GAZA UPDATE - NOV 21

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 002098

SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
GOLDBERGER/HOLMSTROM/LENTZ; PRM FOR PRM/ANE; NSC FOR
PASCUAL; PLEASE PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN

E.O. 12958: DECL: 11/21/2013
TAGS: EAID ECON EFIN KWBG PGOV PHUM PTER IS
SUBJECT: GAZA UPDATE - NOV 21

REF: JERUSALEM 2050

Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d)


1. (C) Summary. Gaza commercial crossings remained closed
November 20-21. Erez pedestrian crossing was open to certain
medical cases and international NGO employees. The power
plant has been shut down since November 13 due to a lack of
industrial fuel. Most Gaza households have 8-16 hours/day of
power, while hospitals rely on backup generators. Gaza banks
have "record low" reserves of cash ahead of the December
salary payments, according to the Bank of Palestine. On
November 20, UNRWA stopped its cash assistance programs in
Gaza due to a lack of liquidity in the banking system. End
summary.

Crossings closed November 20-21
--------------


2. (C) UN OCHA contacts in Gaza confirm that goods crossings
remain closed November 20-21, including Kerem Shalom, Sufa,
and Nahal Oz fuel transfer station. Erez pedestrian crossing
was open November 20-21 for certain international NGO
employees and medical cases. Since November 4, the GOI has
allowed a total of 33 truckloads of humanitarian packages and
commercial food shipments and a limited amount of power plant
fuel to enter Gaza.

Power plant down
--------------


3. (SBU) The Gaza power plant has been shut down since
November 13 due to a lack of industrial fuel. Gaza contacts
told Econoff on November 20 that most homes in Gaza have
power 8-16 hours/day, and that less than 10 percent of
households have access to emergency power generators.
Blackouts remain most severe in Gaza City.

Hospitals rely on emergency generators
--------------


4. (C) UN contacts say that hospitals use backup generators
during the frequent blackouts. They noted that diesel fuel
for these generators is limited, however. Our water and
sanitation contacts said on November 20 that nearly half of
all water and sewage pumps are no longer operational, due to
the lack of power and diesel fuel. OCHA contacts told
Econoff that the amount of food available in Gaza is very
limited. Families have stored food over the last few months,
yet are now "dipping into those emergency food reserves,"
according to a OCHA representative.

Rockets fired toward Israel November 20-21
--------------


5. (SBU) Palestinian militants fired three Qassam rockets
toward Sderot late November 20, and one toward Ashkelon early
November 21. None caused injuries or damage, according to
press. International organizations report that militants
fired four mortars toward IDF positions near the defunct
Kissufim crossing early November 21, and two of these landed
in Israel, without causing any injuries or damage. There was
minimal activity on Gaza's northern boundary with Israel
early November 21. At 1145 local, the Kissufim area was
quiet, without any observable IDF activity or Palestinian
militant fire evident.

Gaza cash shortage continues
--------------


6. (C) Salaries will be paid on December 4, in advance of
Eid al-Adha on December 8. Bank of Palestine reports a
"record low" of USD six million and NIS six million (plus NIS
eight million in damaged bills) remaining in its Gaza
branches. Even with salaries being paid, lower than usual
levels of re-deposits are exacerbating the liquidity problem.
Banking contacts attribute this phenomenon to Gaza residents
and merchants losing trust in the banking sector. Having not
received a response from the GOI to its last request to
transfer NIS into Gaza, PMA Governor Jihad al-Wazir told
ConGen Treasury Attache that he is not inclined to submit a
similar request this month.


7. (U) On November 20, a lack of cash forced UNRWA to halt
cash assistance to 98,000 Palestinians in Gaza who qualify as
"special hardship cases." (UNRWA requires NIS 270,000 per

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day, five days a week, to provide this assistance.)
WALLES