Identifier
Created
Classification
Origin
05TELAVIV2647
2005-04-28 12:26:00
CONFIDENTIAL
Embassy Tel Aviv
Cable title:  

TIME TO RESTART GAZA WATER PROJECTS?

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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 002647 

SIPDIS

E.O. 12958: DECL: 04/27/2015
TAGS: ECON SENV ASEC KWBG IS GAZA DISENGAGEMENT HUMANITARIAN AID
SUBJECT: TIME TO RESTART GAZA WATER PROJECTS?


Classified By: Ambassador Daniel C. Kurtzer for Reasons 1.4 (b.d)

C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 002647

SIPDIS

E.O. 12958: DECL: 04/27/2015
TAGS: ECON SENV ASEC KWBG IS GAZA DISENGAGEMENT HUMANITARIAN AID
SUBJECT: TIME TO RESTART GAZA WATER PROJECTS?


Classified By: Ambassador Daniel C. Kurtzer for Reasons 1.4 (b.d)


1. (U) This joint message from Embassy Tel Aviv and ConGen
Jerusalem is an action message; please see paragraph 12.

--------------
Summary and Comment
--------------


2. (C) Following the October 2003 roadside bombing that
claimed the lives of three USG personnel in Gaza, we
discontinued travel to Gaza by all personnel under chief of
mission authority and suspended two large USAID-funded water
projects in Gaza valued at over $120 million. We now believe
some positive developments on security, as well as
the need to demonstrate support and strengthen PA President
Mahmud Abbas before upcoming PA legislative elections
planned for July, warrant rethinking the suspension of the
water projects. At the same time, we need to maintain
maximum pressure on the PA to follow through on the Gaza
bombing investigation, and ensure that any modification to
our stance on the projects does not signal a weakening in our
firm stance on the killings. Accordingly, we propose a
phased approach to restarting the projects. End summary and
comment.

--------------
Background on the Killings and the Decision
--------------


3. (C) In response to the October 2003 terrorist bombing
that claimed the lives of three USG American personnel in
Gaza, the USG decided to prohibit entry into the Gaza Strip
by all personnel under chief of mission authority. The
deterioration of security in Gaza also led us to suspend two
large-scale USAID-funded water projects that
would have required USG or AmCit contract personnel to enter
Gaza to monitor progress. Other USAID projects that did not
require the presence in Gaza of USG or Amcit contract
personnel have continued.

--------------
The Projects
--------------


4. (C) Each of the water projects is worth approximately USD
60 million. The desalination plant will have the
capacity to produce 20 million cubic meters of potable,
desalinated water -- enough to fulfill the drinking needs
of up to 2/3 of the Gazan population. The north-south water

pipeline, which is designed to allow better
allocation of water supplies throughout the length of the
Gaza Strip, would deliver desalinated water, as well as
water from other sources. This ability to better allocate
water supplied would greatly help relieve the pressure on
Gaza's aquifer, which is already suffering from extensive
salinization. The benefits for the larger Gazan economy
include the creation of hundreds of construction jobs during
the next two to three years.

--------------
Where We Are Now
--------------


5. (C) The USG has stressed to the PA that lack of progress
on the Gaza investigation is a major issue in our
relations. The Secretary focused on it during her February
visit, as has virtually every codel and senior USG
visitor. That lack of progress notwithstanding, PA officials
have urged us to reconsider suspension of the
water projects, because of their humanitarian impact.
President Abbas made a personal commitment to the Secretary
during her visit to follow up on the Gaza investigation.
Embassy and ConGenOffs have since met with security
officials tasked by Abbas to follow up on the case, but those
contacts have yielded no progress to date. Meanwhile, the PA
has yet to establish its full authority in Gaza.


6. (C) At the same time, there has been significant movement
on cooperation in a number of areas between the
Israelis and the Palestinians that augur well for the future.
On the security front, the period of calm,
although shaky, remains in effect. The GOI and PA are
preparing in the next two weeks to convene committees to
discuss the coordination of Israel's disengagement from Gaza
and the northern West Bank. During trilateral water
talks this month, the parties took initial steps to start
dialogue on Israeli settlement water infrastructure assets
in Gaza that would be transferred during disengagement and on
post-disengagement Gaza water supply and infrastructure
issues. These steps, which included the drafting of an
agenda and agreement to develop a water-related work plan by
mid-May, were taken with the explicit support of GOI and PA
leadership.

--------------
Reasons to Restart: Show Support for
Abbas and Post-disengagement Gaza Economy
--------------

7. (C) The most compelling argument for restarting the water
projects is to show publicly visible support for a
successful post-disengagement Gaza economy. The slow pace of
PA security reform and the chaotic security situation in
Gaza have undermined Gazans, belief that disengagement truly
offers them the opportunity for a new start. Hamas
has leveraged this sense of hopelessness to reap significant
political benefits through its delivery of
social services that compare favorably in the Gazan public
mind with the lower-quality services provided by an
ineffectual PA administration, widely viewed in Gaza as
riddled with corruption. With the July 17 parliamentary
elections fast approaching, it is clear that the PA badly
needs to deliver some concrete benefits to the people of
Gaza. The USAID projects' tangible investment in Gaza's
infrastructure will be a visible sign to the people that
the Israeli withdrawal offers future benefits and economic
hope.

-------------- --------------
Potential Pitfalls: Letting the PA "Off the Hook"
-------------- --------------


8. (C) There are strong arguments against restarting the
water pipeline project. In spite of intense USG efforts to
convince the PA to bring the perpetrators of the murder of
our colleagues to justice, there has been no progress to
date in this effort. Restarting water projects now
inherently reduces the USG's leverage over the PA to
resolve the case, and could also increase the danger to other
USG personnel in the future. Although the pipeline
can be constructed without direct USG oversight, such
oversight will eventually be necessary to oversee
construction of associated pumping stations necessary to make
the pipeline fully functional. In a March meeting, a
Palestinian Preventive Security Organization representative
told LegAtt and RSO that he believed USG personnel would not
be safe in Gaza until the murderers of the DynaCorps
personnel were brought to justice. As it is, the overall
security situation in Gaza remains highly volatile, and
President Abbas and Interior Minister Nasir Yusif have not
yet been able to consolidate their control over the security
forces, much less over those elements in Gaza who may have
been responsible for the attack.

--------------
Recommendation on Way Forward
--------------


9. (C) In spite of the valid concerns relating to restarting
the water projects, we believe there is a way to move
forward that can answer these concerns. If we decide to
restart work on the USAID projects, implementation should
be designed to meet the twin goals of quick progress while
maintaining leverage on the Gaza investigation. USAID
could restart the pipeline project -- the initial stages of
which can be implemented without American direct-hires or
American citizen contract personnel needing to do
on-the-ground oversight -- while holding the desalination
plant project in abeyance. As the pipeline contract award to
an American firm was merely suspended, USAID could quickly
restart it, breaking ground and putting people to work by the
end of June. Once it starts, pipeline construction could
lead to the employment of hundreds of local Gazan workers
through Gazan companies.


10. (C) While the desalination plant will provide a
much-needed independent potable water source for
Palestinians, we propose to hold off on its construction
until there is follow-through on the Gaza investigation.
In addition, we note that its construction, unlike that of
the north-south water carrier, will require AmCit personnel
oversight presence from the start. This, in turn, will
require a much-improved overall security climate in Gaza.


11. (C) We will also need to devise a carefully balanced
public diplomacy approach that highlights American generosity
and helps Mahmoud Abbas along with a private approach that
takes a firm look at the need for investigation progress
before any other project is contemplated.


12. (C) Action Request. Posts request Washington
concurrence to restart immediately construction of the
north-south water carrier.

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