Final Report Damage Assessment and Needs Identification in the Gaza Strip

EuropeAid Final Report Damage Assessment and Needs Identification in the Gaza Strip March 2009 Submitted by: I

Acknowledgements This report has been produced by EUNIDA, with France Cooperation Internationale as the leading implementing agency, for the EuropeAid Cooperation Office and has benefited from input and contributions from the Palestinian Authority and its ministries, especially the Ministry of Planning, relevant municipal and utility authorities and representatives of the EU Member States. Special thanks are due to the staff of UNDP based in the Gaza Strip for their assistance and support. The Team is grateful to the continuous support of ECTAO and the EC Occupied Palestinian Territory Desk, EuropeAid Cooperation Office, and in particular Virginia Villar Arribas for her time and dedication in the field supporting the mission. Disclaimer: This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of EUNIDA and can in no way be taken to reflect the views of the European Union. The report was written by a team of eight experts supplied by EUNIDA (Crown Agents, FIIAPP, GTZ and FCI) comprising: Patrick Auffret (Team Leader), Wessam Almoamer, Isabel Camacho, Robert D Cruz, Mo een Rajab, Wa el Safi, Amal Tarazi and Paul Wolstenholme. Important support was provided by Ahmed Alfara, Amjad Jadara and Mohammed Mishmish.

List of Acronyms ACAD Arab Centre for Agricultural Development ACF Action against Hunger-Spain BDS Business Development Services CAP Consolidated Appeal Process CBOs Community based organizations CHF Cooperative Housing Foundation CMWU Coastal and Municipalities Water Utility EC European Commission ECTAO European Commission Technical Assistance Office EOD Explosive Ordnance Disposal EQA Environment Quality Authority ERW Explosive Remnants of War ESSP III Third Emergency Services Support Programme EU European Union EUNIDA European Network of Implementing Development Agencies FCI France Coopération Internationale FIDIC International Federation of Consulting Engineers GEDCO Gaza Electricity Distribution Company Limited GERRNA Gaza Early Recovery and Reconstruction Needs Assessment GERRP Gaza Early Recovery and Reconstruction Plan GIE Gaza Industrial Estate GoJ Government of Japan GTP Graduate Training Programme GTZ German Agency for Technical Cooperation Ha Hectare HCF Health Care Facilities IDF Israeli Defence Forces IMG International Management Group INGOs International NGOs JICA Japanese International Cooperation Agency JRC Joint Research Centre JSP Job Support Programme KfW Kreditanstalt für Wiederaufbau (German government-owned development bank) MA AN MA AN Development centre MDLF Municipal Development and Lending Fund MoA Ministry of Agriculture MOEHE Ministry of Education and Higher Education MOH Ministry of Health MoLG Ministry of Local Government MoP Ministry of Planning MoPW&H Ministry of Public Works & Housing MW Mega watt

NGO OCHA PA PalTEL Group PARC PBA PCCG PENRA PFI PHG PIEDCO PITA PSCC PWA SMEs SW SWMC s TAM UAWC UNCT UNDP UN-HABITAT UNICEF UNMAS UNRWA UPVC USAID UXB UXO WB WFP WWTP Non-Governmental Organisation United Nations Office for Coordination of Humanitarian Affairs Palestinian Authority Palestinian Telecommunications Group Palestinian Agricultural Relief Committees Palestinian Businessmen Association Palestinian Chamber of Commerce, Industry and Agriculture for Gaza Governorates Palestine Energy and Natural Resources Authority Palestinian Federation of Industries Palestinian Hydrology Group Palestinian Industrial Estate Development Company Palestinian IT Association Private Sector Coordination Council Palestinian Water Authority Small and Medium Enterprises Solid Waste Solid Waste Management Councils Technical Assessment Mission Union of Agricultural Work Committees United Nations Country Team United Nations Development Programme United Nations HABITAT United Nations Children s Fund United Nations Mine Action Service United Nation Relief and Works Agency Unplasticised Poly Vinyl Chloride United States Agency for International Development Unexploded Bomb Unexploded Ordnance World Bank World Food Programme Waste Water Treatment Plant

Table of Contents Acknowledgements... ii Acronyms... iii Table of Contents... v List of Tables... vii List of Figures... viii ExECuTivE SummAry...x i. introduction... 1 1. Background... 2 a. EU Palestinian Authority relations... 2 b. International response to the conflict... 3 c. EC response mechanism... 4 d. Socio-economic background... 5 2. methodology... 7 a. Phase 1: Data-collection methodology... 7 b. Phase 2: Damage assessment methodology... 7 c. Phase 3: Needs assessment and programme identification methodology... 9 ii. damage ASSESSmEnT... 11 1. damage analysis by sector... 12 a. Rubble removal and unexploded ordnance... 14 b. Public building... 17 c. Energy... 21 d. Water, wastewater and solid waste... 25 e. Transport... 30 f. Agriculture... 34 g. Private sector... 39 h. Telecommunications... 44 i. Housing... 47 2. Comparison with the estimates presented by the gerrp... 51 3. Socio-economic impact of damage... 54 4. impact on EC & Eu member States projects... 56 V

iii. identification of needs... 61 1. overview of the programmes... 62 2. Proposed implementation mechanism... 63 3. overview of the programmes by sector... 63 a. Rubble removal... 63 b. Public buildings... 63 c. Energy... 64 d. Water, wastewater and solid waste... 64 e. Transport... 64 f. Agriculture... 65 g. Private sector... 66 h. Programmes overview from the socio-economic perspective... 68 5. List of programmes... 68 6. impact of proposed programmes on the socio-economic conditions... 74 7. Conclusions... 75 Annex A : List of Contacts... 78 Annex B : Programme Fiches by Sector... 82 Annex C : Cd of Annexes... 83 List of Annexes... 83 VI Final Report Damage Assessment and Needs Identification in the Gaza Strip

List of Tables Table (1): ECHO emergency support and global plan amounts (in )... 4 Table (2): Basic information of Gaza s demographics... 5 Table (3): Difference between EUNIDA estimated damage and GERRP reported damage... 12 Table (4): Estimated damage - Rubble removal and UXO clearance... 14 Table (5): Estimated damage Public buildings... 17 Table (6): Estimated damage Energy... 21 Table (7): Estimated damage Water, wastewater and solid waste... 25 Table (8): Estimated damage Transport... 30 Table (9): Estimated damage Agriculture... 34 Table (10): Estimated damage Private sector... 39 Table (11): Estimated damage Telecommunications... 44 Table (12): Estimated damage Housing... 47 Table (13): Damage costs of EC & EU Member States projects... 58 Table (14): Overview of identified programmes... 62 Table (15): Summary of identified programmes per sector... 69 Table (16): Average daily wage for labourer in Gaza... 74 VII

List of Figures Figure (1): Real GDP per capita (1999 & 2008)...6 Figure (2): Youth unemployment percentage (1999 & 2008)...6 Figure (3): Poverty rate (1999 & 2008)...6 Figure (4): Damage verification methodology...8 Figure (5): The percentage of estimated damage by sector...13 Figure (6): Location of damage - Rubble removal and UXO clearance...14 Figure (7): Destroyed house at East Jabalya...16 Figure (8): Rubble crushing and storage area near Khan Younis...16 Figure (9): Location of damage Public buildings...17 Figure (10): Skhneen low basic school for boys, Beit Hanoun, Gaza North...20 Figure (11): Location of damage Energy...21 Figure (12): Damaged transformer in GEDCO storage yard...23 Figure (13): Damaged GEDCO vehicle...24 Figure (14): Temporary repairs, Jabalya...24 Figure (15): Location of damage Water, wastewater and solid waste...25 Figure (16): Allocation of damage in Water, wastewater and solid waste sub sectors / Gaza Strip governorates (numbers in thousand )...27 Figure (17): Complete damage of Namar water well in Jabalya...29 Figure (18): Solid waste accumulation at entrance of Beit Hanoun...29 Figure (19): Location of damage Transport...30 Figure (20): Clearance of a damaged road, North Gaza (Courtesy of UNDP)...33 Figure (21): Location of damage Agriculture...34 Figure (22): East Jabalya - Livestock & poultry farms...37 Figure (23): Beit Lahia Horticulture significant damage...37 Figure (24): North Gaza Total damaged green houses...38 Figure (25): Location of damage Private sector...39 Figure (26): Allocation of private sector damage...41 VIII Final Report Damage Assessment and Needs Identification in the Gaza Strip

Figure (27): Amount of industrial sub-sector damage in millions of...41 Figure (28): Decrease in monthly income per household from year 2000 till now...42 Figure (29): North eastern Gaza Abu Aida cement factory (Construction industry)...43 Figure (30): Eastern Gaza Taha Daloul and Brothers Company (Metal industry)...43 Figure (31): Location of damage Telecommunications...44 Figure (32): Destroyed JAWWAL 30m tower in East Gaza city...46 Figure (33): Destroyed PalTEL main switch in East Jabalya...46 Figure (34): Location of damage Housing...47 Figure (35): Totally destroyed house (6 housing units) in East Jabalya...50 Figure (36): Partially damaged house in Tahoun (2 housing units)...50 Figure (37): Socio-economic impact of damage household needs...55 Figure (38): Percentage of needs amounts per sector...62 Figure (39): Frame work of private sector programmes...67 Figure (40): Cost to create each man-day of work by Sector...74 IX

Executive Summary Background The Gaza Strip is one of the most densely populated territories in the world, with some 1.5 million Palestinians living in an area of 40km by 10km. More than 1 million are UN-registered refugees, with the United Nations Relief and Works Agency (UNRWA) administering all refugee-related issues including housing, health and education, while the remaining half million are formally under the responsibility of the Palestinian Authority (PA). Since June 2007 Hamas has controlled the Gaza Strip, resulting in Israel imposing even tighter restrictions on the access of people and goods into the territory, allowing only limited quantities of basic humanitarian supplies to enter. For this reason, the economic and social situation in the Gaza Strip was already extremely fragile before the Israeli attack that began on 27 December 2008 and lasted until 18 January 2009. According to UN sources 1, 1,440 Gazans have been killed and about 5,380 wounded while more than 100,000 have been displaced. The conflict has aggravated an already difficult socio-economic situation: the unemployment rate has climbed from 29.7% in December 2008 to an estimated 49.1% after the conflict. Healthcare facilities, already under pressure before, were severely affected during the conflict. Education was halted with 164 students and 12 teachers killed and 165 public school facilities seriously damaged. Over 90% of the population needs to receive food support from UN agencies. The lack of access to most basic services further worsened the daily life of the people in Gaza. Palestinian Authority and international response As a first response to the critical situation after the conflict, a rapid assessment of the most urgent humanitarian needs was provided under the Flash Appeal launched by the UN in February 2009, which estimated these costs at around $613 million ( 479 million). At the time of writing, $234 million has been funded, with more than $370 million still outstanding. In order to offer a strategy for mid-term intervention, the PA, together with UN Agencies, the European Commission, the World Bank, civil society and the private sector put together an Early Recovery and Reconstruction Plan for Gaza (GERRP) with an estimated cost of $2.8 billion ($1.3 billion for early recovery and reconstruction and $1.5 billion for budget support). This plan is in line with the Palestinian Reform and Development Plan (PRDP). It aims at consolidating donor responses to the Gaza crisis by providing a comprehensive plan and a series of preferred financial mechanisms for intervention. After the conflict the Joint Research Centre (JRC) completed a rapid damage assessment, which was released on 26 January, analysing pre- and post-conflict optical satellite imagery. ECHO committed 3 million as a first emergency humanitarian support, and is currently readapting half of this year s 52 million Global Plan, which will be directed towards Gaza. The EC also participated in the Gaza Early Recovery and Reconstruction Needs Assessment (GERRNA, the basis of the GERRP) since its inception through the provision of experts and launched an EU-led mission through EUNIDA with the aim of contributing to the reconstruction process of the Gaza Strip by undertaking an assessment of the damage in key areas and by identifying programmes for possible funding by the EC, EU Members States and other donors. 1 "Humanitarian overview, Gaza Strip", OCHA, March 2009 X Final Report Damage Assessment and Needs Identification in the Gaza Strip

The mission objectives The mission was tasked to: First of all, conduct a damage assessment in key sectors including: housing, public infrastructure, energy, water and sanitation, transport, public buildings and the private sector, including agriculture and telecommunications 2. Moreover, the mission was requested to assess the damage sustained by projects financed by EU Member States and the EC. Secondly, based on the above-mentioned assessment, identify the main needs for the population in Gaza and provide concrete proposals for action, which could be financed by the EC, EU Member States or other donors. Mission stages The mission was divided into 3 stages: (1) contact & data collection, (2) verification & evaluation of damage and (3) assessment of needs & identification of programmes. It was based in Gaza, with 3 days between the last two phases spent in Jerusalem. After initial meetings with EuropeAid in Brussels, the EC Technical Assistance Office (ECTAO), PA and other stakeholders in Jerusalem and Ramallah, the mission went to Gaza for 2 weeks to carry out the task of assessing the damage. On completion of this stage, the findings were presented to both ECTAO and the PA, prior to the mission returning to Gaza for 8 additional days. In this second stage, the mission identified programmes for EC and EU Member States funding. Finally, the mission spent the last 3 days in Jerusalem drafting the final report and presented initial findings to ECTAO and to EU Member States representatives in East Jerusalem. During the entire mission, the experts worked in close collaboration with PA ministries, public utilities, as well as with UN organisations (UNDP, UNRWA, FAO, and other relevant UN Agencies), private sector organisations, banking representatives and NGOs. Findings - damage assessment and verification Data on damage was collected from a variety of sources and key stakeholders, including the information already gathered through the GERRNA (Gaza Early Recovery and Reconstruction Needs Assessment) initiated by UNDP and the PA, with the support of the EC, the World Bank as well as the private sector as civil society representatives. This assessment was the basis of the GERRP (Gaza Early Recovery and Reconstruction Plan), which was presented by the PA in Sharm El Sheik on 2 March 2009. To verify GERRP damage estimates, consultations were made with key stakeholders. These were followed by field visits, analyses and comparisons of available information. Any differences between the GERRP and the mission estimates were then closely investigated. The following basic assumptions have been used in the verification of damage: The damage estimates included in this report are, as far as they can be isolated, only related to the most recent conflict which took place from 27 December 2008 until 18 January 2009. The estimation of reconstruction costs has been based on construction costs prior to the closure with recent inflation costs taken into account to develop a reasonable estimate agreed with PA and UNDP. As for agriculture, West Bank prices were used. 2 For the sake of clarity, agriculture and telecommunications have been analysed separately from the rest of the private sector subcomponents. XI

It is nevertheless important to note that the effect of the blockade imposed by Israel since June 2007 has been devastating for all sectors due to the lack of maintenance, spare parts and equipment. It caused a severe deterioration in all areas even prior to the latest conflict. For this reason, the needs identification and programme proposals take into account these needs in order to help the population regain minimum living standards. The total damage estimated by the mission for all sectors covered amounts to 514.3 million ($659.3 million) compared to $891.8 million for the same sectors in the GERRP. The table below details the differences in each sector and provides some justification for them. Comparison with GERRP Sector Estimated damage million Estimated damage $us million (A) gerrp reported damage $us million (B) difference $us million (B-A) % increase Justification Rubble removal and UXO/UXB clearance 4.70 6.0 6.0 0.0 0% The UXO component is low and rubble removal is high but overall estimate is similar to the GERRP one Public buildings 36.35 46.5 71.0 24.5 53% The breakdown of sub-sector is not the same in GERRP and in this mission. Projects to enhance quality of health and education have been added in GERRP Energy 8.13 10.5 10.5 0.0 0% Water, waste water and solid waste 5.20 6.7 6.7 0.0 0% Transport 22.48 28.8 115.9 87.1 302% Agriculture 98.10 125.6 180.7 55.1 44% Private sector 108.70 140.0 140.0 0.0 0% Telecommunications 3.20 4.1 13.1 9.0 220% Housing 227.40 291.1 347.9 56.8 20% GERRP figures include rehabilitation of whole roads not only patch repairs of the concretely damaged parts as considered by this mission Assessment initiated by UNDP is not completed The GERRP includes some items which are not included in the mission estimate (i.e. Ministry of Agriculture losses or indirect costs) Slight differences occur in sub-sectors damage estimates. The assessment initiated by UNDP is not complete The GERRP estimates include some building development cost at the main switch. There is some double accounting The GERRP cost estimate for partial damage is based on a provisional lump sum of $10,000 per unit. Total 514.26 $659.3 $891.8 $232.5 35% XII Final Report Damage Assessment and Needs Identification in the Gaza Strip

Impact on EC and EU Member States Projects The total estimated cost of damage to EC and EU Member States projects relating to the recent conflict is 12.35 3 million. From 2000 onwards, the total cost of damages to EC and EU Member States funded projects is estimated at 56.35 million. The extent of damages reported by the EC and EU Member States was not as high as might have been expected bearing in mind the scale of the conflict, while the nature of the damage was consistent with the general damage trends observed throughout the Gaza Strip across all sectors. Projects most affected were agriculture, education and health facilities, roads, water and waste water, as well as additional damage to the Gaza International Airport. Specific needs of the population are in water, waste water and agriculture, to reduce health risks and to increase food security. The extent of the damage reported by the EC and EU Member States is not as high as it might have been expected bearing in mind the scale of the conflict. The main reason for this is that, due to the situation in Gaza, in particular the Israeli access restrictions, both the EC and Member States had kept infrastructure investment in Gaza at relatively low levels for a number of years prior to the latest incursion. Moreover, the estimation provided is based on information made available by EU Member States, which has not been systematically received. The consistency and level of detail received was highly variable, which made the verification of reported damage quite difficult. Therefore, the damage estimate might be underestimated and should be considered indicative. Findings programme identification In the second part of the mission, the experts developed key programme proposals for donor support funding. These programmes cover the damages sustained during the latest conflict but also address the most urgent needs resulting from previous conflict as well as from the blockade, which has been hampering the Gaza Strip and its population for several years. 3 Including the German figures provided after the end of the mission. XIII

Based on the damage assessment, the experts discussed the identified priorities with different stakeholders and came up with 41 programmes in 7 sectors. No programme has been proposed in housing as Arab states have provided preliminary indications that they might finance this sector. Also in telecommunications, no project has been proposed, as the concerned companies have not expressed any additional needs besides political support to get authorisation from Israel for access of their material. Programmes have been divided into two categories: Priority 1: Programmes expected to have a major socio-economic impact within six months of commencement. Priority 2: Programmes expected to have a major socio-economic impact only after six months from commencement. Sector Programmes Total ( ) Priority 1 ( ) Priority 2 ( ) gerrp ( ) Rubble removal 1 4.7 4.7 0.0 3.7 Public buildings 4 27.8 21.5 6.3 55.5 Energy 3 77.1 18.2 58.9 11.7 Water, wastewater & solid waste 10 78.0 58.0 20.0 27.1 Transport 9 157.1 55.7 101.4 93.0 Agriculture 7 54.5 54.5 0.0 207.8 Private sector 7 115.0 75.0 40.0 114.1 ToTAL 41 514.2 287.6 226.6 512.8 Programme estimates by sector General findings by sector include: Rubble removal Removal of the rubble is a critical initial activity that must be addressed as a high priority. Due to the high quantity of UXO and UXB items buried beneath the rubble, the act of rubble removal should be carried out simultaneously. XIV Final Report Damage Assessment and Needs Identification in the Gaza Strip

Private sector Significant support is required to regenerate the economy and create sustainable jobs. A total of 7 projects were identified, each with different components involving financial and technical assistance, as well as reconstruction and institutional capacity building. Agriculture Redevelopment of this important sector is essential in order to improve food security and create both short and long-term employment. Infrastructure Extensive rehabilitation is required to restore these sectors to acceptable operating levels. In the Water, wastewater and solid waste sectors, a number of strategic upgrading programmes have been included, such as the expansion of solid waste landfill site (the current landfills are full and some health related issues are at stake). In the Energy sector, a number of strategic programmes have been proposed to reduce/eliminate the energy deficit and provide power to revitalise agricultural and industrial businesses. In the Transport sector, strategic programmes have been included to allow the regional and municipal networks to recover operational standards in order to stimulate trade. It is important to note that the implementation of these programmes can only be carried out if the necessary political agreements are in place to allow access through borders for materials and equipment. Proposed Implementation Mechanism As much as possible, programme will be implemented through PEGASE, the EU mechanism of support to the Palestinians. Considering the specific political situation, where it is not possible to work through the relevant PA Ministry or Agency or to implement it directly through PEGASE, it could be envisaged that for each programme a Project Implementation Unit (PIU) which will be responsible for the procurement and financial management of each programme be established. Depending on the sector, this PIU could be a UN agency, a private business, banks, NGO s or even a financially independent department of a utility. This PIU would work closely with the PA and relevant stakeholders to which it would report on a regular basis. Conclusions 1. Damage estimation: the total damage estimated by the mission for all sectors covered amounts to 514.3 million ($659.3 million). 2. Damage by area: damage was mainly concentrated in the Governorates of North Gaza (37%), Gaza (27%) and Rafah (17%). 3. Damage by sector: the results of the EU-led mission show that the means of subsistence of Gazans were severely affected: 84% of the damage w inflicted on three key sectors: housing, agriculture and the private sector. These areas play a key role in food security, economic development and employment of the Palestinian population. Housing: 100,000 Palestinians were displaced, as a result of the damage to over 15,000 housing units, of which 4,036 were totally destroyed by the Israeli attack. 11,512 were partially destroyed. Damage in this sector has been concentrated in the Governorates of North Gaza (35%), Middle Gaza (21%) and Gaza City (19%). Agriculture: over 46% of the agricultural land has been damaged or became inaccessible as a result of the latest conflict. 16% (1,986Ha) of this land was severely damaged (including bulldozing of land, irrigation networks and demolition of green houses, crops, orchards and livestock shelters). Moreover, as Israel extended the Buffer Zone within the Gaza borders, an additional 30% of the agricultural land has XV

become inaccessible for farmers. The socio-economic impact of this in terms of employment and food security cannot be undermined: almost 30% of the agricultural workers lost their jobs (11,600); prices are on the rise while salaries are decreasing. Private sector: more than 700 commercial, industrial and service businesses sustained direct damage. 268 were totally damaged. The industrial sector was the most affected, in particular the areas of construction, food processing and metal. Already seriously affected by the blockade, since 2007, 90% business closed, laying off 94% workers in the private sector. This obviously has a direct impact also on the banking sector. The recovery of this sector is essential as it plays a vital role in the economic development of the Gaza strip, including employment and now also, reconstruction. The mission analysed other sectors which were also seriously affected. Public Buildings, Water, Wastewater & Solid Waste, Energy, Transport and Telecommunications are crucial for a complete and long term reconstruction of the social and economic system in Gaza. Public buildings: the latest conflict has brought about a further deterioration of basic services like education, health and security and consequently, a severe reduction in the quality of life of the population. Public services had been already functioning below acceptable standards prior to the conflict, due to the lack of resources and maintenance cause by the blockade. During the latest incursion, more than one third of all the public buildings were affected, including those providing education (245 kindergartens, schools, colleges, universities), health care (23 hospitals and clinics) and municipal (48 buildings) services. Half of the students were affected by the damage to education facilities and one third of the Gaza population suffered from the disruption of health services. Energy: the electricity distribution system in seven large areas of the Gaza Strip was targeted during the conflict. Supply was restored quickly through temporary works but these require permanent repairs to ensure safety and efficiency. Gas and fuel oil supplies were largely unaffected but remain subject to strict import controls. Transport: the road infrastructure in some northern municipalities (Jabalya, Izbet Abed Rabo and Al Montar) was heavily targeted during the conflict and requires extensive reconstruction. Other roads have suffered severely from a lack of maintenance during blockades. The ports were largely unaffected while the international airport was again targeted despite its closure in 2001. Water, wastewater and solid waste: the water and wastewater infrastructure has been heavily damaged in the latest conflict especially in the areas that witnessed ground military operations in North Gaza and Gaza City. 25 000m³ of raw sewage and 45,000 of sewage are daily discharged to the sea, creating pollution and an increased risk to public health. About 25,000 tonnes of waste which was accumulated in some transfer stations is waiting to be transferred to the landfills. While damage to solid waste facilities has not been as high as for water and waste water, its impact in public health and environment remains significant. Around 1 million Gazans have been denied access to water and sewage services during conflict, and 300 000 Gazans did not have access to solid waste collection services. Telecommunications: damage to telecommunications network was systematic, causing maximum disruption to both the local government and the community in general. Over 10,000 landline subscribers and 330,000 mobile subscribers were affected by the disruption of services. 4. Damage to EC and EU projects: The extent of such damage is limited ( 12.35M in the latest conflict) in relation to the total damage during this conflict due to the situation in Gaza and in particular the Israeli access restrictions, which led the EC and EU Member States to keep small infrastructure investment in Gaza at low levels during the last years. The recent conflict aggravated an already severe socio-economic crisis. 5. Since the takeover of Hamas in June and the consequent Israeli tightening of restrictions of access of people and goods, all sectors in the Gaza strip had been seriously weakened. Half of the active population is unemployed; 80% is dependant on aid; 90% of businesses have closed; public health needs and risks increased while health services decreased as the facilities were damaged and in lack of supplies. Gaza is facing a major environmental crisis due to the severe deterioration of water and sanitation services, disruption of XVI Final Report Damage Assessment and Needs Identification in the Gaza Strip

electricity and the need for rubble removal. The lack of access to basic services further worsened the daily life of Gazans and the population has lost a large degree of confidence in the future. The blockade continues today, impeding economic recovery or reconstruction and denying the population the needed access to basic services and acceptable living standards. Access is a precondition for any recovery activity in the Gaza Strip. 6. While the assessment of damage focused only at the damage resulting from the latest conflict, the identification of needs covers the most urgent requirements resulting also from the access restrictions and the consequent deterioration of the sectors. The experts proposed 41 programmes in 7 sectors for a total amount of 514.2 million. It is recommended that priority is given as follows: a) Short term: - Rubble removal is a priority as reconstruction cannot start if the rubble is not cleared. This operation should take place together with the clearance of UXOs, for the sake of safety. - Private sector as it is the key to economic recovery and job creation; - Agriculture to reduce the risk of food insecurity; - Water, wastewater, and solid waste as there are a number of critical health related issues and a looming environmental crisis. - Housing is one the basic needs of the population, although Arab States have shown interest in financing this sector entirely. b) Medium term: - Public buildings, particularly schools, health care facilities, and buildings providing social services. c) For the longer term, infrastructure rehabilitation will be essential for economic development: - Energy, as there is no economic recovery without access to energy, for both the population and the private sector; - Roads, to increase access to social services and improve movement of persons and goods. Programme implementation: 7. As much as possible, programmes will be implemented through PEGASE, either directly, or in cooperation with international organisations or other institutions. XVII

Gaza, General Map XVIII Final Report Damage Assessment and Needs Identification in the Gaza Strip

EuropeAid I. Introduction

1. Background EUNIDA, with the support of the European Commission, carried out a mission in Gaza, to contribute to the future reconstruction of Gaza by undertaking a damage assessment in co-operation with the Palestinian Authority (PA). The mission also liaised with other international organisations present in the area, in particular UN organisations and the World Bank. The mission comprised 8 experts, including 4 Palestinian nationals and was deployed in Gaza on 18 February 2009. It was scheduled to last 30 days and was organized into 2 phases. During the first phase, the experts carried out an assessment of damages in several key areas. In phase 2, the mission identified areas where EC and EU Member States assistance could most effectively contribute to the reconstruction process of the territory. The experts, working closely with the European Commission Technical Assistance Office (ECTAO), the PA and the donor community, identified projects for donor support, using so far as possible, existing mechanisms, and in particular, PEGASE the EU mechanism for support to the Palestinians. The Gaza Strip is one of the most densely populated territories in the world, with some 1.5 million Palestinians living in an area 40km by 10km. More than 1 million people are UN-registered refugees, with the United Nations Relief and Works Agency (UNRWA) administering all refugee-related issues including housing, health and education, while the remaining are formally under the responsibility of PA. Since June 2007, Hamas has been in control of the territory, resulting in Israel imposing even tighter restrictions on the access of people and goods into Gaza, allowing only the most basic humanitarian supplies to enter. For this reason, the economic and social situation in the Gaza Strip was already extremely fragile prior to the Israeli attack that began on 27 December 2008 and lasted until 18 January 2009. According to UN sources 4 1,440 Gazans have been killed and 5,380 wounded while more than 100,000 have been displaced. According to the Palestinian Central Bureau of Statistics (PCBS), the conflict has aggravated an already severe socio-economic crisis: unemployment rate has climbed from 29.7% in December 2008 to over 49% after the conflict. Health care facilities, which were already over-stretched prior to the conflict, were severely affected. Education was halted with 164 students and 12 teachers killed and several schools seriously damaged. The lack of access to basic services worsened further the daily life of the people in Gaza. a. EU Palestinian Authority relations The EU is strongly committed to supporting the Palestinian Authority s reform and development priorities and has been working with it to build up the institutions of a viable democratic and contiguous, sovereign Palestinian State, founded on peace and prosperity and living side by side in peace with Israel and its neighbours. The EU strives to create the conditions for developing a relationship that goes beyond assistance and co-operation, but also involves elements of economic integration and political cooperation. Dialogue with representatives of the Palestinian population has been based on the principles of the renunciation of violence, the recognition of the State of Israel and the respect for agreements previously signed between Israel and the Palestinian Liberation Organisation. The legal basis of the EU Palestinian relations is the Interim Association Agreement on Trade and Cooperation and the Action Plan of 2005 which established the agenda for economic and political co-operation with the EU. The Interim Association Agreement was signed with the PLO in 1997, but since the outbreak of the second Intifada in 2000, its implementation has proved to be difficult. European Community assistance to the Palestinians began in 1971, when the first contribution was made to the regular budget of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). The EC is the biggest donor of financial assistance to the Palestinian people. EU humanitarian assistance, support to refugees and development assistance has been essential for the Palestinian Authority to provide basic public services in times of crisis. Since February 2008, Community support has been channelled through PEGASE, which replaced the previous Temporary International Mechanism (TIM). 4 "Humanitarian overview, Gaza Strip", OCHA, March 2009 2 Final Report Damage Assessment and Needs Identification in the Gaza Strip

PEGASE is the EU mechanism to support the Palestinian people by providing direct financial support to the implementation of the Palestinian Reform and Development Plan (PRDP) for key budgetary priorities aimed at bringing stability, and socio-economic development to all Palestinians in the occupied territory. The four key priority axes of the new mechanism are: Governance (fiscal reform, rule of law, justice, accountability, security); Social affairs (social protection, health, education - including vocational education and training, employment schemes as well as the provision of basic supplies like fuel); Economic and private sector development (trade facilitation, small and medium enterprises guarantee and financing, business centres, quick impact projects, as well as payment of private sector arrears); Public Infrastructure Development (in the areas of water, environment, energy, basic infrastructure necessary to improve the daily life of the population as well as infrastructure that will enhance the business environment and offer employment). PEGASE is in addition a vital instrument for the mobilisation of international aid and international financing organisations and has been particularly successful in attracting funds from EU Member States. There is an agreement between EC and the PA to use PEGASE as much as possible to channel international funds to support the reconstruction and recovery of Gaza. b. International response to the conflict Phase 1: Humanitarian response and flash appeal ($613 million/ 480 million) Under the umbrella of the UN (OCHA), the Flash Appeal was launched in February 2009, addressing the immediate humanitarian needs, over a period of 9 months. As of today, $234 million have been funded, with more than $370 million to be financed. Phase 2: Gaza Early Recovery and Reconstruction Needs Assessment (GERRNA) ($1.3 billion/ 1 billion) Under the umbrella of the PA, the United Nations (UN), the World Bank (WB) and the European Commission (EC) carried out an Early Recovery and Reconstruction Needs Assessment (GERRNA), covering a period of 2 years. This extensive assessment, led by the UNDP, covered 5 sectors (social, infrastructure, economic, governance and natural resources & environment). Phase 3: Gaza Early Recovery and Reconstruction Plan (GERRP) ($2.8 billion/ 2.2 billion) The outcome of the GERRNA assessment was consolidated by the PA in what was called the Gaza Early Recovery and Reconstruction Plan (GERRP). This plan was presented at the Sharm El Sheik Conference on 2 March 2009. It includes an evaluation of the needs after the conflict and covers the same five sectors (social, infrastructure, economic, governance and natural resources & environment) including not only the evaluation of damage but also an assessment of mid- and long-term needs in line with the Palestinian Reform and Development Plan (PRDP). This document represents the co-ordinated response of the PA and its international and local partners for a total estimated expenditure of $2.8 billion. It proposes $1.5 billion for the current expenditure of the PA government over the next 2 years through budget support, in addition to the $1.3 billion Early Recovery Needs already mentioned in the GERRNA. Donor support will mainly be channelled through current donor mechanisms (such as PEGASE, WB Trust Fund, Arab and Islamic Development Funds). 3

Phase 4: Sharm El Sheik international conference on Gaza ($4.481 billion/ 3.51 billion) Senior officials and representatives from over 70 countries and 15 international organisations attended the conference organised by Egypt to support the reconstruction of Gaza, severely damaged by the latest conflict. They pledged a total of $4.481 billion, exceeding the Palestinian request reported in the GERRP ($2.8 billion). The following are some of the pledges: EC: 436 million ($566 million) US: $900 Million ($300 million will be channelled via the United Nations and other organisations, some $200 million will be provided to help cover the PA budget shortfalls and another $400 million dollars is offered to assist Palestinian economic and institutional reforms). The Gulf Cooperation Council (GCC): $1.65 billion. Saudi Arabia: $1 billion. Qatar: $250 million. Algeria: $100 million. c. EC response JRC Rapid Preliminary Damage Assessment Gaza Strip A rapid damage assessment was released on 26 January 2009, analysing Gaza images before and after the conflict using very high-resolution optical satellite imagery. ECHO The first emergency humanitarian support from the EC came from ECHO through the Flash Appeal, with 3 million committed in early January and currently being disbursed. Moreover, ECHO committed 3 million as a first emergency humanitarian support, and is currently readapting half of this year s 52 million Global Plan, which will be directed towards Gaza. It is planned to be allocated as follows: Table (1): ECHO emergency support and global plan amounts ( in ) Sector global Plan Financial decision 2009 ( ) Emergency decision 2009 ( ) Water & Sanitation 1,100,000 200,000 Food Aid/Security 14,261,000 2,000,000 Coordination 1,125,000 0 Shelters 0 550,000 Protection/Assistance 3,000,000 0 Cash for work 4,730,000 0 Psychological 1,715,000 0 Health/Nutrition 2,165,000 250,000 Total per decision: 28,096,000 3,000,000 overall Total: 31,096,000 4 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Participation in various damage assessments The EC participated in the GERRNA since its inception through the provision of experts who participated in the assessment process and also assisted in the identification of programmes. Moreover, the EC launched this EU-led mission in order to provide a comprehensive assessment in key areas (rubble removal and UXO/UXB clearance, public buildings, energy, water, wastewater & solid waste, transport, agriculture, private sector, telecommunications and housing) and by proposing programmes for EC and EU Member States and other donors intervention. d. Socio-economic background The recent conflict in Gaza has aggravated further an already severe socio-economic crisis. The conflict took place after a strict blockade on Gaza that lasted over 18 months and is still in place. By 2007, the Palestinian Gross Domestic Product (GDP) - estimated at around US $4.1 billion was more than eight percent below its 1999 level, taking into account a population growth of around 25% during that period. On a per capita basis, GDP was one third lower than in 1999. Although it began to recover during the second half of 2007, preliminary data from the Palestinian Central Bureau of Statistics (PCBS) points to further economic contraction during the first half of 2008. The isolation of markets, widespread unemployment, and an economic crisis continue to cause a serious decline in living standards. The Gaza Strip demography According to the PCBS (2008), the population of Gaza amounts to 1.5 million with a density of 4,069 inhabitants per square kilometre (among the highest in the world), with about 67% of the population in Gaza being refugees. Gaza s active population (15 65 years) is 49% of the total population. The population of Gaza is distributed over five governorates: 35% in Gaza, 19.5% in Khan Younis, 19% in North Gaza, 14.5% in the Middle area, and 12% in Rafah. The following table presents basic information of Gaza s demography in 2008 in comparison to the reference year (1999): Table (2): Basic information of Gaza s demographics no. indicator 1999 (reference year) 2008 (most recent data) 1 Population (in thousands of inhabitants) 1,087 1,465 4 Annual Population Growth Rate (%) 4.6 3.9 2 Population Density (Capita/ km 2 ) 3,019 4,069 3 Gender Distribution Rates (Base 1997 vs. 2007) Male Female 50.1 49.9 50.7 49.3 5 Percentage of population between 15 years and 65 years (GS&WB) 47.1 49.0 7 Percentage of Refugees - 67.7 8 Unemployment rate 15 years and over (%) 26.0 49.1 9 Poverty rate (%) (income below $3/day) 21.0 79.4 10 Dependency on Food Aid (%) 80.0 11 Average household size 6.9 6.5 12 Real GDP (million USD) for all Occupied Palestinian Territory 4,511.7 4,020.5 13 Real GDP per Capita (USD) for all Occupied Palestinian Territory 1,612.3 1,133.7 Sources: PCBS, OCHA, and PMA December 2008 and February, 2009 5

Economic situation GDP fell steadily in the Gaza Strip in the years prior to the recent conflict. The latest blockades started in 2006 and 2007 and had a significant negative impact on the Gaza Strip s economy. GDP in real terms is estimated to have fallen by 5% in 2006, 3% in 2007, and 2.7% in 2008. The economic situation was further weakened by the increased restrictions on movement and access, particularly across Gaza s borders. Manufacturers in Gaza rely, almost entirely, on imports for their raw materials. Until recently, exports to Israel and the West Bank accounted for about 76% of their furniture products, 90% of garments and 20% of food products. Trade restrictions have further reduced economic activity, transforming Gaza into an import dependent economy, driven primarily by public sector salaries and humanitarian assistance. Before the conflict and due to the continuous blockade on the Gaza Strip, most of the private sector activities were paralysed and the few remaining businesses were only partially functioning and barely surviving. The constraints on the amount and type of goods allowed through the borders as well as the total blockade of export operations, has resulted in most businesses closing down. Since 2007, around 90% of industrial businesses have been closed and 94% of workers have lost their jobs (33,000 workers). Employment and Poverty Figure (1): Real GDP per capita (1999 & 2008) Unemployment rose sharply during 2008. During the first half of the year, 42.3% of the labour force was out of work, increasing to 49.1% during the second semester. According to the latest available statistics, 79.4% of the Gaza Strip households subsist on less than the national poverty level of US$3 per day. The following figures compare some indicators between the reference year 1999 and end of 2008 (before the conflict): Figure (2): Youth unemployment percentage (1999 & 2008) Figure (3): Poverty rate (1999 & 2008) 6 Final Report Damage Assessment and Needs Identification in the Gaza Strip

2. Methodology The mission started its work with an introductory meeting with EuropeAid in Brussels before its departure to East Jerusalem. A meeting with ECTAO was followed by one with the PA s line ministries. The process was divided into three phases. In the first phase, the mission collected data from different sources, mainly through the Gaza Early Recovery and Reconstruction Needs Assessment (GERRNA). In the second phase, the mission undertook a verification exercise based on the data provided in the GERRNA, which included further consultations, analysis and assessments. In the third phase, the mission identified the most important needs and proposed concrete programmes for action. a. Phase 1: Data-collection methodology Data on damage was collected from a variety of sources and key stakeholders while the main source was the GERRNA, other sources were also used. a) GERRNA Under the umbrella of the Palestinian Authority (PA), the UN, WB and EC undertook the Gaza Early Recovery and Reconstruction Needs Assessment (GERRNA). This extensive assessment led by UNDP covered 5 sectors: social; infrastructure; economic; governance and natural resources & environment. UNDP deployed extensive teams of engineers and technicians to carry out the assessment based on site visits, questionnaires, building drawings, inventory lists, satellite imagery and municipal maps to assess the physical, technical and environmental damage. These teams co-ordinated with stakeholders, analysed and validated data and provided detailed cost estimates based on local market prices taken from recent contracts and the material prices of goods imported from Israel. GERRNA was the basis of the GERRP presented by the PA in Sharm-El-Sheik on 2 March 2009. b) Other sources The mission collected also data from other sources: The Municipal Development Lending Fund (MDLF) provided the mission with an assessment on municipal infrastructures. Local utilities in the water and energy sectors provided useful information. Regarding the private sector, the different professional organisations reported useful data. The Ministry of Agriculture (MOA), FAO and NGOs provided their own assessments for the agricultural sector. b. Phase 2: Damage assessment methodology The mission adopted a flexible methodology adapted to the nature of each sector/sub-sector. The following sectors were assessed: rubble removal & UXO/UXB clearance, public buildings, energy, water, wastewater and solid waste, transport, telecommunications, housing, agriculture and private sector. After the start of the mission, two additional experts were recruited locally to cover in detail the latter two areas. 7

The following general methodology was adopted by the mission to verify possible conflicting information in the GERRNA assessment: Data Collection Meet Stakeholders Field Visits Discussion, analysis & data collection Analysis and comparison with the GERRP Figure (4): Damage verification methodology Uncertainties associated with the verification process Some constraints have had an impact on the verification process: Dialogue with stakeholders: due to the sensitive political situation in Gaza, the mission was instructed to avoid contact with Hamas-appointed officials. Safety: some places were not accessible for damage verification, such as the buffer zone and some partially damaged buildings. Access: access restrictions prevented the verification/assessment of some areas. Data collection: the damage assessment by UNDP was still not completed in some sectors (notably in housing and private sector). The agriculture sector was even further behind, due to the complexity of this sector and the difficulty to access some areas (destroyed rural roads and the buffer zone). Pricing: most damage estimates include current costs of new reconstruction and equipment at this time, provided access of materials is granted 5. 5 2006 cost plus inflation for construction, West Gaza prices for agriculture. 8 Final Report Damage Assessment and Needs Identification in the Gaza Strip

c. Phase 3: Needs assessment and programme identification methodology In the third phase, the EUNIDA mission identified a number of programmes in each sector to repair the damage that resulted from the latest conflict, previous conflicts and lack of maintenance and spare parts due to the blockade. The following methodology was used for this purpose: Discussing priority interventions with key stakeholders. Conducting field visits to verify the needs and scope of these programmes. Verifying prices (including all implementation costs and contingencies) and requirements for technical assistance. Estimating the jobs created by each programme. Checking the current funding of programmes by donors. Determining the priority of each programme. Assumptions for implementation of projects: All proposed programmes include the following assumptions: The necessary political agreements will allow access through the border of necessary staff, materials and equipment; An adequate number of capable building contractors and material suppliers will be available at the time of implementation; Land required for facilities will be available and easily accessible. Risks associated with the implementation of the projects: In addition to the constraints already mentioned above, it is important to note that if all reconstruction projects were to start simultaneously, this would create a boom in demand that may result in inflated prices during execution. 9

EuropeAid II. Damage Assessment 11

1. Damage analysis by sector Damage within the Gaza Strip was mainly located in the Governorates of North Gaza (37%), Gaza City (27%) and Rafah (17%). Such damage was principally concentrated on agricultural land used as access routes by Israeli armoured vehicles, residential properties and public buidings. The industrial sector was also badly impacted through the systematic destruction of equipment, facilities, factories and machinery. Important damage was also sustained by the uttility networks of water, wastewater, roads and electricity, as well as the telecommunications networks. The total estimated damage for all covered sectors amounts to 514.3 million. The following table presents both the mission s damage estimate and GERRP reported damage by sector, in addition to the percentage of difference between the two estimates. A brief explanation regarding the difference between the two estimates is also provided. Table (3): Difference between EUNIDA estimated damage and GERRP reported damage Sector Estimated damage million Estimated damage $us million (A) gerrp reported damage $us million (B) difference $us million (B-A) % increase Justification Rubble removal and UXO/UXB clearance 4.70 6.0 6.0 0.0 0% The UXO component is low and rubble removal is high but the overall estimate is the same Public buildings 36.35 46.5 71.0 24.5 53% The breakdown of sub-sectors is not the same in GERRP and in this mission. Projects to enhance quality of health and education have been added in GERRP Energy 8.13 10.5 10.5 0.0 0% Water, waste water and solid waste 5.20 6.7 6.7 0.0 0% Transport 22.48 28.8 115.9 87.1 302% Agriculture 98.10 125.6 180.7 55.1 44% Private sector 108.70 140.0 140.0 0.0 0% Telecommunications 3.20 4.1 13.1 9.0 220% GERRP figures include rehabilitation of whole roads not only patch repairs as considered by this mission The assessment initiated by UNDP is not completed. The GERRP includes some items which are not included in the mission estimate (i.e. Ministry of Agriculture losses, indirect costs) Slight differences occur in sub-sector damage estimates. The assessment initiated by UNDP is not complete The GERRP estimates include some building development cost at the main switch. There is some double accounting Housing* 227.40 291.1 347.9 56.8 20% The GERRP cost estimate for partial damage is based on a provisional lump sum of $10,000 per unit. Total 514.26 $659.3 $891.8 $232.5 35% * Likely to be funded by other donors Note: Exchange rate applied: $1.28/ 12 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Figure (5): The percentage of estimated damage by sector It is important to note that the variations between the results of the mission and the GERRP results are mainly due to the different approach of the GERRP, which was more comprehensive and included medium and longer-term activities. It also included actions in coherence with the PRDP (Palestinian Reform and Development Plan) for the next two years. Moreover, the following are some general observations made by the mission: There were significant differences between the version of the GERRP released on 26 February and the supporting sector-based spreadsheets that were later provided by the PA. No explanation of these differences was made available. The GERRP damage assessment was not yet complete in some sectors. The verification process was still ongoing, which means that the reported damage estimates will probably change in the future. The breakdown of sectors and sub-sectors is not the same in GERRP and the EC mission (for example in the Public Building sector). The GERRP adopted a provisional lump sum for partially damaged housing of $10,000 per unit. This lumpsum was adopted just after the conflict, before a further detailed assessment was carried out, in order to provide some quick partial assissance to the displaced families. This was considered by the mission to be exceptionally high; a more realistic figure of around $4,000 would have been more appropriate. At the time of writing, the UNRWA detailed housing assessment was still in progress and therefore, total housing figures are likely to increase. 13

a. Rubble removal and unexploded ordnance Figure (6): Location of damage - Rubble removal and UXO clearance Table (4): Estimated damage - Rubble removal and UXO clearance Component Estimated damage gerrp reported damage 1 UXO and Rubble removal 4,678,750 4,678,750 Total 4,678,750 4,678,750 14 Final Report Damage Assessment and Needs Identification in the Gaza Strip

General information on the sector The military operation in Gaza comprised bombardment from land, sea and air, with incursions by Israeli Defence Forces (IDF). The bombardment resulted in extensive casualties and fatalities, the destruction of homes, livelihoods, infrastructure, commercial property and agricultural land. Explosive Remnants of War (ERW) and in particular Unexploded Ordnance (UXO) and unexploded bombs (UXB) contaminated this highly populated area, significantly reducing the safe places for civilians to flee to. Three days after the 18 January 2009 ceasefire, the United Nations Mine Action Service (UNMAS), in conjunction with the United Nations Development Fund (UNDP), the United Nations Children Fund (UNICEF) and the Office for Co-ordination of Humanitarian Affairs (OCHA), embarked on a technical assessment mission to Gaza, through the framework for Mine Action Planning and Rapid Response. This combined UN Agency mission established a co-ordination cell and provided what assistance it could to the affected population. This cell was composed of the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), the UN Country Team (UNCT) and other humanitarian organisations, with the objectives of facilitating the opening of humanitarian corridors and the delivery of humanitarian aid in line with the UN Security Council Resolution 1860 (2009). Rubble removal activities started spontaneously by individuals, businesses and institutions who dumped the rubble without authorisation along disused roads in the industrial areas and along the fishing port breakwater. No clear indications were provided by the municipalities regarding the selection of suitable dumpsites for rubble. A site had already been prepared in 2006 by UNDP to receive, crush and store recycled rubble, with an identified site to store recycled metal, wood and other material in a nearby location. To date, only 3 of the 4 Explosive Ordnance Disposal (EOD) teams have been deployed, and current activities are limited to verification and clearance of major arterial roads and key infrastructure, including schools. Israel has not allowed essential technical and personal safety equipment for the clearance operatives into the Gaza Strip, which severely limits the ability of the EOD teams to operate effectively. An information campaign was launched to advise the population in the affected areas about the risks of UXO/UXBs, including leaflets depicting photographs of UXOs and contact numbers. The act of rubble removal, which should be carried out together with UXO s clearance, is an essential precursor of the reconstruction of both residential and commercial buildings, while it is also important in order to reduce the health and safety risks to the population. Damage and reconstruction cost Rubble has been created as a consequence of the bombardment and demolition of buildings, through the use of bulk demolition charges. It is considered normal for approximately 10% of munitions not to explode, based on data from other conflicts worldwide, creating a high quantity of UXO and UXB items that will require to be cleared from the surrounding areas and especially from the rubble in order to make the entire area safe. The total volume of rubble to be removed is estimated at 600,000 Tonnes. Socio-economic impact Rubble and UXO/UXB s removal would provide a safer environment for the Gazan population. In addition health risks created from vermin will be reduced. Moreover, this would allow the reconstruction process to begin, should the access of materials be allowed by Israel. In the meanwhile, the completion of the UXO/ UXB risk assessment would allow low risk areas, including the areas that had been damaged by bulldozing or in remote locations. To be cleared, lowering the risk for the population until the appropriate technical equipment can be imported into Gaza. UNDP had estimated about 200,000 man-days of work for the entire rubble removal project, which equates to around 90,300 man-days for the proposed programme to be funded by EC. The work would be created as temporary employment from 6 to 9 months. 15

Figure (7): Destroyed house at East Jabalya Figure (8): Rubble crushing and storage area near Khan Younis 16 Final Report Damage Assessment and Needs Identification in the Gaza Strip

b. Public buildings Figure (9): Location of damage Public buildings Table (5): Estimated damage Public buildings Component Estimated damage gerrp reported damage 1 Education 15,500,000 31,500,000 2 Health 3,490,000 4,100,000 3 Public Institutions 17,360,000 19,860,000 Total 36,350,000 55,460,000 17

General information on the sector The Public Buildings sector assessed includes schools, clinics, hospitals, public institution buildings and public spaces. The education and health care systems have been decaying over the last years due to the blockade and lack of government funding through a shortage of supplies, equipment, spare parts and maintenance as well as staff turnover. Taken in conjunction with the ever-increasing numbers of the population served, the situation makes both sub-sectors vulnerable to further deterioration of a significant portion of the facilities. Education The Education sub-sector refers to both governmental and private institutions. The Ministry of Education and Higher Education (MOEHE) is in charge of all aspects of the public education system. The education system within the Gaza Strip caters for more than 50% of its population, which is under18 years of age. Around half of the schools are run by UNRWA and were therefore not taken into consideration by the mission. As the costs have been covered in their Flash Appeal the sector employs over 15,000 teachers in more than 500 public and private schools. The MOEHE assessed governmental schools and envisaged reconstruction with the declared intention of profiting from the opportunity of building back better as stated in the GERRP. Statistics provided by the MOEHE specifically related with school distribution are misleading and contradictory, consequently, it is difficult to verify this information when the baseline data is not consistent. Health The Health sub-sector includes 99 primary healthcare facilities and 19 hospitals administered by MOH, NGO s, UNRWA and private organisations. The sub-sector was under stress before the conflict due to the weakening of basic services as well as through previous damage to facilities, further reducing an already fragile system. Because of the restriction of movement in and out of Gaza, a number of medical treatment services and surgical operations are not available within the territory, with patients being referred to hospitals mainly in the West Bank, East Jerusalem or Egypt. Public institutions Public Institutions at local and governmental level are essential as they serve the core of the society at grassroots level delivering basic services, such as buildings approval and control, slaughtering of animals, local taxation and others. The destruction of more than 60 buildings and public spaces belonging to both institutional and political governance levels has jeopardised the socio-economic system, affecting the whole population in Gaza. Damage and Reconstruction Cost Education The education system has been severely affected with some 30% of the schools which sustained damage either in buildings, furniture or equipment, disrupting the education of around 150,000 students from a total of 440,000. Some 165 schools have been affected, with the range of damage sustained varying from total destruction of the building (8 schools) to minor yet significant damage to windows. Damage cost is estimated at 15.5 million. With respect to UNRWA education facilities, 36 schools were damaged as well as 46 school buildings, used as temporary shelter, which require refurbishment, affecting some 200,000 students. The amount required to restore the UNRWA education system is 13.7 million, which is not considered here as it has been included in the Gaza Flash Appeal. Health Most of the damage to primary healthcare clinics was located in the Governorates of North Gaza and Gaza. However, the largest component of reconstruction cost covered the severe damage to Al-Quds and Al-Wafa a Hospitals. In total 7 hospitals (58% of the total governmental hospitals at secondary healthcare 18 Final Report Damage Assessment and Needs Identification in the Gaza Strip

level) and 18 Clinics (38% at the primary healthcare level) sustained damage in the recent conflict, resulting in them functioning at reduced levels yet not closing entirely. In addition to the governmental health system, 7 UNRWA health installations (36%) were damaged, 3 of which were rendered inoperable. Public institutions This sub-sector includes governmental & municipal buildings and spaces, which sustained extensive damage. In addition, some public spaces that were not affected need to be allocated to other purposes due to the destruction of nearby municipal and other governance buildings. At the local government level, a total of 24 Municipality buildings, 13 municipal centres of various social purposes, 8 markets and slaughter houses and 13 parks, gardens and playgrounds have sustained severe damage, most of them being totally destroyed. Seven governmental buildings (ministry headquarters and parliament) have been totally destroyed, as well as most, if not all, internal security installations including police stations, detention centres and training facilities. This has had an impact on the security of the population through a reduction in the capability of the police to deal with routine criminal investigations as well as general policing of the community. In respect of safety, security and civil defence services, a total of 64 security facilities have been affected (58 totally damaged) together with 10 Civil Defence facilities (7 totally damaged), with the reconstruction cost being included in the GERRP at a cost of 32.25 million. This has not been included in the mission estimate as it cannot be verified due to lack of access to information and sites. It is important to note that the extent of damage to partially damaged buildings may be higher than that reported, once rubble removal allows access to the buildings for a complete inspection. Socio-economic Impact Education The socio-economic impact of the destruction sustained by this sector affects all strata of the community even though the financial cost is not as significant as for the other sectors. A return to normal life and routine for children, including school attendance is imperative as they are one of the more vulnerable groups in the community. The education sector has been so widely damaged that it requires immediate action, both in short- and long-term interventions. The psychological damage to the youth may persist and recovery cannot begin while the education sector is not fully functional, as it is a reminder of the recent events. Health In a post-conflict environment access to health care for the affected population is a matter of necessity, not just at the medical level but also at the psychological and psychiatric level. The shortage of medical staff and supplies represents a critical challenge for the future revitalisation of the health care system at hospitals and primary health care level. The population facing increased difficulty in accessing health care system could reach well beyond 500,000 people. The impact of the conflict on the health sector is fourfold: Physical damage to staff and to the health facilities and equipment, impacting on the service delivery of healthcare services. Increase in stress for the remaining healthcare workers. Lack of supplies of fuel, drugs and medicines. Increase of injured population. 19

Public institutions The destruction of so many municipal offices has resulted in an almost complete cessation of most of the basic social services provided at the local level to some 700,000 people, thus creating an impact on the community that ranges from increased health hazards to the disruption of routine social life. Figure (10): Skhneen low basic school for boys, Beit Hanoun, Gaza North 20 Final Report Damage Assessment and Needs Identification in the Gaza Strip

c. Energy Figure (11): Location of damage Energy Table (6): Estimated damage Energy Component Estimated damage gerrp reported damage 1 Electricity Distribution 8,135,000 8,135,000 2 Gas Supply 0 0 3 Fuel Supply 0 0 4 Firewood Supply 0 0 Total 8,135,000 8,135,000 21

General information on the sector This Energy Sector report includes information on the following sub-sectors: Electricity distribution. This is the responsibility of the Gaza Electricity Distribution Company Limited (GEDCO) which also has the obligation to recover revenues. Electricity demand in the Gaza Strip before the conflict was 244MW. Out of this, 121MW was supplied from Israel, 17MW from Egypt and 60MW from the Gaza Power Plant. This left a shortfall of 46MW or 19% of demand. Before the conflict, revenue recovery was only some 20% of consumption. It is likely that this will fall further as a result of the conflict. Electricity generation. The Gaza Power Plant is the only major generating facility in the Gaza Strip. It is managed as a privately owned company with fuel supplied through the Palestine Energy and Natural Resources Authority (PENRA). In the past year, under the PEGASE mechanism, the EC and EU Member States have provided 97 million to the PA to fund fuel supplies (96 million litres of fuel oil) for the Gaza Power Plant. Other funds have been provided through the ESSP III Programme (total amount granted from December 2007 to date, $10 million) to provide fuel for clinics and hospitals and other essential water supply and wastewater facilities. According to the GERRP report the PA has transferred 8.6 million ($11 million) for electricity repairs since the end of the conflict. The Gaza Power Plant was not damaged during this latest conflict. Gas supply. Virtually all gas for the Gaza Strip is imported through the Israeli border at Nahal Oz Terminal. Gas supplies remain subject to import controls, which results in a general shortage. The demand for gas is about 350 tonnes per day of which less than 80 tonnes are permitted across the border. This gas is prioritised for use in hospitals and bakeries with the balance being provided to hotels, restaurants and those either wealthy enough to afford the inflated price or fortunate enough to receive their ration through the queuing system in effect at public gas supply stations. This has greatest impact on low income and vulnerable households including health and nutrition aspects. However, as this is not a direct impact of the recent conflict it is not detailed further in this report. Fuel oil supply. The supply of fuel oils is subject to strict import controls on private companies, which result in a general shortage. This has a major impact on movement, trade, agriculture, manufacturing and domestic power generation. However, as it is not a direct impact of the recent conflict it is not detailed further in this report. Firewood Supply. Firewood remains an important source of fuel to low-income households and to others in times of blockade. This is collected by hand from scrubland from which no damage was reported during the latest conflict. Damage and reconstruction cost Damage to the electricity distribution network was concentrated in seven neighbourhoods in the Gaza Strip including: Al Atatra & Al Salateen in North Gaza Governorate; East Jabalya & Salah Eddin Street in North Governorate; Al Zaiton & Al Shejaia in Gaza Governorate; Mid-Gaza City and Tal Al Hawa in Gaza Governorate; Maghazi, Juhod Al Deek and Al Zahra in Middle Governorate; East Khan Younis in Khan Younis Governorate; East Rafah and the Philadelphia Corridor in Rafah Governorate. The damage to the electricity network affected some 420,000 people, mainly concentrated in the Gaza city Governorate (62% of the affected population). 22 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Damage on this sector consisted mainly in the destruction of medium- and low-voltage transformers, key pylons and cabling. The main stores of the Gaza Electricity Distribution Company (GEDCO) and their vehicles were also damaged. Supply was restored quickly through temporary works but these require permanent repairs to ensure safety and efficiency. The total amount required to restore and repair the electricity sector, from transformers to pylons and cabling, is 8,135,000. Socio-economic impact The loss of power to neighbourhoods during the conflict resulted in disruption of water supply because of a loss of pumping capacity, loss of domestic and street lighting at night and disruption to use of domestic appliances. The disruption of the water supply and wastewater disposal brings about a health hazard as residents may have resorted to contaminated sources for drinking. Elsewhere, land was contaminated by overflowing sewage. Other impacts would have been of a temporary nature as supply was restored to 95% of those dwellings within four weeks after the ceasefire declarations. It is important to note that, due to a shortage of spare parts and material repairs undertaken to the distribution system after the conflict were makeshift, increasing power loss within the systems and may result in a danger to the public. This may consequently cause injuries, reduce the reliability of supply and increase its cost in the future. Figure (12): Damaged transformer in GEDCO storage yard 23

Figure (13): Damaged GEDCO vehicle Figure (14): Temporary repairs, Jabalya 24 Final Report Damage Assessment and Needs Identification in the Gaza Strip

d. Water, wastewater and solid waste Figure (15): Location of damage Water, wastewater and solid waste Table (7): Estimated damage Water, wastewater and solid waste Component Estimated damage gerrp reported damage 1 Water 2,652,000 4,700,000 2 Wastewater 1,804,000 included in the previous line 3 Solid waste 730,000 510,000 Total 5,186,000 5,210,000 25

General information on sector The Ministry of Planning is responsible for planning and fundraising, while the Environmental Quality Authority (EQA) is responsible for licensing of sites, environmental monitoring and ensuring environmental protection. Water and wastewater The Coastal Municipalities Water Utility (CMWU) is the sole service provider for water and wastewater services throughout the Gaza Strip, including refugee camps. The CMWU is regulated by the Palestinian Water Authority (PWA) and funded by several donors including the World Bank (WB), the European Commission (EC), German Development Bank (KfW) and UNICEF. Since becoming fully operational in 2005, the CMWU has succeeded in increasing the number of households served with water to about 97% and wastewater to about 64%. In addition, CMWU has succeeded in reducing network losses from 60% to 35% by improving network efficiency. The average water usage per capita per day is 80 litres, which is about half of what the WHO recommends. The CMWU runs 150 wells producing variable water quality with a daily capacity of about 233,000 m 3. Due to the limited water resources in the Gaza Strip and the over extraction of ground water, salinity is continuously increasing and the service is intermittent for most of the areas. This has created an attractive environment for private desalination and distribution companies to provide secure potable water. Due to the blockade since June 2007, there is a severe shortage of spare parts and equipment, involving detailed negotiations through the World Bank and USAID, to ensure that essential spares can be imported through Israel. Exceptionally some essential spare parts have been allowed in World Bank and USAID projects after long negotiations with Israeli authorities. There are three waste water treatment plants (WWTP) in the Gaza Strip: Beit Lahia Plant which serves North Gaza Governorate with an average daily flow rate of 18,000m 3 ; Gaza Plant which serves Gaza City and the Beach Camp with an average daily flow rate of about 50,000 m 3 and Rafah waste water Plant which serves Rafah Governorate with an average daily flow rate of 12,000 m 3. The three WWTPs are overloaded and have limited treatment efficiency, ranging from 30-60%. About 7,000 m 3 of raw wastewater from the Middle Gaza Governorate is discharged directly to Wadi Gaza mixing with storm water, which then flows directly to the sea. A new plant funded by the World Bank, the EC, and the Swedish, Belgian and French governments is under construction to the east of Jabalya to replace the existing Beit Lahia Plant. Another central plant is planned to be constructed through funding from the German government, southeast of Wadi Gaza to serve both Gaza and the Middle Governorates. An additional plant funded by Japan will be constructed in Khan Younis Governorate. The rehabilitation and upgrading of the Rafah plant is ongoing, funded by the International Committee of the Red Cross, it is designed to cope with wastewater treatment for the coming 10 years. The two new plants in North Gaza and Khan Younis Governorates need some supplementary funds to complete their first phase. Solid waste The Ministry of Local Government (MoLG) is the main coordinating agency for solid waste management (SW) within the Palestinian Territory. Most of the day-to-day operations of the solid waste system are the responsibility of the municipalities and regional solid waste councils. The construction of the SW plants and facilities is conducted under the supervision of MoLG. In the refugee camps, solid waste collection and transport is carried out by UNRWA, using the three existing disposal sites in Gaza, Deir El Balah and Rafah. In 1995 a regional solid waste management council was established in the Governorates of Khan Younis & Deir El Balah, and in 2002 another council has been established in North Gaza Governorate. In both councils, municipalities have been grouped together into a single entity resulting in a significant improvement in service efficiency. Under normal conditions approximately 95% of the population of the Gaza Strip is serviced by a waste collection system, averaging about 1,300 tonnes daily being collected and disposed of at the official landfill/dumpsites. 26 Final Report Damage Assessment and Needs Identification in the Gaza Strip

The development of a solid waste management strategy for the Gaza Strip commenced in 2008 and is due for completion by the end of 2009, as current landfills are expected to be filled within the coming 1-2 years. Damage and reconstruction cost The three sub-sectors suffered different damage during the recent conflict as summarised below: Water and wastewater The water and wastewater infrastructure has been heavily damaged in the latest conflict especially in the areas that witnessed ground military operations in Gaza North such as Ezbet Abed Rabou, Attatra and in Gaza City districts of Al Zaytoon, Al Toufah and Tal Elhawa. In general, water facilities have sustained more damage than wastewater, with North Gaza Governorate having the highest damage followed by Gaza, Rafah, Middle Gaza and then Khan Younis Governorate, as shown below. Figure (16): Allocation of damage in Water, wastewater and solid waste sub sectors / Gaza Strip governorates (numbers in thousand ) The damage to water and wastewater facilities are: 11 wells were either partially damaged or totally destroyed including 2 in Beit Hanoun, 2 in Beit Lahia, 2 in Jabalya and 5 in Gaza. 1 water tank in Jabalya was completely damaged and 3 partially damaged in Johr Deek, Moghraga and Wadi Salqa. A total of 20,000m of steel and UPVC water pipes were damaged. 9 sewage pump stations sustained either partial direct or indirect damage including 1 in Beit Hanoun, 3 in Beit Lahia, and 5 in Gaza Governorate. A total of about 7,500m of steel, UPVC and asbestos sewage pipes were damaged. In addition, about 5,700 roof storage tanks were destroyed and about 3,000 were damaged. The cost of these tanks is not included in the damage shown below as it is covered under the housing sector. 27

Solid waste In general, the damage to solid waste facilities compared to water and wastewater was relatively low. Three service yards had significant damage, one collection vehicle was completely destroyed, many vehicles and bulldozers sustained partial damage (tyres, glass, lights, fuel tanks among others). In addition, many street refuse collection containers were completely destroyed or partially damaged. Some equipment at Gaza and Deir El Balah Landfills has been damaged in addition to access roads. As a result of damaged access roads to the three landfills during the last conflict, about 25,000 tonnes of waste accumulated in some transfer stations waiting to be transferred to the landfills. Socio-economic and environmental impact of water and wastewater damage During the incursion, about 1 million inhabitants were denied access to water supply and a significant portion to sewage services, increasing health risks. Currently more than 25,000m³ per day of raw sewage and about 45,000m³ of partially treated sewage is discharged to the sea, creating pollution and an increased health risk to the public. In addition, as fishing is limited to a distance of 5 km, the consumption of seafood also creates a further health risk. The spillage of fuel at some wastewater treatment plants as well as flooding of partially treated sewage into the surrounding agricultural areas of Gaza North and Gaza, has added to the health risk to the population in addition to the contamination of soil and severe pollution of ground water. The damage sustained has added a great burden on the CMWU which has been suffering from a shortage of spare parts due to the blockade and lack of financial resources due to the severe economic situation, as well as through reducing revenue income due to the destruction of industrial, commercial and agricultural sectors. At the operational level the loss of 11 of the 150 wells (about 7%) has had a significant impact on the total daily water capacity, resulting in an increased shortage of potable water especially during the summer time. Although the preliminary assessment indicates relatively low damage to solid waste facilities compared to other sectors, its impact on the public health and environment remains significant. The damage to equipment and facilities has increased the burden on the already exhausted municipality maintenance system, due to the shortage in spare parts, expired equipment and limited financial resources. During the 3 weeks of the incursion, about 300,000 people living in areas subject to direct military operations had no solid waste collection services while the remaining 1,200,000 people had an intermittent service of once or twice a week. As a result, people burned accumulated refuse in the streets or in collection containers, causing air pollution and severe damage to many of the containers. Moreover, access to the three main landfills/dumpsites was denied for weeks forcing the municipalities to pile the waste (about 25,000 tonnes) in temporary transfer stations polluting the environment, creating a public health risk and a nuisance to people in the neighbourhood. 28 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Figure (17): Complete damage of Namar water well in Jabalya Figure (18): Solid waste accumulation at entrance of Beit Hanoun 29

e. Transport Figure (19): Location of damage Transport Table (8): Estimated damage Transport Component Estimated damage gerrp reported damage 1 Roads & bridges 18,900,000 61,000,000 2 Street lighting 2,540,000 2,540,000 3 Ports 40,000 3,500,000 4 Airports 1,000,000 23,500,000 Total 22,480,000 90,540,000 30 Final Report Damage Assessment and Needs Identification in the Gaza Strip

General information on the sector This Transport Sector report includes information concerning the following sub-sectors: Roads & bridges Regional roads total 120km and are the responsibility of the PA Ministry of Public Works and Housing. Municipalities are responsible for roads within their boundaries whereas other roads outside municipal boundaries are the responsibility of the Ministry of Local Government. Due to the blockade, the lack of cement, asphalt, equipment and other materials had caused deterioration of the road network in all areas over several years prior to the conflict. Street lighting Street lighting is the responsibility of respective municipalities. Spare parts were available at times on the local market; however, previous blockades have caused general deterioration of systems over time. Ports Ports are the responsibility of the Palestinian Port Authority. The fishing port adjacent to Gaza City is the only sheltered port in the Gaza Strip. This is the fishing port adjacent to Gaza City. Elsewhere fishing boats are hauled onto the sandy beach. Gaza fishing port consists of two breakwaters (800m and 300m long) made up largely of building rubble but with some concrete jacks stabilising the surface. At the time of writing, the shorter breakwater was being widened with continuous and uncontrolled dumping of rubble. Rafah fishing port consists only of a mechanical workshop and a few small ancillary buildings. Airport Gaza International Airport is the responsibility of the Civil Aviation Authority. The only such facility in the territory, it functioned for three years before being heavily damaged in 2001 by the Israeli Air Force. Damage and reconstruction cost All sub-sectors suffered damage during the recent conflict. However, losses in the roads and bridges and street lighting sub-sectors had a far greater impact than those in the Ports and Airport sub-sectors. Damage to these first two sub-sectors was concentrated within certain heavily populated or industrial areas. Damages to the sub-sectors can be summarised as follows: Roads & bridges Road damage was concentrated in the municipalities of Al Atatra, Izbet Abed Rabo, the commercial area (Al Montar) at the east of Gaza City, and Rafah (adjacent to the Philadelphia Corridor). Localised damage occurred in other areas throughout the length of the Gaza Strip. The total cost of damage estimated by UNDP was 18.6 million ($23.8 million). However, GERRP reported a total damage cost of 61 million ($77.9 million) due to their guiding principle of building back better. UNDP unit costs for roads were found to be realistic, assuming access is allowed for imported cement, asphalt, base course material and equipment. Through sample field verifications the UNDP figure for the quantity of roads damaged has been confirmed. Regarding bridges, GERRP includes damage to three bridges which were totally destroyed according to their sources and gives an estimate of 5.1 million ($6.5 million) for their reconstruction. However, following field verification visits to all three bridges it was confirmed that no bridges had been destroyed. Instead, the following damage was noted: 31

The box culvert at Al Zahra, damaged during previous conflicts, and sustained further damage by bombing during this latest conflict. It remains stable and functional in the short-term but requires complete reconstruction estimated at 200,000. It is a 40m long, two-lane structure that provides a shortcut from northern Nuseirat to Gaza City. The bridge linking Beit Hanoon directly to Gaza City was damaged in previous conflicts. It has been repaired temporarily and is fully functional. A permanent repair is estimated at 100,000. Access to Gaza City is also possible via the main Salah Eddin Road. This would add one or two minutes to the journey time by car while pedestrians can cross using an old culvert beside the bridge. Street lighting MDLF reported extensive damage to street lighting systems in the Gaza ( 1.2 million) and Rafah Governorates ( 780,000). Damage in the other three governorates totalled around 560,000, which gives an overall total of approximately 2,540,000. However, it was seen from data collected independently from four municipalities that two of the municipalities had submitted lump sum estimates that could not be checked and the other two included unit prices that exceeded current market rates by between 30% and 200%. Ports The fishing port in Gaza City was reported to have sustained damage. However, on inspection it was found that no damage had been inflicted during this conflict. Instead, around ten fishing boats were reported to have suffered minor damage. It appeared that Rafah fishing port was reported to have suffered damage value at some 310,000 ($400,000). However, during mission visits, damage was sustained only to a small workshop, costs which the mission, estimated at 36,000. Airport Damage to the control tower (28m high) and ancillary buildings are estimated to be around 1,000,000. Information was gathered by UNDP but their figure of $30M includes job creation schemes to repair damage to the runway and other structures caused during previous conflicts. Socio-economic impact The socio-economic impact of damage to the transport sector comprises the following major components: Roads & bridges Concentrated damage to road networks in Al Atatra and Jabalya resulted in lack of safe access to local populations to their homes, lack of access for reconstruction, loss of income for local businesses and loss of water supply and wastewater services in a few locations where pipes had been severed. In the commercial/ industrial area of Al Montar, road damage was of little impact compared to the severe damage done to the businesses themselves. Generally, road access had been restored to all areas at the time of writing. As indicated earlier, no bridges were destroyed during the recent conflict. The socio-economic impact is considered minimal. Street lighting The lack of street lighting in certain municipal areas would reduce safe access at night for both pedestrians and vehicles. Ports The damage to the mechanical workshop at Rafah may cause disruption to the repair of marine engines, 32 Final Report Damage Assessment and Needs Identification in the Gaza Strip

which will have a direct impact on the livelihoods of some fishermen and hence reduce the total catch arriving at the port. Airport The airport has not been used since 2001 and rehabilitation projects cannot start without the necessary political agreements. Further damage inflicted during this conflict has therefore had minimal socio-economic impact. However, the lack of this important international link has profound consequences on the freedom of movement of Gazan civilians and businesses. Figure (20): Clearance of a damaged road, North Gaza (Courtesy of UNDP) 33

f. Agriculture Figure (21): Location of damage Agriculture Table (9): Estimated damage Agriculture Component Estimated damage gerrp reported damage 1 Horticulture and open field crops 52,000,000 66,000,000 2 Livestock & poultry farms 14,400,000 14,100,000 3 Agricultural infrastructure 23,900,000 60,800,000 4 Buffer Zone (1 km from the eastern border and 2 km from the northern border) 7,800,000 N/A Total 98,100,000 140,900,000 34 Final Report Damage Assessment and Needs Identification in the Gaza Strip

General information on the sector Gaza Strip has a total of 12,300 Ha of agricultural land with the capacity to produce 350,000 to 400,000 tonnes of agricultural products annually. One third of these products are crops for export (strawberry, carnation, sweet pepper and cherry tomato). The agriculture sector includes three main sub-sectors: horticulture & open field crops, livestock & poultry farms and agricultural infrastructure. It is worth mentioning that the buffer zone currently represents 30% of the agricultural land in the Gaza Strip, which is inaccessible due to Israeli restrictions on movement ranging 1 km from the eastern border and 2 km from the northern border. Before the conflict, the agricultural sector provided permanent and temporary jobs for more than 40,000 people in the Gaza Strip (representing 13% of the workforce) and provided food for a quarter of the population. Since the imposition of the comprehensive Israeli blockade, the export of agricultural products has been prevented. Seeds, fertilizers and other agricultural inputs have been prohibited to enter Gaza, which has led to a significant reduction of the agricultural sector s production capacity. Local farmers reported that their agricultural income had dropped by at least 40 percent since June 2007 due to the increased cost of production and raw materials. A number of organisations are directly involved in the agricultural sector within the Gaza Strip, including both local and international organisations. Five large local NGOs play a leading role, the Palestinian Agricultural Relief Committees (PARC), the Union of Agricultural Work Committees (UAWC), MA AN Development centre (MA AN), Arab Centre for Agricultural Development (ACAD) and Beit Hanoun Agricultural Association. Local NGOs are organised under the umbrella of the Palestinian NGO network (PNGO). The lack of capacity and resources within the Ministry of Agriculture means that it provides only limited services to the farming community consisting of little more than recording of agricultural assets reported by individual farmers and agro-businesses. Current funded programmes are limited to temporary job creation, assistance with the supply of material and low level technical support to low-income and women headed households, and support for income generation through market garden projects. Due to the continued border closure, these projects are not considered as being a long-term solution to the current problems within the agriculture sector. Damage and reconstruction cost An estimated 19,856 dunums (1,986 Ha) of agricultural land was affected in the Gaza Strip during the recent conflict, equating to 16% of agricultural land. Damage has been caused both by bulldozing of land and irrigation networks and by demolition of green houses, crops, orchards and livestock shelters. The verification of losses in the agriculture sector had still not been completed by MoA, PARC and UNDP, but based on the recent estimates the total cost of direct damage is 98.1 million, of which 90.3 million represents damage in the three main sub-sectors. Based on information submitted by farmers, collected by NGOs and consolidated by UNDP on behalf of the PA, estimated damage in the buffer zone equals 7.8 million, however access to this area was not safe and therefore verification of this figure was not possible. Horticulture and open field crop damage represent 58% of the total damage cost estimates in agriculture including damaged land and trees. Damage to agricultural infrastructure is second with 26% of the total. Livestock and poultry farms are third, representing 16% of the losses. Of the 1,986Ha of damaged agricultural land, 847Ha were used for crop production (27% used for field crops and 73% irrigated crops) and the remaining 1,139Ha were used for orchards, with 44% for olive production and 43% for citrus production. When added to the lack of safe access to the agricultural land in the Buffer Zone (30%), the total land unavailable for agricultural production is about 46%, or 5,658Ha. Coupled with the lack of required agricultural input materials, such as fertiliser, seeds and pest control chemicals, the actual production capacity does not equate to the potential 54% of available land for agricultural use, that is, a theoretical 190,000 to 215,000 tonnes of production capacity. The mission conducted visits to 6 sites in the North Gaza to review damage reported by farmers and evaluated by the respective data collection organisations. In these cases the data collection organisations 35

were Palestinian Agricultural Relief Committees (PARC) and Union of Agricultural Work Committees (UAWC). The visits concluded that the reported damage was consistent with the actual damage incurred. A site visit report, including photographs, is included in the Annex to this report. Although the data collection forms used by the two organisations differed, the data collected was relevant and complete as proven during the site visits. Subject to approval, it is believed that Sweden will re-allocate unexpended road infrastructure funds (about 0,4 million) to provide support to damaged farming operations and to support small scale job creation schemes within North Gaza. Socio-economic impact and related issues The overall deterioration in the sector s activities has undermined farmers abilities to secure income for their households and has limited their productive activities to an alarming level. Large-scale destruction incurred in the field of agriculture has had a considerable impact on food security. It is estimated that since 2001 more than a half of the agricultural production has been lost. Around 29% workers (11,600) in the agricultural sector have lost their jobs during the latest conflict, joining thousands of farmers already out of work due to the blockade. Moreover, the price of vegetables and white meat products has dramatically increased after the conflict resulting in increased food insecurity. For example; the price of chicken has increased by around 300% (from 1.4 to 4.2 per kilo). Degradation of productive capacity has included over-extraction of water from the aquifers leading to an increase in salinity of the water used for irrigation. This has a direct impact on the output quality of food produced as well as the types of food that can be produced with this water. In addition, without the required fertiliser and pest control chemicals, the yield of food per Ha reduces, as does the quality. As locally produced food becomes more expensive to produce and lower in quality compared to imported products, an increase in imported food products becomes inevitable, leading to an increase in unemployment and low-income families relying on humanitarian food assistance. Surface water run-off has resulted in increased erosion of the topsoil, leading to lower production quality and yields in addition to the impact of a lack of fertiliser. The increased erosion has also contributed to a reduction in the absorption of rainwater into the soil (and therefore the aquifer), as well as having a direct impact on the road storm-water pipe networks. These factors have all contributed over time to reduced food quality and quantity, which is having a direct impact on public health. Safe access to agricultural land for workers on a daily basis is essential, especially for irrigated cash cropping activities such as vegetables growing, chicken feeding or cattle breeding. Consequently, any such activity adjacent to or within the Buffer Zone is not appropriate. The Buffer Zone distance changes on a daily basis, depending on the IDF and discourages agricultural workers from working in these locations. This results in re-allocation of these areas for less intensive agricultural activities. For intensive agricultural activities accessible on a daily basis by workers, a shift to urban and suburban agricultural land would be safer and would facilitate sales at the local market. This may not be compatible with the requirement to maximise the use of the best quality land for vegetable and other cash crop production activities to support the local food supply demands. 36 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Figure (22): East Jabalya - Livestock & poultry farms. Figure (23): Beit Lahia Horticulture significant damage 37

Figure (24): North Gaza Total damaged green houses 38 Final Report Damage Assessment and Needs Identification in the Gaza Strip

g. Private sector Figure (25): Location of damage Private sector Table (10): Estimated damage Private sector Component Estimated damage gerrp reported damage 1 Commerce 19,460,000 54,203,000 2 Industry 65,788,000 48,633,000 3 Services 23,415,000 6,349,000 Total 108,663,000 109,185,000 39

General information on the sector The private sector enterprises include commercial, industrial and service industries employing around 150,000 people. The total number of private sector establishments in the Gaza Strip accounted for 32,439 enterprises in 2005 6. The overwhelming majority of enterprises are small businesses, with almost 90% employing less than 5 persons, 8.5% of enterprises employ between 5 and 19 employees while 0.7% of enterprises employ between 20-49 employees and 0.2% employ 50 and more. Retail trade represents the main economic activity in the Gaza Strip with almost 43% of enterprises engaged in that field, followed by industry with 13.5%. The distribution of enterprises in the Gaza Strip throughout the Governorates is as follows: North Gaza 16%, Gaza 44%, Gaza middle 13%, Khan Younis 17% and Rafah 10%. The private sector damage assessment covered only commercial, industrial and services industries; the agriculture and telecommunications, given the different methodology approach, were handled separately. At the time of the mission, the collection of damage data was still in progress, as was the collation, analysis and verification of the data, conducted by UNDP and the Private Sector Coordination Council (PSCC) was still underway. As a consequence, the verification of assessed damage could not be completed. The assessment of damage in the private sector was done by two initiatives. The first initiative was conducted by UNDP in cooperation with the PSCC. In a separate stage, DAI (an American consulting firm with a subsidiary in Palestine, focused on market-based approach to economic development) was requested by the Prime Minister s office to conduct another damage assessment in order to prepare vouchers that present the accurate damage of the productive assets based on their replacement cost. DAI started the process of data collection and was requesting local consulting firms to submit technical and financial offers to participate in the assessment phase at the time of writing. The private sector is represented by PSCC. Its members are the Palestinian Federation of Industries (PFI), Paltrade, Palestinian Chamber of Commerce, Industry and Agriculture for Gaza Governorates (PCCG), Palestinian IT Association (PITA), the Palestinian Businessmen Association (PBA) and the Palestinian Contractors Union. Other NGOs were established by donor initiatives in which they provide technical assistance for the private sector in specialized areas. Examples of these NGOs are the Palestinian Shipping Council (PSC) and the Small Enterprise Centre (SEC). All private sector representing bodies have their main office in Ramallah. Before the conflict and due to the continuous blockade on the Gaza Strip, most of the private sector activities were paralysed, with the remaining businesses partially functioning and barely surviving. The constraints on the amount and type of goods allowed through the borders as well as the total block of export operations, has resulted in the closure of most of the businesses. Since 2007, around 90% of industrial businesses have been closed and 94% of workers have lost their jobs (33,000 workers). It is therefore of prime importance for the private sector to develop an early recovery and strategic plan that ensures its autonomous development. The private sector plays a vital role in the economic development of the Gaza strip. Great efforts were previously made by different donors to strengthen this sector with few tangible results. Thus, it is important to deal with it carefully. The current funded programmes are limited to technical support and are provided by international organisations, mainly GTZ and DAI (funded by USAID, DFID). Damages and reconstruction cost Preliminarily findings show that more than 700 businesses are claiming damage, of which 268 are completely damaged and 432 are partially damaged. Reported damage to 673 establishments was calculated at 108.7 million, while damage to 27 establishments was not financially claimed. Of the damaged businesses, 53% are in the Gaza Governorate, while 21% and 13% are in North and Rafah Governorates respectively. Figure 26 shows the damage reported including buildings, equipment and stock. The industrial sub-sector was the most heavily damaged in terms of numbers followed by the commercial sub-sector and the service sub-sector (35% and 22% respectively). The service sub-sector includes petrol stations, telecommunications, information technology construction contractors and tourism. 6 Palestinian Central Bureau of Statistics (PCBS) (2005), Establishment Census. 2004: Main Findings. Ramallah-Palestine 40 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Figure (26): Allocation of private sector damage The commercial sub-sector claimed a damage amount of 19.5 million mainly for stocked materials and damaged buildings. The services sub-sector total damage was estimated to equal 23.5million. Most of the damage in services occurred in contracting services ( 4.7 million), petrol stations ( 4.3 million), and tourism ( 1.9 million). Within the industrial sub-sector, construction industries reported the highest damage at 22.6 million followed by food processing industries ( 18.7 million) and metal industries ( 15 million) respectively (See Figure 27). The industrial sector, which employs more than 35,000 workers, is one of the most important sectors to be targeted with new projects as it is essential for the reconstruction of Gaza. Figure (27): Amount of industrial sub-sector damage (in million ) Socio-economic impact Activities of the industrial sub-sector have almost come to a halt. According to Paltrade, only 25 private sector enterprises out of 2,400 are still operating. These enterprises only employ 1,878 out of 35,000 workers who were originally working in the private sector or used to work in Israel before 2000. After the start of the blockade on the Gaza Strip, some of them took up employment in the private sector and others became self-employed. The commercial and services sub-sectors also suffered because of the recent and earlier conflicts. Most of the wholesalers are facing the problem of bankruptcy since most of the imported products have been prohibited from entering Gaza for more than two years. Currently, the total number of type of products allowed into Gaza is limited to around 20 (mainly food and medicine) in comparison to the more than 9000 which previously entered. Around 1500 full containers are stored in the Israeli side without any certainty that they will be delivered to their owners. 41

Private sector establishments are currently unable to cope with high operational and labour costs, which have resulted in the laying off of more than 100,000 employees. Monthly income has deteriorated constantly from 2000 till now. There has been a dramatic increase in food prices, causing a gap between the monthly expenses and actual income. Due to inflation, real monthly income has reduced by 75% from the beginning of 2000 till now. Figure (28): Decrease in monthly income per household from year 2000 till now Considering the fact that the Israeli blockade has continued after the conflict, some local products are no longer available in the local market. This has directly affected the prices of daily consumable products and has added to the increased gap between household income and expenditure. 42 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Figure (29): North eastern Gaza Abu Aida cement factory (Construction industry) Figure (30): Eastern Gaza Taha Daloul and Brothers Company (Metal industry) 43

h. Telecommunications Figure (31): Location of damage Telecommunications Table (11): Estimated damage Telecommunication Component Estimated damage gerrp reported damage 1 PalTEL Network 2,474,000 2 JAWWAL Network 772,000 Total 3,246,000 10,400,000 44 Final Report Damage Assessment and Needs Identification in the Gaza Strip

General information on the sector Telecommunications systems within the Gaza Strip are provided by two commercial companies, PalTel and JAWWAL (PalTel Group). The lack of essential spare parts and new equipment for upgrades and repairs of previously damaged equipment has resulted in a degraded service and lack of maintenance for all services within this sector. In some cases, spare parts have been in storage awaiting approval from Israel for importation into the Gaza Strip for more than 4 years. Prior to the latest conflict there were about 113,000 landline subscribers and about 550,000 mobile subscribers. After the conflict, this amount has been reduced to about 103,000 landline and 220,000 mobile subscribers. The PalTel Group has a monopoly on the provision of landline and mobile telephone services within the Gaza Strip. Access to Israeli mobile telephone networks is available, notably Orange and Cellcom, with Orange having widespread coverage across the Gaza Strip while access to the Cellcom network is only available close to the border with Israel. For the mobile phone users, the Israeli Orange and Cellcom networks provide the coverage and receive revenues from JAWWAL, based on roaming network agreements. Damage and reconstruction cost The mission could conclude that damage to both the landline and mobile networks, was systematic, so as to cause maximum disruption to both local government and the community in general. Over 10,000 landline subscribers and 330,000 mobile subscribers were affected by the disruption of services. PalTel company damage includes: Total destruction of the Jabalya main switch. Total destruction of Beit Lahia multi service axis names (MSANs). Partial damage of PalTel buildings, including the company s headquarters. Partial damage of Zawaidah main warehouse building including widespread destruction of stored spare parts. Partial damage to the overhead cable network. JAWWAL company damage includes: Destruction of two 30m towers located in Jabal Eshaef and the Eastern Cemetery. Destruction of one 42m tower located in the area of the Jabalya Municipality, close to the PalTel main switch. Destruction of two 12m poles, 8 inch diameter, located in Alzahra city and Alzaitoun neighbourhood. Destruction of one vehicle fitted with mobile transmitting equipment. Destruction of one 13.5KVA diesel generator. Destruction and damage to civil works such as fences, two guards rooms, showrooms, towers foundations in the headquarters and branches along the Gaza Strip. Destruction of six cabinets and equipment rooms located close to the destroyed poles and towers. 45

Socio-economic impact Damage to the telecommunications facilities and network has cut connection to 10,000 landline subscribers, impacting on approximately 80,000 inhabitants, as well as depriving the general community of the use of public telephones. Furthermore, an estimated 330,000 mobile subscribers have been affected by the disruption of the services. The degraded service has further increased the sense of isolation for the residents of the Gaza Strip, both internationally and locally. Repair and reconstruction of the war damage will have a significant impact on the economic sector as well as the social situation in the Gaza Strip. The telecommunications network is an integral part of daily life and essential in the re-development of the commercial sector. It is also an essential service for local government in the conduct of its normal duties as well as in assisting in the co-ordination and management of the reconstruction efforts. More importantly, it is vital for residents to be able to call for emergency services. Figure (32): Destroyed JAWWAL 30m tower in East Gaza city Figure (33): Destroyed PalTEL main switch in East Jabalya 46 Final Report Damage Assessment and Needs Identification in the Gaza Strip

i. Housing Figure (34): Location of damage Housing Table (12): Estimated damage Housing governorate Totally destroyed Housing Partially destroyed Housing Estimated damage gerrp reported damage 1 North Gaza 2118 3240 118,372,000 N/A 2 Gaza City 675 2266 43,523,000 N/A 3 Middle Gaza 435 2874 23,395,000 N/A 4 Khan Yunis 396 1161 21,022,000 N/A 5 Rafah 412 1971 21,096,000 N/A ToTAL 4,036 11,512 227,408,000 271,789,000 47

General information on the Sector The main organisations involved in the housing sector include the Ministry of Public Works & Housing (MOPW&H), as well as Municipalities, UNRWA, UNDP, UN-HABITAT and Cooperative Housing Foundation (CHF). For the refugee population, UNRWA has the responsibility for providing housing for those refugees living in a refugee camp. For the refugees living outside, UNRWA provides rental assistance when the family is unable to live in the housing unit due to damage caused by conflict. Out of the total population, about 1 million refugees are registered; half of them live inside UNRWA camps. It is important to note that the use of the term house in relation to damaged property in this sector is misleading. The cultural norm within Gaza is for families to live in extended family groups, such that a number of related families live within the same building, effectively in individual apartments. Consequently, it is more appropriate to use the term housing unit, as the term house suggests an individual building. Interventions to support the affected families have commenced in 3 categories: (1) rental cash assistance; (2) living with other family members and (3) temporary tented accommodation. For those properties classified as having minor damage, cash assistance is being distributed by UNDP through the banks to enable the families to repair the damage themselves. The PA has made available 39 million (UNDP states $25 million), for those families with partial damages where the unit is structurally sound but is not habitable, with a portion of the repair sum being issued to assist with rental costs, also paid by UNDP through banks. For partially destroyed units, emergency waterproofing using plastic and/or polycarbon sheets is ongoing. A full structural assessment of some partially damaged property with structural damage is in process through the MoPW&H, to ensure that financial resources are not wasted on repairing buildings that may be at risk of collapse, and more importantly, that people still living in dangerous structures are evacuated. For minor damaged housing, the costs and quantity of damage has been included in the UN Flash Appeal, and so they are not covered by this report. To date, the MoPW&H and UNDP have completed their assessments of housing damage outside the refugee camps. The assessment of refugee housing by UNRWA is not completed at the time of writing this report. Damage and reconstruction cost The damage to the housing sector has not occurred in a small number of areas, but has been more widespread based on the following observations: Houses close to public and municipal buildings, specifically, those related to Gaza internal security forces. Housing at, or close, to strategic locations used by the IDF during the incursion, e.g. high points, incursion entry routes for armoured vehicles and artillery observation posts. Clearance of houses near to the Buffer Zone. Housing suspected of being used by Gaza Internal Security Forces. Clearance of lines of fire to prevent their use by Palestinian snipers against the IDF. Access routes to and from Gaza industrial and economic areas by the IDF. Housing beside roads used for entry and internal movement of IDF armoured vehicles during the incursion (as the IDF were wary of the use of the road network for fear of mines and pipe bombs). Indiscriminate damage to individual properties and small communities. 48 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Damage to the housing sector has been concentrated on the Governorates of North Gaza (35%), Middle Gaza (21%) and Gaza City (19%), affecting an estimated total population throughout the Gaza Strip of 100,000 persons, excluding those households with minor damage. Damage was incurred as a result of the land incursion by Israeli armoured vehicles, clearance of housing and other buildings in the Buffer Zone to a distance of 1-2 Km from the border as well as through collateral damage in residential areas, where housing was close to public buildings, especially Gaza Internal Security Forces. A total of 4,036 housing units were totally destroyed, with 11,512 housing units partially destroyed, affecting an estimated 100,000 persons, with about 75% of all totally destroyed and partially damaged housing located in the two northern Governorates. The numbers of totally destroyed and partially damaged housing units stated in the GERRP were based on the initial rapid assessment conducted under the GERRNA. At the time of writing this report, UNRWA had not yet completed the detailed assessment of damage to refugee housing and so the GERRNA figures represent the most accurate to date. The calculation of housing damage costs as represented in the GERRP, were only categorised by damage type, rather than by type and within each Governorate, as it is the case by the mission assessment. The GERRP calculation of totally destroyed housing proposes a unit cost for the reconstruction of 232 per square metre, and a total estimation cost of 181.8 million (US $232.75 million). The mission conducted an independent analysis of the construction unit cost for reconstruction of totally destroyed housing, using as a baseline actually contracted values on a large scale housing project in Rafah during 2006. Inflation factors have been taken into consideration on the assumption that the access of materials is permitted, allowing unfettered access for construction materials. The mission estimated unit cost for destroyed housing at 234 per square metre, which gives a total of 183.3 million (US$ 234.7 million) including a compensation allowance for furniture. The GERRP estimate for partially destroyed housing is 115 million compared to the mission estimate of 51 million. There is no explanation within the GERRP for the basis of calculation of this figure. Discussions with the Ministry of Planning revealed that the GERRP figure was a budgetary provision based on $10,000 per housing unit. Based on the GERRNA assessment of partially damaged housing verified by UNDP, the mission estimate was closer to $4,000 per housing unit. Socio-economic impact The impact of the loss of housing on an already over-stretched housing sector is significant. Since June 2007 and due to the blockade, construction materials have been scarce resulting in families not being able to repair damage nor to complete partially constructed new housing units. Displaced families are living with other family members or in rented accommodation, further depleting any remaining housing stock. The social implications of families living together in an over-crowded household create additional tension and lack of privacy for the families as well as a lack of segregation between age groups and between boys and girls. 49

Figure (35): Totally destroyed house (6 housing units) in East Jabalya Figure (36):Partially damaged house in Tahoun (2 housing units) 50 Final Report Damage Assessment and Needs Identification in the Gaza Strip

2. a. Comparison with the estimates presented by the GERRP Rubble removal and unexploded ordnance clearance The rubble removal element of the GERRP estimate is considered to be high while the UXO clearance element is considered to be low, although the estimated overall cost of 4.7 million is considered accurate. b. Public buildings The verification process and reconciliation of figures is challenged by the different criteria used to group the results and sub-sectors (i.e. inclusion of equipment costs, inclusion of utility connection costs etc). For some cost calculations in the GERRP, equipment costs have been included together with a reconstruction estimate for the building. This is not mentioned within the text of the GERRP but is clear through closer examination of the individual sub-sector financial summaries. According to the available data, the discrepancy between the mission damage estimate and the GERRP value is due to the cost of the damaged buildings being lower than the cost to reconstruct. Reconstruction cost has been based on construction costs prior to the closure with recent inflation costs taken into account to develop a reasonable estimate agreed with PA and UNDP. c. Energy No discrepancies in data were encountered. d. Water, wastewater & solid waste Water and wastewater The GERRP s total damage estimate is 6% higher than that provided by both the CMWU and UNDP. No cost breakdown of different damaged elements was included in GERRP to verify the source of this difference. According to the mission verification and consultation with the CMWU, UNDP and Gaza Municipality, the following changes to the approach of the GERRP report were proposed: Increasing the estimate for equipment and pipe network damages. Removal of some development project costs. Reduction in some civil works costs. Despite these changes the mission s total damage estimate was 4.5 million compared with 4.7 million as given by GERRP. Solid waste The mission s damage estimate by Governorate is significantly different from that of both GERRP and UNDP, which are about 30% inferior than that estimated by the mission. The GERRP figures are based on the current prices rather than the normal prices, which in general are inferior than the current prices. The higher mission estimate can be attributed to the following: The weak co-operation of some municipalities with UNDP and limited data verification due to the time pressure and the concentration on other sectors. Inclusion of damaged of access roads to landfills/dumpsites in Gaza and Rafah Governorates by the mission. 51

e. Transport Roads and bridges Though the UNDP estimate of road damage has been confirmed, the GERRP value remains more than three times higher. This is due to the fact that the GERRP considered the rehabilitation of whole streets where damage had occurred and not patch repairs, in line with their policy to build back better. Street lighting Though the mission and GERRP figures are equal, accurate field survey of damage sustained has not yet been conducted. Naturally it is anticipated that repair costs supplied by municipalities will have included repairs of lighting systems beyond those sections that incurred conflict damage. Furthermore, it is known that estimates from some municipalities were based on inflated market rates. Therefore it is strongly recommended that a thorough survey of damaged systems and market prices is undertaken prior to implementation of any rehabilitation projects. Ports The GERRP estimate of damage to port structures is almost 100 times higher than that verified by the mission. This is largely due to the estimate of damage to Gaza fishing port of almost 2 million where no major damage was actually sustained. Airport The GERRP damage value is over 20 times higher than that estimated by the mission as it includes job creation schemes to rehabilitate the runway and other structures damaged in previous conflicts. f. Agriculture GERRP reported data matches with the Agriculture Sector Report: Impact of Gaza Crisis and Response Plan. By comparing these numbers with mission estimates, some difference was apparent. A remarkable difference occurred in agricultural infrastructure. By reviewing the items assessed in GERRP, it is clear that some items were not included in mission assessment (i.e. marketing infrastructure and Ministry of Agriculture losses). g. Private sector The overall estimate of GERRP reported damages matches mission estimates. However, closer investigation into the sub-sector exposes remarkable differences: Commercial sub-sector GERRP reported damage exceeds mission estimates by 184%. This would put the commercial sector in the first rank in terms of damages. This assertion is open to question because the commercial sector was not as badly damaged as the industrial sector. The wholesalers and retailers were not targeted in the first place since they are not located close to the border areas. Industrial sub-sector GERRP reported damage is 35% less than the mission estimates. The industrial sector was mainly targeted in the conflict for two main reasons: 1/ it is located close to the border areas, 2/ it includes the metal workshops, which were among the main targets from Israel. Based on the mission site visits, the industrial sub-sector was damaged more than other sub-sectors in terms of machines, buildings and stocks. 52 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Services sub-sector Even though the telecommunications sector was not included in GERRP private sector reported damage, the reported figures are only 27% of the mission estimates. GERRP reported that the tourism sub-sector was damaged by ( 3.5 million) but this does not reflect the reality, except if the indirect damage due to the blockade are taken into consideration. h. Telecommunications The GERRP value represents the claimed sum as presented by the commercial companies including 7 million in lost revenue. Preliminary assessment of the damage indicates that reconstruction costs have been included together with cost for the improvement of some facilities. Although the reported quantities and unit costs have been verified, the additional improvement costs have been excluded along with the lost revenue compensation component. i. Housing The GERRP cost for partially destroyed housing is 115 million compared to the EUNIDA estimate of 51 million. There is no explanation within the GERRP to explain the basis of calculation of this figure, although discussions with MOP revealed that the GERRP figure was a budgetary provision based on $10,000 per housing unit. Based on the GERNA assessment of partially damaged housing verified by UNDP, the EUNIDA estimate was closer to $4,000 per housing unit. 53

3. Socio-economic impact of damage The recent conflict has results in severe deterioration of socio-economic conditions in the Gaza Strip, in which vital infrastructure has been compromised or destroyed. This has resulted in a lack of shelter and energy sources, deterioration of water and sanitation services, food insecurity and overcrowding. During the conflict 1,440 Palestinians were killed, of whom 431 were children and 114 women 7. At least 5380 people were injured, including 1872 children and 800 women. Shortage of water oil and gas and other basic necessities of life affected the society to a large extent. The gap between rich and poor has increased. Access to health care Access to health care was severely restricted and hampered by security constraints. Maternal and child health services at PHC level were disrupted. Despite the critical conditions, maternity assistance for normal deliveries was provided as well as specialised health care for obstetric and neonatal complications, though many times in improvised settings within health facilities; maternity wards and operating theatres having been transformed into trauma units. The quality of health care has been further affected by deterioration in the functionality of medical equipment due to the lack of maintenance and spare parts, as well as by shortages of drugs and medical supplies and restricted training opportunities for medical staff that were already at poor levels pre-crisis. The precondition for preserving the health of the population in Gaza is to reduce health risks including: low quality of food, lack of clean water and sanitation, stress, unemployment, poverty and social exclusion. Only if these factors are addressed, will an improved health system be able to prevent any deterioration in people s health and guarantee that any improvement will be sustained. Psychological impact Due to the intensity of the conflict and the excessive and heavy bombardment, a large number of Palestinians with no exceptions to age, gender, and geographic location has been psychologically affected by the conflict. Medical professional s state that due to the intensity of this recent conflict, the psychological effects could take longer to be diagnosed and treated compared to previous conflicts. It is estimated that 10% of the population will need immediate emergency psychiatric interventions. Some acute cases have been registered as people were returning to assume normal day-to-day activities post-conflict and it is estimated that a considerable percentage of the population will need psychological and physiological assistance. Children have been directly affected by the conflict showing evident signs of anxiety, aggressive behaviour, bedwetting and constant interruptions of sleep due to nightmares. Food security There has been a dramatic increase in food prices. Income has decreased causing a huge gap between the assumed monthly expenses and the actual income sums. Considering the fact that the Israeli blockade has continued after the war, some local products are missing from the local market. This has directly affected the prices of daily consumable products and has increased the gap between the household s income and actual basic expenses resulting in increased food insecurity among Gazans. Social instability, movement restrictions, and limited access to services and resources are serious threats to food security in the Gaza Strip. The Consumer Price Index (PI) for most of the agriculture produce and livestock has increased during the conflict and, in many cases, remained considerably high after the conflict 7 According to UN sources: "Humanitarian overrview, Gaza Strip", OCHA, March 2009 54 Final Report Damage Assessment and Needs Identification in the Gaza Strip

due to continuation of blockade, in addition to the damage sustained in the agriculture sector. For example, the PI for white meat (i.e. chicken and fish) has increased an average of 300% during the conflict and has remained high at levels around 100% since. Household needs Household needs include all primary life requirements as employment, food, health among others. The following figure illustrates the prioritisation of household needs after the conflict: Figure (37): Socio-economic impact of damage household needs 55

4. Impact on EC & EU Member States projects Context The continued closure of the borders with Israel since June 2007 has had a significant impact on construction related projects, as well as any capacity building projects as essential support equipment and material have not been available. Since 2006, there has been only limited investment in Gaza by EC and EU Member States as a direct consequence of the political situation. The mission was to conduct a financial evaluation to damage done to infrastructure financed by the EC and Member States and reported to have been destroyed or damaged during the conflict. At a meeting held at ECTAO on Thursday 10 March 2009, the experts provided EC and EU Member States representatives with their initial damage assessment and requested further information on EC and EU Member States funded projects in Gaza to complete their assessment. Data collection Initial data collection was conducted on damage to EC and EU Member States projects incurred since 2000. A copy of this spreadsheet, lastly updated in April 2008, was received from ECTAO and used as the basis for this report. As a consequence of the meeting at ECTAO, project data was received in various levels of detail from the following Member States: EC: project titles and contact names were provided where applicable, for the mission to contact and obtain data. Denmark: a detailed report of damage was provided from DANIDA including cost estimates. France: a detailed report was provided from both the Consulate General Office and AFD in Jerusalem including damage cost estimates. The Netherlands: a rapid damages assessment report prepared by the agriculture development association PARC in Gaza on projects funded by The Netherlands, was presented to the mission for inclusion. Spain: the Spanish Cooperation and Development Agency staff based in Jerusalem provided data in the form of the damage recorded on the spreadsheet developed by IMG. Sweden: the Swedish Development Agency (SIDA) engaged an independent consultant to undertake a review of damage to SIDA funded projects. The consultant was authorised to share this information for inclusion into this report. Germany: The figures have been provided after the end of the mission by the German Federal Ministry for Economic Cooperation and Development. Other sources of information included: Coastal Municipal Water Union (CMWU): details of damage to water and wastewater related projects were provided by the CMWU in the form of the damages recorded on the spreadsheet developed by IMG. Involved donors were EIB, ECHO, France, Norway and Sweden, Solid Waste: through contacts made with the relevant Municipal Authorities, consolidated data was collected for solid waste facilities in the form of damages recorded on the spreadsheet developed by IMG. Involved donors were EC, Germany, The Netherlands and Spain. 56 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Verification Methodology Depending on the level of detail of damage information received, different levels of verification were used: For Denmark, France and Sweden, where detailed reports had been received directly from the Member State, no independent verification was conducted on the reported damage. For Spain, where damage information had been provided locally, review of the reported damages in relation to the respective sector was conducted to ensure that the reported damage was already included in the sector damage report by the PA. Clarification was conducted with the local project staff to ensure that locations were identified so that site visits, where possible, could be conducted by a mission expert. In two cases in the agriculture sector, local project staff were unable to provide any information concerning the extent of damage. Therefore no site visits could take place. Consequently, only the fact that there was damage could be recorded, without any estimate of costs. For Germany, figures have been provided after the end of the mission. Therefore, those data have not been checked by the mission. For data received from the CMWU and Municipal Authorities relating to solid waste, was verified by a mission expert through field visits. The data was then included into the damage spreadsheet developed. For EC projects, where project titles and local contact details were provided, direct contact was made with the relevant projects to view any damage, through site visits. As no detailed project information was available to the mission expert, it was not possible to conclude if the reported damage was funded by the EC and/or EU Member State, or that other damage had not been reported and should be included. Equally, where equipment had been provided under the project, as no project details had been provided, it was not possible to verify independently as to if the presented information was correct and/or entire. Consequently, for these cases, no realistic independent verification was possible, other than to record information received from the project staff or beneficiary organisation. Damage cost The table below summarises the data received and estimates the total cost of damage. Additional damage may have occurred that has not been reported, as well as the cost of those damage. The total estimated cost of damage relating to the recent conflict is 12.35 million, including the German figures provided after the end of the mission. From 2000 onwards, the total cost of damages to EC and EU Member States funded projects is estimated at 56,35 million. The consolidated spreadsheet, previously prepared and updated by IMG on behalf of ECTAO Jerusalem of damage recorded with estimates from 2000 is included in Annex D to this report. 57

Table (13): Damage costs of EC & EU Member States projects # Component donor damage Estimate 1 Gaza International Airport Spain, Germany, Sweden 300,000 2 Solid Waste Management in the Gaza Strip Germany 25,000 3 Beit Lahia Solid Waste Management Council Germany 168,000 4 Support to Municipal Development and Management (SMDM) Denmark 102,000 5 TEP Community College, Gaza EC 13,241 6 Elementary & Secondary School for Boys Al Awda Spain 35,300 7 Hispanic/Palestinian Institute Spain 67,400 8 Al Karameh Orphanage Spain 620,000 9 Emergency support and employment generation for female-headed households through backyard farming and cottage industry in the West Bank and the Gaza Strip FAO Spain N/K 10 Improving the livelihoods of farming households through diversification of vegetable and medicinal plant production in the West Bank and the Gaza Strip - FAO Spain N/K 11 QHIPA I and QHIPA II ( Quick and High Impact Poverty Alleviation Programme, Phase I and II) Job Creation Programme Office of the President 12 Middle East Regional Programme for the Sustainable Management of Natural Resources, Spain 1,170,000 Spain 250,000 13 Upgrades to Internal and Main Roads North Gaza Sweden 1,542,191 14 Water Upgrade Projects North Gaza Sweden 42,188 15 Solid Waste Management Council-Gaza Middle Germany 25,000 16 Gaza City Solid Waste Disposal Project (94-98) EC 185,000 17 Rafah Solid Waste Management Project (92-97) Netherlands 81,000 18 Wadi Gaza Municipality, Compactor Truck Spain 102,000 19 Al Mashroua Sewage Pump Station, Beit Lahaia Italy 5,000 20 Enhancing Palestinian Farmers for Export Netherlands 1,783,957 21 Enhancement and Improvement on the Cash Crop sector in the Gaza Strip Netherlands 1,084,077 22 Enhancement of Livelihoods in the Gaza Strip Netherlands 165,231 23 North Gaza Wastewater Treatment Facilities Sweden 141,000 24 Water supply wells and distribution networks ECHO, France 1,672,300 25 Waste water collection systems France, Sweden 745,192 26 Water Storage reservoirs EIB 403,846 27 Unseen damage of underground water and wastewater networks France, Norway 346,154 28 Poverty Oriented Employment Generation Programme - North Gaza, Rafah, Beit Hanoun, Gaza (*) Germany 670,618 29 EGP School Construction in the Gaza Strip(*) Germany 603,946 Note: N/K indicates where the local project has not or could not provide any financial estimates of the damages * Those figures, provided by Germany after the end of the mission, have not been checked by the experts. ToTAL 12,349,641 58 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Conclusions The extent of the damage reported by the EC and EU Member States is not as high as it might have been expected bearing in mind the scale of the conflict. The main reason for this is that, due to the situation in Gaza, in particular the Israeli access restrictions, both the EC and Member States had kept infrastructure investment in Gaza at relatively low levels for a number of years prior to the latest incursion. Moreover, the estimation provided is based on information made available by EU Member States, which has not been systematically received. The consistency and level of detail received was highly variable, which made the verification of reported damages quite difficult. Therefore, the damage estimate might be underestimated and should be considered indicative. 59

EuropeAid III. Identification of Needs 61

1. Overview of the programmes In the second part of the mission and based on the assessed damage, the experts analysed which were the most important needs and proposed programmes for donor funding. These programmes cover the damage sustained during the latest conflict and also address the most urgent needs resulting from the different blockades, which have been hampering the Gaza strip and its population for the last years. The experts discussed the priorities with different stakeholders and the mission came up with 41 programmes, which have been identified in 7 sectors. No programme has been proposed in housing, as it is anticipated that other donors will cover this sector (most probably Arab countries and Islamic Banks). No project has been proposed in telecommunications sector neither, as the private companies have not expressed any needs except for political support to get access of materials. Projects have been sorted into two categories: Priority 1: Programmes expected to have a major socio-economic impact within six months of commencement. Priority 2: Programmes expected to have a major socio-economic impact only after six months from commencement. Table (14): Overview of identified programmes Sector Programmes Total Priority 1 Priority 2 gerrp Rubble Removal 1 4.7 4.7 0.0 3.7 Public Buildings 4 27.8 21.5 6.3 55.5 Energy 3 77.1 18.2 58.9 11.7 Water, Wastewater & Solid Waste 10 78.0 58.0 20.0 27.1 Transport 9 157.1 55.7 101.4 93.0 Agriculture 7 54.5 54.5 0.0 207.8 Private Sector 7 115.0 75.0 40.0 114.1 ToTAL 41 514.2 287.6 226.6 512.8 Rubble Removal; 4.7; 4.7; 1% 1% Public Public Buildings; 27.8; 27.8; 5% 5% Private Private Sector; Sector; 115; 115; 22% 22% Energy; Energy; 77.1; 77.1; 15% 15% Agriculture; 54.5; 54.5; 11% 11% Water, Wastewater & Solid & Waste; Solid Waste; 78; 78; 15% 15% Transport; 157.1; 157.1; 31% 31% Figure (38): Percentage of needs amounts per sector 62 Final Report Damage Assessment and Needs Identification in the Gaza Strip

2. Proposed implementation mechanism Considering the specific political situation, where the stakeholders in the Gaza Strip are often under the control of Hamas, the mission has proposed to establish for each programme an independent Project Implementation Unit (PIU), which will be responsible for the procurement and financial management of each programme. Depending on each sector, this PIU could be UNDP, UNRWA, a private consulting firm, an NGO or could even be a financially independent department of a utility. This PIU will work closely with the PA and relevant stakeholders to which it will report on a regular basis. 3. Overview of the programmes by sector A quick overview is presented below, with more detailed information on both agriculture and private sector, due to the magnitude of the damage and the complexity of these sectors compared to the infrastructure sectors. a. Rubble removal Rubble removal is required as a precursor to reconstruction of both property and commercial enterprises, but also to reduce the health and safety risk to the population. A funding request of 3,906,000 has been included in the Flash Appeal and covers only the most damaged Governorates; Gaza and North Gaza. Although spontaneous clearance efforts have commenced, these tend to be unauthorised and present a danger to the workers without the required support from the UXO/UXB clearance teams. It is critical for this work to proceed, thereby enabling further assessments and initial design work to commence. It is equally important that the border will be open to allow essential material, equipment and staff access to Gaza, not only to support the rubble removal, crushing and re-cycling operations, but also to support UXO/UXB clearance. If the project is not funded through the UN Flash Appeal, full funding through the EC and/or EU Member States must be made available, to the amount of 8.6 million. b. Public buildings The four programmes proposed for the public building sector respond to the priority of urgently rehabilitating the education and health care systems and municipal governance to full operational capacity. The three subsectors have sustained widespread damage to a large number of facilities, varying from total destruction to minor, yet significant, damage. This has left these systems functioning at below normal levels, affecting a significant portion of the population including some of the most vulnerable groups, such as youth, children and the sick. Significant destruction of municipal facilities has resulted in a substantial reduction in the ability of the municipalities to deliver the majority of the 26 required basic services to support the population, as prescribed in the Local Councils Law of 1997. The objectives of the proposed programmes focus primarily on the recovery of the affected systems to their operational capacity prior to the conflict, in accordance with the policy of building back better as expressed in the GERRP. However, this does not include the social and human resource components as included in the GERRP, but limits the interventions to physical infrastructure and replacement of equipment of the buildings considered. Due to the long-term degradation of the above-mentioned services, coupled with a lack of investment over many years, additional interventions will be required to recover the quality of services to acceptable levels. 63

c. Energy Three programmes have been identified in the energy sector. They are: Rehabilitation of Damage to the Distribution Network (Priority 1). This covers permanent repair of the temporary works undertaken by GEDCO in order to provide safe and efficient connections for domestic power supplies. Restoration of Gaza West Sub-Station (Priority 1). This will double the output from the Gaza Power Plant by replacing the under-sized, second-hand transformers installed after an attack in 2006. This power increase will reduce the energy deficit of the Gaza Strip and provide some power for revitalized industries and agriculture. Gaza Transmission Project (Interconnection with Egypt) Phase 2 (Priority 2). This will provide 120MW of power for the Gaza Strip at approximately one quarter of the price of production from the Gaza Power Plant. Of the above programmes, the last two were not considered in the GERRP. Hence the total Energy Sector budget is almost 70 million higher. d. Water, wastewater and solid waste The severe damage to the water and wastewater infrastructure in the latest conflict and its impact on the majority of the population of Gaza has resulted in an immediate response from the international community. As reported by the PWA and CMWU, a small portion of the damage has been fixed already, with the remainder to be repaired under World Bank funding. Accordingly, the programmes suggested for water and wastewater will focus more on repairing the deterioration that occurred due to the blockades, in order to restore an adequate level of service. Seven programmes amounting to 57 million are proposed, which are expected to have a quick impact on the service level, environment and public health, as well as to contribute significantly to job creation. All of these programmes are consistent with water and wastewater strategies and master plans, with three of these programmes being included in the GERRP. In solid waste, one programme is proposed for the repair or replacement of damaged equipment and facilities, which will improve the collection service and cleaning of streets. Another two programmes are proposed for securing additional landfill capacity for the coming 10 years to include waste minimisation components (i.e. reduction, reuse, recycle, compost, etc.). In general, these programmes are in line with existing plans included in the GERRP. e. Transport Nine programmes have been identified in the transport sector. They are: Three for the rehabilitation of regional roads. Out of these, Salah Eddin and the East Road are considered Priority 1 as they are key links for trade and industry in the Gaza Strip and are seriously degraded due to the blockades. The coast road is Priority 2 as it is not of key trade or industrial use. Five for the rehabilitation of municipal roads, one programme for each Governorate. Part of these, municipal roads in Rafah and Khan Younis Governorates have been assigned Priority 1 due to their advanced state of decay due to blockades. One for the International Airport. This important link, though subject to international political agreements, is vital to the growth and freedom of the Gaza Strip. 64 Final Report Damage Assessment and Needs Identification in the Gaza Strip

The total cost of these interventions is 157 million, which is about 70% above that of the GERRP. This is because rehabilitation of all road systems has been considered here, not just those roads that sustained conflict damage. Also, complete rehabilitation of the airport, including technical installations has been included to bring the airport back into basic operation. f. Agriculture Background and needs analysis As a consequence of the long blockade as well as the recent conflict, access to traditional agricultural land has been badly affected. Damage to the farming land due to the recent conflict is estimated at 16%, however, the increase of the buffer zone to 1km along the eastern border and to 2km along the northern border has reduced the available agricultural land by 30%. As the Gaza Strip is one of the most densely populated areas in the world, pressure on the conversion of agricultural land for housing purposes is constantly increasing. The majority of farms are family owned and operated, with an average land area of half a hectare (5 dunums). These small-scale farming operations provide direct employment and financial independence to the families, but tend to be less efficient than traditional larger scale methods. Significant over-extraction of water from the aquifer, for agricultural use, has resulted over time in an increase in salinity thus reducing the uses for which the water is suitable. This has also impacted on the quality of water for human consumption, which now has salinity levels considerably above WHO recommended limits. Food security and nutritional issues are now a serious cause for concern, as well as the requirement for direct food assistance to be provided by the international community in addition to an increased dependency on imported food commodities from Israel. The Ministry of Agriculture has identified the regeneration of the agriculture sector, as being a critical component of early recovery, as it will provide employment as well as to reduce the requirement for imports and dependency on humanitarian food assistance. A new strategy for agriculture is required to maintain the ability to produce food within the Gaza Strip. It should identify new methods in the management of urban and suburban small scale farming operations to become more efficient and intensive, with safe access for workers and close proximity to local markets. It is important to recognise that, with the continued closure of the borders and therefore the export market, coupled with the desire of the MOA to reduce the dependency on imported food products, the Gaza agriculture sector will effectively become a closed loop market. Management of such an economic market to ensure that the correct food products are grown at the right time and in the right quantities to ensure that a secure and nutritional balance of food products are available while prices remain stable, requires a different approach to that currently in operation. Market price and quantity data needs to be collected and made available to the farmers to assist them in managing their farming operations, as part of a sustainable agricultural sector. The new strategy should link market data collection and dissemination with the farming operation technical assistance to the small-scale farmers, as well as defining a flexible process for exports when the opportunity arises. Equally important is the use of water to support the agriculture sector. Most water is extracted from the aquifer through boreholes; however rainfall is unable to replenish extracted water. The new strategy should identify mechanisms to minimise water usage and wastage, and maximise the re-direction of storm and processed wastewater back into the aquifer. In addition plant and variety selection should be reviewed to reduce water consumption, as well as methods for increased water retention capacity in the soils. The use of the old Israeli settlement greenhouses has been reserved for export production as a stated policy, so as to protect the domestic market for local food production capacity, mainly through the small-scale farming system. Lease agreements have been drawn up with commercial growers for the use of some of these facilities, but are so far not in function due to the closed borders. In addition, the residential land within the old settlements has been declared Strategic Land for the increasing population to expand into at a later stage. It is considered that mass migration into these vacated settlements to provide the necessary labour to support such large scale farming operations is not socially acceptable at this time. 65

Identified programmes The value of the agriculture sector immediate recovery programmes is considerably less than the damage value as stated in the GERRP (US$269million or 209million), which includes US$88million or 69million as indirect losses (revenue losses from the lost export market). In addition, the GERRP damage value includes mature orchard trees and livestock rather than the replacement value of new trees and young livestock. The programmes detailed below provide for an immediate regeneration of both the small-scale farming sector as well as the provision of needed technical assistance and capacity building of the Ministry of Agriculture extension officer system to support the farmers throughout this period. Regeneration of this economic sector that has been degraded over the last 6 to 10 years will take time to recover, consequently, it is expected that further interventions will be required. Commercial scale agrobusiness operations have been included in the private sector programmes. As the regeneration of the agriculture sector is likely to require a new direction and focus on food production techniques, consistent with the new strategy, programmes have been developed based on geographic area rather than on sub-sector specialities (horticulture, livestock or crops). This is due to the fact that, irrespective of the outcome of the new strategy, farmers will require rural roads, greenhouses, crop and greenhouse irrigation pipe networks, seeds & tools, re-instated land as well as replacement livestock and shelters to recommence their activities. Small-scale farmers not directly affected by the recent conflict would also receive technical guidance and support to conform to the new strategy, thus increasing the overall capacity of safe food production within Gaza. The availability of specialist agricultural advice to the small scale farmers through the Agriculture Extension Officer system of the Ministry of Agriculture would be re-developed in accordance with the new strategy, supported by an international consultant. TA components to the MOA would include replacement of equipment for the soils and veterinary laboratories; re-instatement of the tree nursery with relevant technical skills training; re-instatement of the fish egg hatchery; re-instatement of the livestock stud sheep herd (Assaf genetic strain) and breeding facilities; development of composting techniques with facilities; development of an integrated pest control facility to reduce the contamination of ground water through the use of chemical pesticides; replacement of vehicles and equipment for the Extension Officers; training and technical advice in the implementation of the new agriculture strategy including analysis on appropriate plant varieties and livestock breeds as part of the re-stocking process. g. Private sector Background and needs analysis Preliminarily assessments indicate that more than 700 businesses have claimed damage of which 268 are completely destroyed and 432 are partially damaged. The total loss suffered by private sector businesses in the Gaza Strip is enormous ( 140 million), especially when considering damaged machines, buildings and equipment. Moreover the cost of interruption of business activities and the lost markets is considered as an accumulated damage of the affected enterprises. In order to ensure business sustainability and economic recovery, core production facilities and machinery should be restored. It is significant to note that the Gaza private sector had suffered some deterioration even before the recent conflict through repeated blockades on amounts and types of goods allowed through the borders and the total ban on export operations. This led to the closure of an estimated 95% of factories (3,750 in number). Private sector enterprises developed parallel strategies to sustain themselves in the changing environment in order to maintain operations and market presence. The private sector is considered to be the engine of economic development. Damaged businesses are currently calling for financial assistance to replace or repair their losses. Financial accessibility and technical assistance as well as job support are important for their growth. On the other hand identifying the opportunities for private sector enterprises is vital in order to enable the 66 Final Report Damage Assessment and Needs Identification in the Gaza Strip

businesses to cope with the current complex business environment. Business alternatives and opportunities for current businesses should be taken into consideration and a joint strategic plan for the private sector should be developed. Identified programmes Seven programmes were identified in order to satisfy the needs of the private sector in the early recovery stage. These programmes are separated into four categories; financial assistance, technical assistance, industrial zone infrastructure and institutional capacity building. The programmes include activities in an integrated approach in where some should be implemented in parallel with others. Highest priority is given to cash assistance, repair and replacement, technical assistance and industrial zones infrastructure. Technical assistance is important in the reconstruction phase in order to help enterprises to recover in a sustainable manner. Figure (37) represents the framework of private sector programmes. Special consideration is given to the seventh programme (G7) in which technical and managerial support should be delivered to the Private Sector Coordination Council (PSCC) members. PSCC members are the main organisations representing the private sector in which capacity building is required in terms of system development, training and physical assets. In addition review and adaptation of strategies and policies to cope with changeable market conditions should be included in the development of an overall strategic plan. Data Base Verification and Data Ware house Development Financial Assistance Technical Assistance Industrial Zones Infrastructure Institutional Capacity Building Priority based on importance to reconstruction plan Construction Industries Agro- Business Industries Manufacturing Industries Micro and Small Businesses Tourism and Service Sector G1: Budget 10 million Cash Assistance: Full and partially damaged factories G2: Budget 40 million Repair and Replacement/ In-Kind Compensation Rebuilding by repairing or replacing of damaged assets (Priority to Construction and agribusiness industries) G4: Budget 25 million Support Businesses through Guarantee Systems to Banking and Micro-Finance Institutions G5: Budget 10 million Technical Assistance: Business Development Services (BDS): business management, know how, information on machines etc. G6: Budget 10 million Job Support and Job Creation Rehabilitate and support of admin and technical staff through training and covering of salaries. This will reduce operational costs and enhance capacity G3: Budget 15 million Construction of Two Local Industrial Estates and Reconstructi on of Gaza Industrial Estate G7: Budget 5 million This program will target: Private Sector Coordination Council members Components: -Developing Strategic Plan for the next five years that ensures private sector development and economic recovery -Capacity building for targeted group i.e. System development and training -Development of monitoring and evaluation system for EU funded projects. Implementation of five years Strategic Plan Time Frame: Two Years (24Months) Figure (39): Framework of private sector programmes 67

Notes: Animal feedlot and livestock producers originally included in the agricultural sector damage assessment were included in private sector programmes considering their similarity to industrial enterprises. The total programme budget is 120 million, which is only slightly higher than the GERRP value of 114 million. Proposed implementation mechanism As in other sectors, the mission has proposed to establish for each programme an independent Project Implementation Unit (PIU), who will be responsible for the procurement and the financial management of each programme. This implementation mechanism will be adapted in the early recovery stage till the private sector representing bodies are able to deliver the necessary support to enable them to handle such programmes in the future. h. Programmes overview from the socio-economic perspective Restoration of confidence and the provision of guarantees for the economic productive sectors (ie. Private Business and Agriculture) is required in addition to the restoration of infrastructure and facilities. The resultant output of employment opportunities and income generation, will contribute to an increase in GDP, thereby assisting in the alleviation of poverty in the Gaza Strip and the Palestinian Territory at large. The high unemployment levels due to the instability of the Palestinian economy in the Gaza Strip have called for several interventions by the International Community throughout the last decade. Previous interventions resulted in temporary relief, but have not provided any sustainability for those jobs created. It is important to review previous job creation projects before implementing new proposals, to ensure effectiveness in the creation of focused and sustainable job opportunities. Reconstruction of the physical infrastructure, especially the electricity network and roads, will have a significant positive impact on the redevelopment of the private sector businesses, as well as in improving the mobility of the population at large. Regeneration of the agriculture sector, which is based on small family operations, will have a significant impact on the production and availability of food in the market, thereby reducing the dependency on humanitarian food assistance and imported foodstuffs. In addition, a high number of temporary jobs will be created to support the agriculture sector, providing an injection of cash into the economy while the private sector is re-developing. It is anticipated that the private sector will be capable of absorbing much of the workforce, to support the reconstruction efforts and beyond, providing that an export market is available. 4. List of programmes Individual programmes are summarised in the following table and are included in Annex B 68 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Table (15): Summary of identified programmes per sector Sector Programme name Area Cost Estimates Priority 1 Priority 2 duration (m) Expected mandays Expected no. of Jobs A1 Rubble Removal and UXO/UXB Clearance Khan Younis, Gaza Middle and Rafah 4.70 4.70 6 90,385 724 Subtotal 4.70 4.70 0.00 90,385 724 Public Buildings rubble removal B1 Reconstruction of Elementary and Secondary Schools The Gaza Strip 10.00 10.00 24 205,128 411 B2 Reconstruction of Higher Education facilities The Gaza Strip 6.30 6.30 24 129,230 259 B3 Rehabilitation and Upgrade of Health Care facilities The Gaza Strip 5.00 5.00 24 102,564 206 B4 Reconstruction and Upgrade of Municipal facilities The Gaza Strip 6.50 6.50 24 133,333 267 Subtotal 27.80 21.50 6.30 570,255 1,142 C1 Rehabilitation of Electrical Distribution System Seven areas throughout Gaza Strip 10.60 10.60 12 156,282 626 C2 Rehabilitation of Gaza West Sub-Station Energy C3 Gaza Transmission Project Phase 2 Khan Younis, Gaza Middle and Gaza Gaza Middle, Gaza and Gaza North 7.60 7.60 12 112,051 449 58.90 58.90 24 868,397 1740 Subtotal 77.10 18.20 58.90 1,136,731 2,815 69

Sector Programme name Area Cost Estimates Priority 1 Priority 2 duration (m) Expected mandays Expected no. of Jobs D1 Construction of Phase 1 of Khan Younis WWTP Khan Younis 11.00 11.00 24 147,436 295 D2 Construction of Part B of North Gaza Emergency Sewage Project North Gaza Governorate 10.00 10.00 24 147,436 295 D3 Reconfiguration of water supply and distribution system Gaza City 8.00 8.00 18 117,949 315 D4 Reconfiguration of water supply and distribution system Khan Younis Governorate 8.00 8.00 18 117,949 315 D5 Reconfiguration of water supply and distribution system Middle Gaza Governorate 4.00 4.00 12 58,974 236 D6 Construction of storm water infiltration basin Khan Younis 6.00 6.00 18 88,462 236 D7 Rehabilitation/upgrading of waste water networks and pump stations Gaza, Khan Younis, Rafah Governorates 10.00 10.00 24 147,436 295 D8 Rehabilitation/upgrading of solid waste equipment and provision of new equipment 5 Governorates 10.00 10.00 12 147,436 591 D9 Sanitary extension of Rafah Dumpsite Rafah Governorate 4.00 4.00 24 58,974 118 D10 Sanitary extension of Deir El Balah and Gaza Landfills Middle and Khan Younis Governorates 7.00 7.00 24 103,205 207 Subtotal 78.00 58.00 20.00 1,135,257 2,904 Water, Wastewater and Solid Waste 70 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Sector Programme name Area Cost Estimate Priority 1 Priority 2 duration (m) Expected mandays Expected no. of Jobs E1 Rehab of Regional Roads in the Gaza Strip 1 (Salah Eddin) North Gaza, Gaza and Gaza Middle 22.20 22.20 15 E2 Rehab of Regional Roads in the Gaza Strip 2 (Coast Road) All Governorates 6.40 6.40 12 E3 Rehab of Regional Roads in the Gaza Strip 3 (East Road) All Governorates 4.80 4.80 10 E4 Municipal Roads, Bridges and Street Lighting 1 North 11.40 11.40 12 168,077 673 E5 Municipal Roads, Bridges and Street Lighting 2 Gaza 25.30 25.30 15 373,013 1196 E6 Municipal Roads, Bridges and Street Lighting 3 Gaza Middle 8.30 8.30 12 122,372 490 Transport E7 Municipal Roads, Bridges and Street Lighting 4 Khan Younis 22.10 22.10 15 325,833 1044 E8 Municipal Roads, Bridges and Street Lighting 5 Rafah 6.60 6.60 12 97,308 390 E9 Airport Rafah 50.00 50.00 24 881,410 1766 Subtotal 157.10 55.70 101.40 1,968,013 5,559 71

Sector Programme name Area Cost Estimate Priority 1 Priority 2 duration (m) Expected mandays Expected no. of Jobs F1 Supporting Farmers in the Beit Lahia through Rehabilitation of Agricultural Assets Beit Lahia 6.90 6.90 36 128,846 172 F2 Supporting Farmers in Beit Hanoun through Rehabilitation of Agricultural Assets Beit Hanoun 4.70 4.70 36 84,615 113 F3 Supporting Farmers in South Jabalya through Rehabilitation of Agricultural Assets Jabalya 9.90 9.90 36 182,692 244 F4 Agriculture F5 Supporting Farmers in East Gaza - Governorate through Rehabilitation of Agricultural Assets Supporting Farmers in South Gaza Governorate through Rehabilitation of Agricultural Assets Gaza Municipality Wadi Gaza and Al Mughraga Municipality 10.70 10.70 36 200,000 267 6.70 6.70 36 121,154 162 F6 Supporting Farmers in Middle and South Gaza Strip through Rehabilitation of Agricultural Assets Middle and South area 6.50 6.50 36 115,385 154 F7 TA to MoA 9.10 9.10 36 Subtotal 54.50 54.50 0.00 832,692 1,112 72 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Sector Programme name Area Cost Estimate Priority 1 Priority 2 duration (m) G1 Financial Support of private sector through providing cash assistance 10.00 10.00 6 G2 Private Sector Revitalization Program - Repair and Replacement 40.00 40.00 18 G3 Construction of Gaza Local Industrial Estates 15.00 15.00 22 G4 G5 Support Businesses through providing Guarantee systems to banking and micro finance institutions Supporting Private Sector Enterprises through providing technical assistance 25.00 25.00 24 10.00 10.00 18 Expected mandays Expected no. of Jobs Job Creation Component is Indirect. Revitalization of PS is expected to result in more sustainable jobs especially by SMEs. However, programmes G2 & G3 may contribute to JCP. Private Sector G6 Private Sector Job Support and Job Creation 10.00 10.00 18 G7 Enhancing Institutional capacity of private sector representing bodies 5.00 5.00 12 Subtotal 115.00 75.00 40.00 73

5. Impact of proposed programmes on the socioeconomic conditions The reconstruction programmes will result in temporary job creation which will contribute to alleviating the impact of rising poverty, unemployment and dependency ratios amongst Gaza citizens. This will enable beneficiaries to earn and allocate scarce financial resources to household priorities other than food. The financial assistance will contribute towards maintaining the dignity of the most vulnerable. The accumulation of work experience will ultimately have a positive impact on economic recovery. The injection of income into a cash starved economy will also benefit local retailers and service providers indirectly. Food insecurity is expected to decrease and rehabilitation of agricultural lands will help small scale farmers to be able to grow crops and vegetables again. This will help their families to find a source of income as well as allow vulnerable families more access to different types of food. Some 15% of the total programme sums that will be spent on reconstruction will be directed into wages and salaries in which an expected 70 million will be paid for either skilled or unskilled labour. The following table illustrates the expected daily wages. The total number of man/days is expected to reach 5.7 million. Table (16): Average daily wage for labourer in Gaza Skilled Labour Avg. Daily Wage: 15.00 Unskilled Labour Avg. Daily Wage: 10.00 Indirect Daily Avg. Rate: 12.00 The following table shows the estimated cost by sector, to create each manday of temporary labour. It should be noted that for Rubble Removal and Public Buildings the unskilled and semi-skilled labour content is high. For the remaining infrastructure and agriculture sectors, a high percentage of the programme costs is for the purchase of material as well as for highly skilled labour as is the case with Energy and Water, Wastewater & Solid Waste. For Transport, the use of mechanised construction techniques leads to a lower percentage uptake of unskilled and semi-skilled labour (most notably for Regional Roads). Figure (40): Cost to create each man-day of work by Sector The private sector plays a particularly important role in economic development. In the aftermath of the recent conflict it is of immense importance that the private sector be prepared to assume its active role within the Palestinian economy through the creation of a special programme that focuses on its reform, activation and continued development. 74 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Sustainability Short-term projects in housing, transportation, private sector and local community development (access to better health and education services) will have a vital contribution to the overall socio-economic development in the most damaged areas. Regeneration of the private sector as a parallel activity to infrastructure programmes will allow some temporary jobs to be converted into more permanent employment opportunities as the economic situation continues to improve, thus contributing to a decrease in the number of poor families in the Gaza Strip. Basic pillars of interventions should include sustainable job creation and income generating programmes. End Note: The reconstruction efforts, guided by close monitoring by the International Community, are expected to respond to priority needs and will be of direct impact on future socio-economic development. In order for serious and effective interventions to take place, open access and effective PA presence in the Gaza Strip is essential. 6. Conclusions 1. Damage estimation: the total damage estimated by the mission for all sectors covered amounts to 514.3 million ($659.3 million). 2. Damage by area: damage was mainly concentrated in the Governorates of North Gaza (37%), Gaza (27%) and Rafah (17%). 3. Damage by sector: the results of the EU-led mission show that the means of subsistence of Gazans were severely affected: 84% of the damages were inflicted on three key sectors: housing, agriculture and the private sector. These areas play a key role in food security, economic development and employment of the Palestinian population. Housing: 100,000 Palestinians were displaced, as a result of the damage to over 15,000 housing units, of which 4,036 were totally destroyed by the Israeli attack. 11,512 were partially destroyed. Damage in this sector has been concentrated in the Governorates of North Gaza (35%), Middle Gaza (21%) and Gaza City (19%). Agriculture: over 46% of the agricultural land has been damaged or became inaccessible as a result of the latest conflict. 16% (1,986Ha) of this land was severely damaged (including bulldozing of land, irrigation networks and demolition of green houses, crops, orchards and livestock shelters). Moreover, as Israel extended the Buffer Zone within the Gaza borders, an additional 30% of the agricultural land has become inaccessible for farmers. The socio-economic impact of this in terms of employment and food security cannot be undermined: almost 30% of the agricultural workers lost their jobs (11,600); prices are on the rise while salaries are decreasing. Private Sector: more than 700 commercial, industrial and service businesses sustained direct damage. 268 were totally damaged. The industrial sector was the most affected, in particular the areas of construction, food processing and metal. Already seriously affected by the blockade, since 2007, 90% business closed, laying off 94% workers in the private sector. This obviously has a direct impact also on the banking sector. The recovery of this sector is essential as it plays a vital role in the economic development of the Gaza strip, including employment and now also, reconstruction. The mission analysed other sectors which were also seriously affected. Public Buildings, Water, Wastewater & Solid Waste, Energy, Transport and Telecommunications are crucial for a complete and long term reconstruction of the social and economic system in Gaza. Public Buildings: the latest conflict has brought about a further deterioration of basic services like education, health and security and consequently, a severe reduction in the quality of life of the population. Public services had been already functioning below acceptable standards prior to the conflict, due to the lack of resources and maintenance cause by the blockade. During the latest incursion, more than one third of all the public buildings were affected, including those providing education (245 kindergartens, schools, 75

colleges, universities), health care (23 hospitals and clinics) and municipal (48 buildings) services. Half of the students were affected by the damage to education facilities and one third of the Gaza population suffered from the disruption of health services. Energy: the electricity distribution system in seven large areas of the Gaza Strip was targeted during the conflict. Supply was restored quickly through temporary works but these require permanent repairs to ensure safety and efficiency. Gas and fuel oil supplies were largely unaffected but remain subject to strict import controls. Transport: the road infrastructure in some northern municipalities (Jabalya, Izbet Abed Rabo and Al Montar) was heavily targeted during the conflict and requires extensive reconstruction. Other roads have suffered severely from a lack of maintenance during blockades. The ports were largely unaffected while the international airport was again targeted despite its closure in 2001. Water, Wastewater and Solid Waste: the water and wastewater infrastructure has been heavily damaged in the latest conflict especially in the areas that witnessed ground military operations in North Gaza and Gaza City. 25 000m³ of raw sewage and 45,000 of sewage are daily discharged to the sea, creating pollution and an increased risk to public health. About 25,000 tonnes of waste which was accumulated in some transfer stations is waiting to be transferred to the landfills. While damage to solid waste facilities has not been as high as for water and waste water, its impact in public health and environment remains significant. Around 1 million Gazans have been denied access to water and sewage services during conflict, and 300 000 Gazans did not have access to solid waste collection services. Telecommunications: damage to telecommunications network was systematic, causing maximum disruption to both the local government and the community in general. Over 10,000 landline subscribers and 330,000 mobile subscribers were affected by the disruption of services. 4. Damage to EC and EU projects: The extent of such damage is limited ( 12.35 M in the latest conflict) in relation to the total damage during this conflict due to the situation in Gaza and in particular the Israeli access restrictions, which led the EC and EU Member States to keep small infrastructure investment in Gaza at low levels during the last years. 5. The recent conflict aggravated an already severe socio-economic crisis. Since the takeover of Hamas in June and the consequent Israeli tightening of restrictions of access of people and goods, all sectors in the Gaza strip had been seriously weakened. Half of the active population is unemployed; 80% is dependant on aid; 90% of businesses have closed; public health needs and risks increased while health services decreased as the facilities were damaged and in lack of supplies. Gaza is facing a major environmental crisis due to the severe deterioration of water and sanitation services, disruption of electricity and the need for rubble removal. The lack of access to basic services further worsened the daily life of Gazans and the population has lost a large degree of confidence in the future. The blockade continues today, impeding economic recovery or reconstruction and denying the population the needed access to basic services and acceptable living standards. Access is a precondition for any recovery activity in the Gaza Strip. 6. While the assessment of damages focused only at the damage resulting from the latest conflict, the identification of needs covers the most urgent requirements resulting also from the access restrictions and the consequent deterioration of the sectors. The experts proposed 41 programmes in 7 sectors for a total amount of 514.2 million. It is recommended that priority is given as follows: a) Short term: - Rubble removal is a priority as reconstruction cannot start if the rubble is not cleared. This operation should take place together with the clearance of UXOs, for the sake of safety. - Private sector as it is the key to economic recovery and job creation; 76 Final Report Damage Assessment and Needs Identification in the Gaza Strip

- Agriculture to reduce the risk of food insecurity; - Water, wastewater, and solid waste as there are a number of critical health related issues and a looming environmental crisis. - Housing is one the basic needs of the population, although Arab States have shown interest in financing this sector entirely. b) Medium term: - Public buildings, particularly schools, health care facilities, and buildings providing social services. c) For the longer term, infrastructure rehabilitation will be essential for economic development: - Energy, as there is no economic recovery without access to energy, for both the population and the private sector; - Roads, to increase access to social services and improve movement of persons and goods. 7. Programme implementation: As much as possible, programmes will be implemented through PEGASE, either directly, or in cooperation with international organisations or other institutions. Annexes 77

78 Final Report Damage Assessment and Needs Identification in the Gaza Strip

EuropeAid Annexes

Annex (A): List Of Contacts Organisation Name Title GOVERNMENT & LOCAL AUTHORITIES Coastal Municipalities Water Utility Hamdi Amteer Manager of Northern Area Coastal Municipalities Water Utility Maher Al Najjar Deputy Director Chief Engineer Coastal Municipalities Water Utility Monther Shublaq General Director of CMWU Gaza Municipality Abdel Men em Hmaid Deputy Head of Water Department Gaza Municipality Anwar Al Jundi Deputy Head for Studies Gaza Municipality Maher Salem Asst Manager, Project Prep and Development Gaza Municipality Mohamed Al-Halabi Director of International Cooperation Gaza Municipality Ramzi Ahel Deputy Head of Sanitation Department MA AN Development center (MAAN) Fadi El-Hindi Gaza Branch Director MA AN Development center (MAAN) Luay Alwuhaidi Project Development and Monitoring Officer MAS Institute for Research and Development Ibrahim Abu_Hantash Lead Researcher Ministry of Health Dr. Fuad El-Aissawi Director General of Primary Health Care Ministry of Health Dr. Medhat Abbas Director General of International Cooperation Department Ministry of Planning Ministry of Planning Bashar Jumaa Cairo Arafat Ministry of Planning Judeh Jamal PRDP Team Leader Ministry of Planning Taghreed Hithnawi Director General, Infrastructure Municipal Development and Lending Fund Mutazz Muhussein Gaza representative Palestine Central Bureau of Statistics Khaldan Radwan Gaza Director Palestine Central Bureau of Statistics Mohamed Qahman Director Public Relations - Gaza Palestine Central Bureau of Statistics Suha Kanaan, Amina Khaseeb PENRA - Gaza Hala Al Zebda Office Manager PENRA - Gaza Kenan Abed Vice General Manager PENRA - Gaza Zeyad El Gussain Technical Assistant to Vice Gen Manager PENRA - Ramallah Abdel-Kareem Abdeen Director General Finance & Admin PENRA - Ramallah Hussein Nabih General Director Distribution and Generation PENRA - Ramallah Jamal Abu Ghosh Director Palestine Monetory Agency Abdel-Majeed Al Mashharawi Director Public Relations Palestine Monetory Agency Mohamed El Ejleh Public Relations Palestinian Agricultural Relief Committee (PARC) Ahmed Sourani Director of Projects & External Relations Dept. Palestinian Industrial Estate and Free Zone Association (PIEFZA) Palestinian National Authority Office of The President - Job Creation Program Palestinian National Authority Office of The President - Job Creation Program Ismael Abu AlEla Badr El-Hussini Rajeh Abbas General Manager Job Creation Program General Manager Project Coordinator Palestinian Water Authority Ribhi El-Shaikh Deouty Chairman 80 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Organisation Name Title Palestinian Water Authority Sadi Ali Director of Project Manag. Unit Palestinian Water Authority Shaddad Al Attili Head Solid Waste Management Council-Gaza Middle Khalil Abu Jamos Director Solid Waste Management Council-Gaza North Mohamed El Helou Director The Palestinian Agricultural Relief Committees (PARC) Hany Siam Project Coordinator Union of Agricultural Work Committees Alaa Al-Habl Field engineer Union of Agricultural Work Committees Hany Al-Atar Field engineer Union of Agricultural Work Committees Hassan Qwareh Project Coordinator Union of Agricultural Work Committees Jamile Al-Massry Beit Lahia officer Union of Agricultural Work Committees Mohammed El-Bakri Executive Director Wadi Gaza Municipality Salem Abu Iyada Mayor INTERNATIONAL ORGANISATIONS ACF-Spain Hossam El-Madhoun Office manager ACF-Spain Mustafa El-Kahlout Project Officer Denmark/DANIDA Mads Mayerhofer Head of Dev Cooperation ECTAO Jan van der Ploeg Attache ECTAO Roy Dickinson Head of Operations ECTAO Regis Meritan Head of sector for Infrastructure ECTAO Fabienne Bessonne Head of sector for Social Affairs Facility for New Market Development [FNMD] DAI Palestine Sharif M. Kishawi Account Manager / Gaza Manager FAO Mohammed El-Shattali Deputy Project manager France Development Agency/AFD Philippe Lecrinier Director France Consulate General - Jerusalem Jacqueline Coulon-Lascaux Attache for Social and Humanitarian cooperation German Development Cooperation Stephan Roeken Head of Dev cooperation GTZ Palestinian Territory Andrea Joras Country Director IMG Dariusz Kobus Team Leader IMG Hanni Boullata Data Manager IMG Judith Selman Programme Manager IMG Kurt Hansen Planner Job Creation Program (JCP) Bader Al Husaini Gaza Manager Job Creation Program (JCP) Rajeh Abbas Project Officer Mine Action Group (MAG) Mark Buswell Team Leader Municipal Development & Lending Fund Arch. Abdel Mugni Nofal Director General Municipal Development & Lending Fund Dr. Iyad Rammal Director General of Operations Oxfam Allaa Aid Project Officer Oxfam Elena Qleibo Project Officer Oxfam Mary Kudla Gaza Office Manager 81

Organisation Name Title Palestinian European Guarantee Fund John Khoury Director Sweden/SIDA Maher Daoudi Deputy Head, Development Cooperation Sweden/SIDA Johan Brisman Consultant Spain/AECID Jesús Tomé Sr. Programme Manager Agriculture & Economic Develpoment Spain/AECID Lorea Uribarri Head of Spanish Technical Cooperation Office Spain/AECID Sandra Romero Ruiz Project Manager Azahar programme and Agriculture Support to Municipal Development and Management Khalil K Ismail Project Advisor The World Bank West Bank & Gaza Country Office Meskerem Brhane Sr. Social Specialist UN FAO Luigi Damiani Senior Project Coordinator UN FAO Jerusalem Erminio Sacco Chief Technical Adviser - Food Security UN FAO Jerusalem Nathalie Wirt Deputy Project Coordinator UNDP Gaza Jehad Al-Khatib Field Engineer UNDP Gaza Amran El-Kharouby Field Engineer Gaza UNDP Gaza Deya El Baba Office Engineer UNDP Gaza Iman Hussani Chief Engineer UNDP Gaza Khaled Abdel Shafi Head of UNDP Gaza UNDP Gaza Saleh Al Hams Project Manager UNDP Gaza Tamer Qarmout Programme Management Officer UNDP Gaza Vanessa Farr Social and Gender Issues Officer UNDP Gaza Walid Hasna Engineering Field Team Leader UNDP Gaza Yannick Guegan Early Recovery Needs Assessment Advisor UNDP Jerusalem Roberto Valent Deputy Special Representative UNMAS Kieiri Ruru Programme Manager UNRWA Abul Karim M Jouda Chief, Special Environmental Health Programme UNRWA Christer Nordahl Deputy Director UNRWA Operations, Gaza UNRWA Diya Sheik OiC Maintenance Division, Gaza UNRWA Maher Safi Job Creation Program Manager UNRWA Zuhdi Salah Field Sanitary Engineer World Bank Eileen Murray Representative, Palestine World Bank Samira Hillis Representative, Gaza Abu Halima Petrol Station Nahid Abu Halima Business Owner Abu Sita Factory Jehad Abu Sita General Manager Al-Emteyaz Ready Mixed Concrete Sabri Abu Daga Deputy Director Bank of Palestine Alaa Al-Redwan Deputy General Manager Bank of Palestine Mona Al Sarraf Microfinance Manager Credit Devision Cold Store Mohammed Al-Atar The Owner Daloul Plastic Factory Taha Daloul Business Owner 82 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Organisation Name Title Esleem Factory for Block Sofian Sleem Partner GEDCO Ltd Nedal Toman Project Manager GEDCO Ltd Osama Daboor External Relations Unit GEDCO Ltd - Ramallah Souhail Sekek General Director GEDCO Ltd Wael Ahmed Studies and Documentation Branch Home Engineering Unltd. Eng. Ali D. Nakhala Technical Manager JAWWAL Bassam Al Odeini Engineering Field Manager, Gaza Land-Beit Lahia Nabeel Abu Halima The Owner Technical Engineering Consulting Co. Eng. Samir Elias Manneh Managing Director (Pres. of Gaza Engineering Association) PRIVATE SECTOR REPRESENTING BODIES Construction Industries Union Fared Zakook Executive Manager Contractors Union - Ramallah Eng. Adel Odeh Chairman Gaza Chamber of Commerce Maher Tabba Director Palestinian Businessmen Association Moahmmed Moshtaha Executive Manager Palestinian Chamber of Commerce, Industry and Agriculture for Gaza Governorates (PCCG) Maher Al Taba Public Relations Manager Palestinian Contractors Union Moahmed J. Husaini Executive Manager Palestinian Federation of Industries (PFI) Amr Hamad Gaza Executive Manager Palestinian IT Association of Companies (PITA) Heda Saqqa Membership Manager Palestinian Shipper Council Yousef Shaath Regoinal Manager Paltrade Ali Abu Kumail Trade Development Manager Petrol Stations Owners Association Mahmoud Khazandar Vice Chairman OTHERS Al Deira Hotel Arab Center for Agriculture Developmment Issa Barghout Projects coordinator Beit Lahia Development Association Nidal Al Mosallami Chairman Jerusalem Ambassador Hotel NGO Development Centre Alaa Ghalayini Gaza Programme Manager Palestinian Centre for Human Rights Jabr Wishah Deputy Director Palestinian Hydrology group Nahed Abu Daya Public Relationofficer Palestinian Ngo s Network «PNGO» Amjad Shawa Director Reyada for lending and financial services Atef Owda Gaza Branch Manager The Palestinian Agricultural Relief Committees (PARC) Abd Al-Karim Ashour Gaza Director The Palestinian Network for Small & Microfinance Samira Abu Aisha Gaza Coordinator 83

Annex (B) : Programmes Fiches by Sector Separate printed document 84 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Annex (C): contained in the attached CD LIST OF ANNEXES General Annex General Raw Damages Data UNDP Assessment Data folder General Verification Analysis General Programme Definition GERRP folder GERRP - Sharm El Sheik version GERRP Final Version Socio-Economic Matrix - Cross Sectors Analysis of Proposed Prog. EU Projects Reports Received folder EU projects - damages - updated 13 March 09 Photographs Original Photos Rubble Original Photos Public Building Original Photos Energy Original Photos Water, Sanitation and Solid Waste Original Photos Transport Original Photos Agriculture Original Photos Private sector Original Photos Telecommunications Original Photos Housing Rubble Removal Annex Raw Damages Data IDB Rubble Proposal Rubble Circumstances in the Gaza Strip after the Last 22 days Israeli Rubble Removal Proposal-draft 01-25-2009 Verification Analysis Rubble estimate Programme Definition 85

Public Buildings Annex Raw Damages Data MDLF folder MOEHE folder MOH folder Municipalities folder Verification Analysis Damages Gaza Schools-MOEHE Ramallah-Gaza Verification UNDP vs MOEHE Ramallah Gaza Programme calculation Public Buildings Energy Annex Programme Definition Public Buildings unit price analysis Raw Damages Data Damages Map Damages Materials in All Governorates Gaza Demand and Deficit_60MW Verification Analysis Programme Definition Gaza Demand and Deficit_60MW SLD GWSS SLD GWSS 220Kv Water and Wastewater Annex Raw Damages Data CMWU Damage Map CMWU Damage Report CMWU Damage Details Damage Assessment Data for W& WW Gaza Municipality Verification Analysis CMWU Damage Details Water-wastewater damage by Governorate Programme Definition PWA Programmes folder WWW Cost Estimation Solid Waste Annex Raw Damages Data 09-01-27 Damage Report of SWMCs-WS 86 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Damage Data for SW Gaza Municipality UNDB solid waste Damage assessment UNDP SW Damage report Verification Analysis 09-02-25 SW Damage Analysis Programme Definition Solid waste-rafah needs Landfill Cost Estimation Gaza Municipality SW Needs Gaza Municipality Existing Equipments Cost Analysis of Landfill cost Al Zahra, Mughraqa, Wadi Gaza needs 09-03-11 EUNIDA Equipment Needs Assessment Transport Annex Raw Damages Data Verification Analysis Programme Definition Final Gaza Assessment report_iyad Road Rehab Municipalities Typical road details Agriculture Annex Raw Damages Data NGO Data Collection Forms Folder UNDP Damages Assessment Data UNDP Data MOA Damages Data-Summary Verification Analysis EUNIDA Total Damage Estimates Site visits folder Programme Definition Agriculture Rehabilitation Estimate-Final FAO Agriculture Sector Report dated 18 February 2009 87

MOA TA Proposal in Arabic MOA TA Proposal in English OCHA Agriculture Assessment report dated 2 March 2009 PARC - AGRICULTURE PAPER FINAL dated 28 February 2009 UNDP Cost Data Summary in English of MOA early recovery documents MOA Priorities Folder Private Sector Annex Raw Damages Data Damage Assessment Data Sheet folder PalTrade folder PCCG Doc folder PITA Doc folder PSCC folder Other folder Verification Analysis Analysis folder Site visits folder Programme Definition PIEFZA folder Credit Guarantee Scheme donor appeal - Gaza GAZA PROPOSED PROJECTS_March 4-AK Housing Annex Raw Damages Data GERRP Data folder MPWH folder UNRWA Cost Data folder 090211_InfrastructureFinal 170209 090218_InfrastructureFinal Infrastructure Methodology 050209 Infrastructure sector 60209 8.45 Verification Analysis UNDP Data Collection Forms folder 88 Final Report Damage Assessment and Needs Identification in the Gaza Strip

Breakdown UNDP Housing GERRP housing cost analysis Housing calculations by Governorate Housing unit price analysis Ministry of Public works and Housing -E summary - Gaza DA UNDP Cost Break Down Programme Definition Telecommunications Annex Raw Damages Data Paltel Details Paltel Details 2 Paltel warehouse PG_DAMAGE_Report Verification Analysis Programme Definition Socio-Economic Annex Raw Damages Data Demographic Statistics on Gaza - PCBS (Arabic. English) Gaza Age and Gender - PCBS (Arabic) Indirect Costs of Conflict - MoNE (Arabic) Monitor Q14 Arabic - MAS.PMA (Arabic) Monitor Q15 Arabic - MAS.PMA (Arabic) Population Statistics - PCBS (Arabic) PRDP 2008-2010 (English) Verification Analysis Programme Definition JCC Calculations - SE Socio-Economic Matrix - Cross Sectors Analysis of Proposed Programme Terms of Reference (ToR) 89

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