Identifier
Created
Classification
Origin
09BEIRUT385
2009-04-02 14:10:00
UNCLASSIFIED
Embassy Beirut
Cable title:  

LEBANON: UNRWA DIRECTOR--WE ARE RUNNING OUT OF CASH

Tags:  EAID PREF PREL PTER KPAL LE 
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RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHIK RUEHKUK RUEHLZ RUEHROV RUEHSR
DE RUEHLB #0385/01 0921410
ZNR UUUUU ZZH
R 021410Z APR 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 4579
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHTV/AMEMBASSY TEL AVIV 1382
RUEHJM/AMCONSUL JERUSALEM 4588
RHEHNSC/WHITE HOUSE WASHDC
RUCNDT/USMISSION USUN NEW YORK 3627
RHMFISS/USCENTCOM SPECIAL HANDLING MACDILL AFB FL
RHEHAAA/NSC WASHDC
UNCLAS SECTION 01 OF 03 BEIRUT 000385 

SIPDIS

DEPT FOR NEA/FO, NEA/ELA
DEPT FOR PRM/FO, PRM/ANE
ALSO FOR IO ACTING A/S WARLICK
P FOR DRUSSELL AND RRANGASWAMY
JERUSALEM FOR REFCOORD CKAPLAN
INL FOR A/S JOHNSON
USUN FOR WOLFF/GERMAIN/SCHEDLBAUER
NSC FOR MCDERMOTT AND SHAPIRO
PRM FOR ACTING A/S WITTEN
ALSO FOR PRM BROOKS-RUBIN AND RAMGOOLIE

E.O. 12958: N/A
TAGS: EAID PREF PREL PTER KPAL LE
SUBJECT: LEBANON: UNRWA DIRECTOR--WE ARE RUNNING OUT OF CASH

REF: JERUSALEM 378

SUMMARY
--------

UNCLAS SECTION 01 OF 03 BEIRUT 000385

SIPDIS

DEPT FOR NEA/FO, NEA/ELA
DEPT FOR PRM/FO, PRM/ANE
ALSO FOR IO ACTING A/S WARLICK
P FOR DRUSSELL AND RRANGASWAMY
JERUSALEM FOR REFCOORD CKAPLAN
INL FOR A/S JOHNSON
USUN FOR WOLFF/GERMAIN/SCHEDLBAUER
NSC FOR MCDERMOTT AND SHAPIRO
PRM FOR ACTING A/S WITTEN
ALSO FOR PRM BROOKS-RUBIN AND RAMGOOLIE

E.O. 12958: N/A
TAGS: EAID PREF PREL PTER KPAL LE
SUBJECT: LEBANON: UNRWA DIRECTOR--WE ARE RUNNING OUT OF CASH

REF: JERUSALEM 378

SUMMARY
--------------


1. (SBU) In a March 27 meeting with international donors,
United Nations Relief and Works Agency for Palestinian
Refugees in the Near East (UNRWA) Lebanon Director Salvatore
Lombardo stressed the dire financial situation that UNRWA
faces. Regarding Nahr al-Barid reconstruction, he said the
land expropriation process and the Lebanese Armed Forces'
(LAF) treatment of Nahr al-Barid visitors had improved. The
GOL's adoption of UNRWA's "Master Plan" for reconstruction
was proceeding on track. However, Lombardo said the
requirement that UNRWA obtain construction permits could
delay reconstruction efforts. Lombardo termed the
assassination of PLO Deputy Representative to Lebanon, Kamal
Medhat a "huge loss" for the Palestinian people in Lebanon.
End Summary.

UNRWA BUDGET SHORTFALL
THE WORST EVER
--------------


2. (SBU) In a March 27 meeting for international donors
attended by the Ambassador, the United Nations Relief and
Works Agency for Palestinian Refugees in the Near East
(UNRWA) Lebanon Director, Salvatore Lombardo, said UNRWA
faces the worst budget shortfall in its history. Lombardo
attended UNRWA's Extraordinary Session of the Advisory
Committee (Ad-Com) in Amman, Jordan on February 17 and said
UNRWA faces a budget shortfall of $52 million in 2009, and
$88 million in 2010 (reftel). The deficit for 2010 is the
worst ever and puts UNRWA in a difficult situation where it
may have to cut services for Palestinian refugees in Lebanon
fairly soon if additional funding is not received, according
to Lombardo. For example, Lombardo hinted that UNRWA may
have to cut teachers' salaries while asking them to work
double shifts and adding to the number of students they have
in their classrooms. Lombardo proposed working with UNRWA,s
international donors to see what cuts can be made to the
budget, so as to not effect major initiatives funded by

donors.

LAND EXPROPRIATION PROCESS
MOVES TO NEXT LEVEL
--------------


3. (SBU) Lombardo noted that the Lebanese cabinet had
resolved the outstanding issue of how the GOL notifies
property owners that land expropriation will occur in a way
that will allow expropriation to move ahead quickly. (The
Nahr al-Barid refugee camp resides on land still owned by
private Lebanese citizens. Under a recently approved cabinet
decree, the GOL decided to expropriate the 32 land on which
the camp sits.) The measure will allow expropriation, and
the commencement of construction, to proceed faster than it
would have otherwise.


4. (SBU) Lombardo said that Oman had transferred $7 million
to the GOL,s Ministry of Finance to pay for the land
expropriations (a total of $9.6 million is needed). This
amount pays for the expropriation of enough plots for UNRWA
to begin construction on "Packages 1 and 2", the UNRWA
compound directly outside the camp, and UNRWA run schools.
(Note: UNRWA divided Nahr al-Barid camp reconstruction into
"packages." Package 1, which includes 120 buildings for 399
family shelters, and Package 2, includes 330 buildings for
1,029 families. Package 1 will also include the
infrastructure for both Package 1 and 2 as well as the
off-site infrastructure for the entire camp, such as the
water supply system and waste water connections. End Note.)



BEIRUT 00000385 002 OF 003



5. (SBU) Regarding the "new camp," (an adjacent area to the
Nahr al-Barid camp that houses a number of Palestinian
refugees) Lombardo said some of the homes had not been fully
destroyed. Therefore, UNRWA could start repairing many of
the standing buildings which would mean families could begin
to return. He added that Greece (which just donated $1
million Euros) and France will fund water sanitation projects
in the new camp, and Germany and Italy plan to initiate
infrastructure projects as well.

FINAL ISSUES HOLDING UP
ADOPTION OF MASTER PLAN
--------------


6. (SBU) The other remaining issue is that UNRWA still needs
to attain construction permits to begin reconstruction.
Lombardo wants the GOL to waive this requirement for UNRWA.
However, GOL Chief Technical Advisor for Nahr al-Barid
reconstruction Dr. Sateh Arnaout stated that UNRWA will have
to obtain the construction permits, as waiving this
requirement would require parliament to amend the law.
However, Lombardo feels that the waiver is needed, and said
PM Siniora's help will be needed to solve this issue.
Arnaout said the GOL will most likely approve UNRWA's Master
Plan at its April 6 cabinet meeting. Once it's approved,
UNRWA can begin to apply for construction permits to begin
reconstruction, Arnaout added.


7. (SBU) (Note: Subsequently, in a April 1 phone
conversation, Dr. Arnaout said the GOL recently decided to
allow UNRWA to construct balconies on some of the buildings
within the camp. The Lebanese Armed Forces (LAF) initially
had opposed this plan on security grounds. This was one of
two issues holding up the GOL's adoption of the UNRWA
developed Master plan. End note)

MORE ACCESS
TO THE CAMP
--------------


8. (SBU) Lombardo said the LAF will give refugee friends and
relatives living outside Nahr al-Barid, as well as NGO
employees, a six-month pass to enter the camp, as opposed to
the two-month passes previously given to visitors. The LAF
also plans to open five or six more access points to enter
the camp and increase the number of lanes to accommodate more
drivers. The LAF will also conduct random car searches as
opposed to systematic ones, to decrease checkpoint delays.
Finally, Lombardo said that LAF Commander General Jean
Kahwagi promised that LAF soldiers atcheckpoints will be
more polite to residents and visitors entering and exiting
the camp.

UPDATEON DONOR
CONTRIBUTIONS
--------------


9. (SBU) Overall costs for Nahr al-Barid reconstruction are
estimated to be around $323.4 million, according to Lombardo.
Less than 20 percent of that has been pledged. UNRWA has
directly received $32.3 million (of the $42 million pledged
so far) towards the reconstruction, and will receive
additional funding of around $10 million from the World
Bank-administered Multi-Donor Trust Fund (MDTF.) So far,
according to Arnaout, Spain has donated $7.9 million to the
MDTF, while Norway gave $1.42 million and Finland donated
$130,000 Lombardo added that UNRWA wants to invite China to
join the MDTF. In addition, there are outstanding
unconfirmed pledges of $10.1 million. This leaves a funding
shortfall of around $270 million for NBC Reconstruction.
With the $32 million received so far, UNRWA plans to begin
construction on &Packages 1 and 2.8


10. (SBU) Regarding the Relief and Recovery, UNRWA has

BEIRUT 00000385 003 OF 003


received nearly $8.9 million (out of $42.7 million requested)
and $4.9 million of pledges for related projects. The
European Commission (EC) guaranteed funds for the rental
subsidies to 3,275 families and food parcels to 3,100
families that will last through December 2009. This amounts
to roughly $1.5 million every three months, according to
Lombardo. UNRWA has not received funding to cover
hospitalization costs for Nahr al-Barid refugees, Lombardo
said. He also noted that the United Arab Emirates Red
Crescent Society recently donated $1 million to UNRWA to
construct a further 149 temporary shelter units for displaced
Nahr al-Barid camp families.


11. (SBU) Lombardo said there were no updates regarding the
missing pledges from the Gulf states. He noted that UNRWA's
Commissioner-General Karen AbuZayd met with Gulf leaders in
Sharm el-Sheikh, and that most of them confirmed that their
interest in making a donation. (Note: AbuZayd will travel
to Lebanon on April 15-16. End Note.) Lombardo said he felt
something would happen soon, but that UNRWA would not "rock
the boat" by making a big fuss with those potential donors.


DEATH OF PLO DEPUTY
A HUGE LOSS
--------------


12. (SBU) Lombardo said the recent assassination of PLO
Deputy Representative to Lebanon Kamal Medhat was a "huge
loss" for the Palestinian people. The GOL launched an
investigation into the assassination, and a PLO security team
from the West Bank arrived to Beirut to help GOL officials
with the investigation, he added. The message from the GOL
and PLO Representative to Lebanon Abbas Zaki calling for
restraint were positive, Lombardo noted. All Palestinian
factions had attended Kamal,s funeral, he said.

SISON