ROMANIAN FLOOD UPDATE

UNCLAS SECTION 01 OF 02 BUCHAREST 001609

SIPDIS

STATE FOR EUR/NCE - JMESSENGER, EUR/PPD - WALKER, EB/IFD
STATE PASS USTR FOR LERRION
TREASURY FOR STUART
USDOC FOR 4232/ITA/MAC/EUR/OEERIS/CEEB/BURGESS/KIMBALL
STATE PASS USAID/OFDA FOR CHRISTINE GOTTSCHALK
GENEVA FOR UN/OCHA, IFRCS
USEUCOM FOR ECJ4-ID

E.O. 12958: N/A
TAGS: EAID ECON EIND EFIN RO
SUBJECT: ROMANIAN FLOOD UPDATE

REF: A. BUCHAREST 01031


B. BUCHAREST 01505

C. BUCHAREST 01584

1) SUMMARY: Romania's summer of flood disasters has resulted
in 30 deaths, left thousands homeless, caused extensive
damage to roads and bridges, interrupted electricity and gas
networks, submerged prime agricultural land, and produced
approximately $2 billion in damage. The GOR has reacted to
the latest round, allocating $85.8 million in assistance to
the affected counties. International aid has also begun to
roll in, with the European Commission seeking to reprogram
several existing funds and bilateral assistance already
arriving from other countries. We responded with assistance
to the earlier affected areas in the west and south, and are
examining ways to respond to the latest disaster in the east.
END SUMMARY.

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SUMMER OF FLOODS
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2) Three separate floods have hit Romania since April 21,
2005, leaving 34 of 42 counties under water at one point or
another. The first disaster was declared on April 28, 2005
(reftel A). Rural communities in the affected region in
western Romania near the Serbian border, which was visited by
the former Charge d'Affaires, ECON and USAID five weeks ago,
are still overwhelmed by the flooding. This first emergency
produced one death and an estimated $600 million in damage in
the seven most severely affected counties: Arad, Bihor,
Caras-Severin, Hunedoara, Mehedinti, Suceava and Timis. OFDA
($50,000) and USAID/Romania ($500,000) assistance targeted
the hardest hit counties of Timis and Arad.

3) During July 1-4, 2005, heavy rains struck fourteen
counties in the southern part of Romania: Arad, Arges,
Bistrita-Nasaud, Constanta, Dolj, Giurgiu, Gorj, Hunedoara,
Olt, Prahova, Teleorman, Tulcea, Valcea and Vrancea. The
floods resulted in six deaths, and damages are still being
calculated. Following the chief of mission's disaster
declaration on July 5(reftel B),OFDA approved a second
$50,000 in humanitarian assistance and relief supplies to Olt
County, the hardest hit.

4) Heavy rains in Moldavia in the eastern part of the country
from July 9 through the present have generated serious
flooding in 32 counties: Alba, Arad, Arges, Bacau, Bihor,
Bistrita-Nasaud, Braila, Brasov, Calarasi, Cluj, Constanta,
Covasna, Dolj, Galati, Giurgiu, Gorj, Harghati, Hunedoara,
Ialomita, Mehedinti, Neamt, Olt, Prahova, Salaj, Sibiu,
Suceava, Teleorman, Tulcea, Valcea and Vrancea. To date, 23
people have died and early estimates of damages amount to
$1.2 billion. The most recent floods have brought the total
number of dead to 30 and total flood damage to around $2
billion. With more rain on the way, flooding will continue
to cause humanitarian disasters throughout the summer.
Already, 450,000 hectares of agricultural land, representing
nearly five percent of the total, have been affected,
amounting to damages of 130 to 140 million Euro.

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RAINS UNRELENTING
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5) The latest statistics on the currently affected counties
are:

-- Alba County: 42 localities affected, 415 houses damaged or
destroyed, 1,528 ha of agricultural land inundated, 343
people evacuated, 1 dead;

-- Bacau County: 33 localities affected, 6,134 houses damaged
or destroyed, 4,448 ha of agricultural land inundated, 1,360
people evacuated, 3 dead;
-- Braila: 3 localities affected and 500 houses damaged or
destroyed;
-- Galati: 18 localities affected, 1,622 houses damaged or
destroyed, 8,642 ha of agricultural land inundated, 5,286
people evacuated, 2 dead;
-- Mehedinti: 20 localities affected, 340 houses damaged or
destroyed, 2,660 ha of agricultural land inundated;
-- Suceava: 12 localities affected, 39 houses damaged or
destroyed, 388 ha of agricultural land inundated, 1 person
missing.
-- Teleorman: 19 localities affected, 820 houses damaged or
destroyed, 2 dead;
-- Vrancea: 41 localities affected, 1,798 houses damaged or
destroyed, 2,395 ha of agricultural land inundated, 1 person
missing, 12 deceased.

Most of the affected areas are rural with an older and poor
population. Forty percent of the rural population is over
the age of fifty and thirty-eight percent of the rural
population lives below the poverty line on less than $1 a
day. The local authorities are not prepared to respond to
the flood disaster and have very little equipment necessary
to assist the affected population.

6) The scope of the disaster is placing great pressure on the
GOR to loosen its IMF-imposed budgetary constraints. The GOR
already plans to allocate $85.8 million for all affected
counties, with an additional $15 million in a special reserve
fund as necessary. Additionally, $336.6 million will be
allocated to rebuild infrastructure and public buildings
destroyed by flooding. This amount includes a pledge to
affected farmers of $57.2 per ha. All families of deceased
will receive $1,009 per family in assistance.

7) Other donors are also responding. The UNDP has pledged
$130,000 in financial assistance to the affected areas to
purchase 14 motorboats. They are expected to offer another
$100,000 in the near future. The European Commission has
agreed to reprogram some existing funds for the redevelopment
of infrastructure affected by the floods. According to the
GOR, Hungary, Poland, Switzerland, Israel and Canada have
also pledged assistance. Neither has the private sector
remained silent, with the American Chamber of Commerce
spearheading an assistance drive among its members.

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THE EMBASSY RESPONSE
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8) USAID/OFDA has already targeted humanitarian assistance
and relief supplies to victims of the first two floods in
Timis and Olt Counties in the amount of $100,000. In
addition USAID Romania is providing $500,000 in micro-lending
assistance in Timis and Arad Counties. However, Embassy
Bucharest believes the most recent wave of floods in the
eastern regions necessitates a new response. As the timing
of the latest disaster will make it impossible to re-seed
affected cropland, relief requirements may continue into the
winter. Romania is likely to experience more flooding over
the course of the summer, and Embassy Bucharest is
considering ways to re-allocate our resources to respond to
the pressing need (septel to follow).
TAPLIN