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 JERUSALEM 00002098 002 OF 002 day, five days a week, to provide this assistance.) WALLES