, mainly providing rental 
subsidies and food assistance; an estimated 15,500 of the 27,000 
displaced have returned to shelters in the adjacent camp area. 
 
-- Syria: UNRWA's Acting Field Director Lisa Gilliam noted with 
appreciation the stable environment for refugees and said UNRWA 
would prioritize youth activities in the coming year.  Of the 
refugee population, only 17% of refugees complete secondary 
education; Gilliam noted that educational achievement has declined 
in younger generations compared to older ones.  Also, there is 
growing incidence of drug and alcohol abuse among Palestinian 
refugees in Syria.  To address this, UNRWA will strengthen its 
vocational training program, provide employment counseling and job 
placement, and enhance youth-focused activities. 
 
-- Jordan: Richard Cook, UNRWA's Field Director said that, despite 
the Government of Jordan's support, the Agency faces difficult 
challenges in meeting the needs of vulnerable groups.  For example, 
he noted that not all refugees enjoy the advantages of Jordanian 
citizenship while others live in remote areas and cannot easily 
access UNRWA services.  Staff protests over the lack of salary 
increases continue to be a challenge.  Despite interruptions, Cook 
noted that UNRWA made significant achievements in education and 
health programs.   UNRWA/Jordan's focus over the coming year will be 
on increasing the self-reliance of Palestinian refugees while 
maintaining core services at an acceptable quality.  Over the coming 
period, UNRWA will intensify advocacy on behalf of ex-Gazans (which, 
unlike most Palestinians in the country, lack Jordanian 
citizenship), address the implications of rising medical costs, and 
improve inadequate school facilities resulting in double shifting 
and over-crowdedness. 
 
UNRWA Financial Overview for 2009; 
Outlook for 2010 
---------------------------------- 
 
¶4. (SBU) In his presentation to the AdCom, UNRWA Deputy Commissioner 
General Filippo Grandi stated that maintaining UNWRA's current level 
of service throughout 2009 requires contributions of $545.6 million; 
currently, UNRWA is facing a deficit of $107 million, of which $39.3 
million is essential and equal to one month of salaries for UNRWA's 
nearly 30,000 refugee employees.  To compensate for this deficit, 
UNRWA will be forced to reduce, among other things, hospitalization 
reimbursement, provision of medication, staff training, and 
maintenance of facilities.   Another concern is the deficit in the 
Emergency Programs for the West Bank/Gaza and Lebanon.  In the West 
Bank, only 18% has been received of the $85 million required 
(against pledges totaling 29% of needs); in Gaza, only 24% of the 
$346 million has been received (of pledges totaling 54% of needs); 
and in Lebanon (for Nahr El Bared reconstruction) only 10% of the 
$328 million needed is received (against pledges totaling 21% of 
needs).  In the West Bank, UNRWA may be forced to halt its emergency 
programs by early July, dramatically affecting the lives of the most 
vulnerable refugees. 
 
¶5. (SBU) Grandi presented UNRWA's draft 2010 budget of $832 million, 
which includes $571 million for regular programs and another $261 
million for projects.  He noted that, if the current deficit levels 
persist into 2010, UNRWA will be forced to cut back on 
hospitalization benefits, cancer screening, oral health clinics, 
medications, provision of textbooks, and the number of teachers in 
UNRWA schools.  Meanwhile, other elements traditionally part of the 
regular budget will be "projectized," i.e. individual donors would 
need to support these costs directly.  Such projects include school 
building construction and maintenance and the purchase of medicines 
for non-communicable diseases. 
 
Host Governments Concerned that 
UNRWA May Reduce Services to Refugees 
-------------------------------------- 
 
¶6. (SBU) The Governments of Syria and Jordan rejected the suggestion 
that UNRWA may have to scale back benefits to Palestinian refugees 
and called upon donors to cover the anticipated deficit.  Both 
Syrian and Jordanian representatives also noted the Arab League's 
commitment to provide 7.2% of UNRWA's regular budget and the failure 
of member states to fulfill that commitment. 
 
UNRWA Organizational Development and Reform 
------------------------------------------- 
 
¶7. (SBU) Initiated in 2006, UNRWA's management reform process is 
nearing completion.  The UNRWA 2010-2011 biennium budget will be the 
first that is based on a six-year Medium Term Strategy as well as 
field-based needs assessments that link the Agency's overarching 
objectives, field-specific needs and available resources.  UNRWA 
Deputy Commissioner General Grandi noted recent achievements in 
refining recruitment procedures, empowering leadership in the 
fields, and decentralizing authority and accountability.  An 
Enterprise Resource Planning computer system, partially funded by 
the USG, will allow UNRWA to operationalize decentralized 
decision-making while maintaining a high standard of accountability. 
 
 
UNRWA Develops a New Fundraising Strategy 
----------------------------------------- 
¶8. (SBU) UNRWA's Director for External Relations Fabian McKinnon 
presented a new resource mobilization strategy to better address the 
structural fiscal deficits that plague the Agency.  Although 
government donors will continue to provide the majority of funding, 
the strategy aims to increase focus on non-traditional donors, such 
as foundations, communities, and individuals.  McKinnon proposes to 
do this through developing networks of influential persons and 
organizations, and seeking contribution from non-traditional 
resources in key countries. 
 
AdCom Members Welcomes High Level Event 
--------------------------------------- 
 
¶9. (SBU) The Advisory Commission welcomed the High Level Event (HLE) 
commemorating UNRWA's 60th anniversary during the High Level Segment 
of the UN General Assembly in September.  Intensive discussion 
ensued about the number of Foreign Ministers who would be invited to 
speak at the event, as several donor countries expressed interest. 
The AdCom deferred final decision on the speakers' list to the New 
York-based Steering Committee organizing the event. 
 
Future AdCom Chair and Vice Chair Arab States 
-------------------------------------------- 
 
¶10. (SBU) For the first time, the Chair and Vice-Chair of the AdCom 
starting June 2009 are both Arab states -- Egypt and Saudi Arabia, 
respectively.  It is hoped that Saudi Arabia's role as vice chair 
will increase the country's financial support to UNRWA.