5 oct 2013
The occupied Palestinian territory (OPT) loses, by preliminary estimates, some US$300 million annually in "leakage" of customs, purchase and value-added taxes which are not transferred to the Palestinian treasury by Israel, UNCTAD's Report on Assistance to the Palestinian People says. The recently released report said, “UNCTAD's report focuses only on fiscal leakage from the revenue lost from taxes on direct and indirect imports and on smuggled goods into the OPT from or via Israel.
According to the Protocol on Economic Relations, or Paris Protocol, signed in 1994 by Israel and the Palestine Liberation Organization, leaked revenue from taxes on direct and indirect imports is supposed to be transferred to the Palestinian Authority. The report says that an estimated unpaid taxes on smuggled goods arriving from Israel represent 17 per cent of total Palestinian tax revenues, or about $305 million in 2012, enough to cover 18 per cent of the Palestinian Authority (PA) wage bill.
If this "leakage" could be curtailed, and the money transferred from the Israeli treasury to the Palestinian treasury, the resulting increase in revenue would give the PA greater fiscal policy space and help to expand economic growth and employment. The gross domestic product of the OPT would increase by 4 per cent, and employment would increase by 10,000 jobs per year, the report contends.
The report stresses, however, that this fiscal loss is from one source only and does not include the revenue leakages from many other sources, including taxes levied by Israel on incomes of Palestinians working in Israel and settlements; seigniorage revenue loss from using the Israeli currency (shekel) in the OPT; revenue loss from under-pricing imported goods in invoices due to lack of Palestinian control over borders and access to proper trade data; revenue loss related to lack of control over land and natural resources; financial resources loss related to goods and services imported through the Palestinian public sector (petroleum, energy, and water); and fiscal loss as a result of the smaller tax base caused by the decimation of the productive base and loss of natural resources to occupation.
The report estimates that 39 per cent of Palestinian imports from Israel originate in third countries, cleared as Israeli imports before being sold in the OPT as if they had been produced in Israel. Customs revenue from these "indirect imports" is collected by the Israeli authorities but not transferred to the PA. Smuggling is another source of significant fiscal revenue loss. Where the smuggled goods are produced in Israel, the PA loses value-added tax (VAT) and purchase tax revenue. However, where goods are produced in a third country, tariff revenue is also leaked along with VAT and purchase tax revenue. The value of goods smuggled from Israel into the OPT is hard to estimate, but may make up from 25 to 35 per cent of the OPT's total imports, the report says.
The report makes recommendations for reducing fiscal resource leakage. These include proposed changes to the Paris Protocol, so that it is a more balanced framework "consistent with Palestinian sovereignty needs for economic, fiscal and policy independence." The report also recommends that the PA should have full access to all data related to imports from or via Israel when the final destination of goods is the OPT; that existing time restrictions be abolished which currently prevent the PA from claiming due revenue; that Palestinian dependency on Israel be ended by removing barriers to trade with countries other than Israel; that Palestinian custom brokers be allowed access to Israeli ports and crossing points so that they can monitor customs procedures; and that the PA be provided with financial and human resources needed to strengthen its customs administration capacity.”
According to the Protocol on Economic Relations, or Paris Protocol, signed in 1994 by Israel and the Palestine Liberation Organization, leaked revenue from taxes on direct and indirect imports is supposed to be transferred to the Palestinian Authority. The report says that an estimated unpaid taxes on smuggled goods arriving from Israel represent 17 per cent of total Palestinian tax revenues, or about $305 million in 2012, enough to cover 18 per cent of the Palestinian Authority (PA) wage bill.
If this "leakage" could be curtailed, and the money transferred from the Israeli treasury to the Palestinian treasury, the resulting increase in revenue would give the PA greater fiscal policy space and help to expand economic growth and employment. The gross domestic product of the OPT would increase by 4 per cent, and employment would increase by 10,000 jobs per year, the report contends.
The report stresses, however, that this fiscal loss is from one source only and does not include the revenue leakages from many other sources, including taxes levied by Israel on incomes of Palestinians working in Israel and settlements; seigniorage revenue loss from using the Israeli currency (shekel) in the OPT; revenue loss from under-pricing imported goods in invoices due to lack of Palestinian control over borders and access to proper trade data; revenue loss related to lack of control over land and natural resources; financial resources loss related to goods and services imported through the Palestinian public sector (petroleum, energy, and water); and fiscal loss as a result of the smaller tax base caused by the decimation of the productive base and loss of natural resources to occupation.
The report estimates that 39 per cent of Palestinian imports from Israel originate in third countries, cleared as Israeli imports before being sold in the OPT as if they had been produced in Israel. Customs revenue from these "indirect imports" is collected by the Israeli authorities but not transferred to the PA. Smuggling is another source of significant fiscal revenue loss. Where the smuggled goods are produced in Israel, the PA loses value-added tax (VAT) and purchase tax revenue. However, where goods are produced in a third country, tariff revenue is also leaked along with VAT and purchase tax revenue. The value of goods smuggled from Israel into the OPT is hard to estimate, but may make up from 25 to 35 per cent of the OPT's total imports, the report says.
The report makes recommendations for reducing fiscal resource leakage. These include proposed changes to the Paris Protocol, so that it is a more balanced framework "consistent with Palestinian sovereignty needs for economic, fiscal and policy independence." The report also recommends that the PA should have full access to all data related to imports from or via Israel when the final destination of goods is the OPT; that existing time restrictions be abolished which currently prevent the PA from claiming due revenue; that Palestinian dependency on Israel be ended by removing barriers to trade with countries other than Israel; that Palestinian custom brokers be allowed access to Israeli ports and crossing points so that they can monitor customs procedures; and that the PA be provided with financial and human resources needed to strengthen its customs administration capacity.”
Palestinians line up to get their salaries
Palestinian Authority (PA) came in the penultimate rank on the index showing the extent of equitable distribution of national income between officials and individuals, with an average salary of 36 thousand dollars, 24 times the annual per capita income.
According to statistics published by global Gini Index, the Palestinian Authority's rank indicates the presence of a remarkable inequality in income levels and the absence of equitable distribution within the Palestinian population.
Palestinian MP makes $ 3,000 per month, and the president makes twice this amount in a state whose GPD rate per capita does not exceed $ 1,400 per year.
Palestinian Authority (PA) came in the penultimate rank on the index showing the extent of equitable distribution of national income between officials and individuals, with an average salary of 36 thousand dollars, 24 times the annual per capita income.
According to statistics published by global Gini Index, the Palestinian Authority's rank indicates the presence of a remarkable inequality in income levels and the absence of equitable distribution within the Palestinian population.
Palestinian MP makes $ 3,000 per month, and the president makes twice this amount in a state whose GPD rate per capita does not exceed $ 1,400 per year.
The salaries of all Palestinian state officials in presidential, parliamentary or ministerial positions remain uninterrupted until death.
The Palestinian Authority is facing a deficit of more than one billion dollars in public budget. It was forced over the past few months to borrow from local banks to pay its employees on whom it expend $ 150 million per month.
It also needs almost a similar amount to meet their obligations to provide basic services to the Palestinians.
The PA has been looking for some time for a financial support of $ 550 million to cover its budget deficit.
Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution.
The Palestinian Authority is facing a deficit of more than one billion dollars in public budget. It was forced over the past few months to borrow from local banks to pay its employees on whom it expend $ 150 million per month.
It also needs almost a similar amount to meet their obligations to provide basic services to the Palestinians.
The PA has been looking for some time for a financial support of $ 550 million to cover its budget deficit.
Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution.
1 oct 2013
The Ministry of Education and Higher Education stated that the continued siege on the Gaza Strip and the fuel crisis have negatively affected the educational process in Gaza. The ministry said in a report on Monday that 500 thousand students in government, UNRWA, and private schools and nearly 130 thousand university students suffer a lot to reach their schools and universities, pointing to the employees' suffering to reach their work places as well.
Dr Anwar Buraawi, the Ministry's Assistant Undersecretary, said that the crisis also affected the disabled students, referring to the two government schools for disabled students in the Gaza Strip.
He pointed out that the students who live on the border areas particularly who are forced to walk for long distances to reach their schools which would affect their educational attainment.
The construction of 20 schools has been suspended due to the continued siege on the strip, he confirmed, noting that the donation for the establishment of three other schools was also stopped.
For his part, Dr. Khalil Hammad General Manager of university education at the Ministry of Education, said that the continued siege paralyzes the university education on two levels.
On the one hand, the fuel shortage affects students' transportation to their universities. On the other hand, the power cuts affect the educational programs that rely on the power supply, such as computing and science laboratories.
He also referred to the students who were stranded on the border crossing deprived from reaching their universities abroad.
The Ministry of Education and Higher Education in the Gaza Strip called on international community and human rights institutions and brotherly countries to intervene to lift the siege on the Gaza Strip.
Dr Anwar Buraawi, the Ministry's Assistant Undersecretary, said that the crisis also affected the disabled students, referring to the two government schools for disabled students in the Gaza Strip.
He pointed out that the students who live on the border areas particularly who are forced to walk for long distances to reach their schools which would affect their educational attainment.
The construction of 20 schools has been suspended due to the continued siege on the strip, he confirmed, noting that the donation for the establishment of three other schools was also stopped.
For his part, Dr. Khalil Hammad General Manager of university education at the Ministry of Education, said that the continued siege paralyzes the university education on two levels.
On the one hand, the fuel shortage affects students' transportation to their universities. On the other hand, the power cuts affect the educational programs that rely on the power supply, such as computing and science laboratories.
He also referred to the students who were stranded on the border crossing deprived from reaching their universities abroad.
The Ministry of Education and Higher Education in the Gaza Strip called on international community and human rights institutions and brotherly countries to intervene to lift the siege on the Gaza Strip.
25 sept 2013
The Palestinian ministry of transport in Gaza said that there are contacts underway with the Egyptian general petroleum company to resolve the fuel crisis, which rendered thousands of cars out of service. A spokesman for the ministry told the Palestinian information center (PIC) that the government is trying to get fuel shipments for the transportation sector, which is considered the backbone of life and sustain thousands of Gazan families.
He affirmed that the fuel crisis seriously affected the economic and humanitarian situation in Gaza.
The fuel crisis aggravated after the Egyptian authorities closed the Rafah border crossing and destroyed most of the border tunnels, which paralyzed the life in Gaza and caused thousands of cars and public vehicles to stop working.
The crisis also forced some drivers of public buses and vehicles to use a kind of cooking oil to operate them.
He affirmed that the fuel crisis seriously affected the economic and humanitarian situation in Gaza.
The fuel crisis aggravated after the Egyptian authorities closed the Rafah border crossing and destroyed most of the border tunnels, which paralyzed the life in Gaza and caused thousands of cars and public vehicles to stop working.
The crisis also forced some drivers of public buses and vehicles to use a kind of cooking oil to operate them.
Despite recent European Union (EU) coverage of some of the Palestinian Authority (PA) debt to the East Jerusalem Hospitals (EJHs) by over $17 million, the Hospitals are still facing major cash flow problems as a result of accrued debt from the PA for specialized patient care, totaling $24.15 million as of July 31,the Jerusalem office of the World Health Organization (WHO) said in a press release on Tuesday.
By the end of September, this debt will exceed $28 million.
The PA's debt to the EJHs has persisted over the last year as donor support to the PA has decreased.
According to the press release, the East Jerusalem Hospitals Network (EJHN) includes six facilities: Makassed Charitable Hospital, Augusta Victoria Hospital, St. Joseph Hospital, St. John Eye Hospital, Palestine Red Crescent Society Hospital and Princess Basma Rehabilitation Center, which serve as the main centers for specialized care within the Palestinian health system.
Patients needing services and procedures that are not available in the West Bank and Gaza are referred for treatment in the EJHN facilities by the Palestinian Ministry of Health (MOH).
In 2012, a total of 25,381 West Bank and Gaza patients were referred by MoH to East Jerusalem, representing over 45% of all MoH referrals, and more than half of the EJHN caseload.
The recent EU support to the PA has enabled the PA to provide remuneration to the EJHs for the services provided in 2012. Some of the EJHs also received payment for part of 2013. However, the PA debt to the EJHs continues to accumulate given the PA's current lack of financial capacity to cover costs for patients referred for treatment in the EJHs, which would reach $28 million.
This continuous debt has negatively impacted hospital operations causing hospitals to request credit lines, delay payment to vendors and postpone staff salaries, the press release said.
The EJHN and its six health facilities have been supported by the EU and the World Health Organization (WHO) for the last four years for quality improvement and institutional development. The achievements of this program will also be threatened if the financial crisis continues.
The EJHN is seeking urgent financial assistance to sustain the services of the six hospitals. It is calling on donors to support the PA to meet its obligation towards the EJHs - and requesting that funds be allocated directly to the PA (or donated directly to the Hospitals) to be used specifically for paying off PA debts to the EJHs, the press release concluded.
By the end of September, this debt will exceed $28 million.
The PA's debt to the EJHs has persisted over the last year as donor support to the PA has decreased.
According to the press release, the East Jerusalem Hospitals Network (EJHN) includes six facilities: Makassed Charitable Hospital, Augusta Victoria Hospital, St. Joseph Hospital, St. John Eye Hospital, Palestine Red Crescent Society Hospital and Princess Basma Rehabilitation Center, which serve as the main centers for specialized care within the Palestinian health system.
Patients needing services and procedures that are not available in the West Bank and Gaza are referred for treatment in the EJHN facilities by the Palestinian Ministry of Health (MOH).
In 2012, a total of 25,381 West Bank and Gaza patients were referred by MoH to East Jerusalem, representing over 45% of all MoH referrals, and more than half of the EJHN caseload.
The recent EU support to the PA has enabled the PA to provide remuneration to the EJHs for the services provided in 2012. Some of the EJHs also received payment for part of 2013. However, the PA debt to the EJHs continues to accumulate given the PA's current lack of financial capacity to cover costs for patients referred for treatment in the EJHs, which would reach $28 million.
This continuous debt has negatively impacted hospital operations causing hospitals to request credit lines, delay payment to vendors and postpone staff salaries, the press release said.
The EJHN and its six health facilities have been supported by the EU and the World Health Organization (WHO) for the last four years for quality improvement and institutional development. The achievements of this program will also be threatened if the financial crisis continues.
The EJHN is seeking urgent financial assistance to sustain the services of the six hospitals. It is calling on donors to support the PA to meet its obligation towards the EJHs - and requesting that funds be allocated directly to the PA (or donated directly to the Hospitals) to be used specifically for paying off PA debts to the EJHs, the press release concluded.
24 sept 2013
The World Bank Tuesday approved a $10 million grant that will scale up a current Cash Transfer Project and benefit 5,000 Palestinian households living in extreme poverty in the Palestinian territories, according to a World Bank press release.
Cash transfer programs have been key in providing timely emergency assistance to Palestinian families suffering from economic hardships.
The statement added that this additional grant will target around 5,000 families using a transparent poverty-targeting mechanism that verifies beneficiaries' eligibility through regular monitoring and re-certification.
It will also support continuous efforts aimed at reforming the cash transfer program.
"The existing project has become a critical safety net in the Palestinian Territories and is fully integrated in the wider Palestinian Authority's social assistance system," said Samira Hillis, World Bank Senior Operations Officer. "Scaling up assistance through the ongoing project will bolster successful interventions, enhance program coverage and reach out to additional households living in extreme poverty."
It's worth mentioning that the Cash transfer Program, supported by the World Bank, replaced an earlier complex web of social protection initiatives and more than doubled the number of beneficiaries reached from 2010 to 2012.
Up to 2013, it reached over 100,000 poor households covering more than half of the poorest, and devoting two thirds of its resources to the extremely poor.
The Bank also used its technical expertise to coordinate donors' efforts for a greater collaboration in the distribution and evaluation of benefits.
"The lack of economic opportunities and high unemployment rates remain major problems in the Palestinian Territories," said Mariam Sherman, World Bank Country Director for the West Bank and Gaza. "This program supports the poorest and most vulnerable Palestinians. The provision of basic safety nets has a significant impact on the lives of recipients by providing income and fostering social inclusion.
Cash transfer programs have been key in providing timely emergency assistance to Palestinian families suffering from economic hardships.
The statement added that this additional grant will target around 5,000 families using a transparent poverty-targeting mechanism that verifies beneficiaries' eligibility through regular monitoring and re-certification.
It will also support continuous efforts aimed at reforming the cash transfer program.
"The existing project has become a critical safety net in the Palestinian Territories and is fully integrated in the wider Palestinian Authority's social assistance system," said Samira Hillis, World Bank Senior Operations Officer. "Scaling up assistance through the ongoing project will bolster successful interventions, enhance program coverage and reach out to additional households living in extreme poverty."
It's worth mentioning that the Cash transfer Program, supported by the World Bank, replaced an earlier complex web of social protection initiatives and more than doubled the number of beneficiaries reached from 2010 to 2012.
Up to 2013, it reached over 100,000 poor households covering more than half of the poorest, and devoting two thirds of its resources to the extremely poor.
The Bank also used its technical expertise to coordinate donors' efforts for a greater collaboration in the distribution and evaluation of benefits.
"The lack of economic opportunities and high unemployment rates remain major problems in the Palestinian Territories," said Mariam Sherman, World Bank Country Director for the West Bank and Gaza. "This program supports the poorest and most vulnerable Palestinians. The provision of basic safety nets has a significant impact on the lives of recipients by providing income and fostering social inclusion.
Palestinian Central Bureau of Statistics (PCBS) and Palestine Monetary Authority (PMA) announced in a press release, the preliminary results of the Palestinian Balance of Payments – Second Quarter 2013.
The Balance of Payments (BOP) is an account measuring transactions between residents and non-residents in a given period. It is considered to be the peak of efforts in preparing systematic economic statistics that are necessary for observing economic performance in general and for deriving essential data used in compiling the Rest of the World Account as part of the Palestinian National Accounts. BoP consists of two main accounts, the Current Account and the Capital and Financial Account.
The main findings of the preliminary results of BoP for the Second quarter of 2013 are including:
The incessant deficit of the Current Account amounted to USD 595.7 million (19.8 percent of the GDP at current prices for the 2nd quarter of 2013) with a dramatic increase of USD 355.5 million compared to the previous quarter. The deficit of Current Account was caused mainly by the deficit in the Trade Balance of goods which was USD 1,226.9 million (40.8 percent of the GDP at current prices) with an increase of 10.9 percent compared to the previous quarter.
The deficit in Services Balance amounted to USD 99.8 million with an increase of 2.8 percent compared to previous quarter. This increase was caused by the increase in imports of travel and other business services.
The surplus in Income Balance (compensations of employees and investments income) amounted to USD 310.5 million with an increase of 6.0 percent compared to the previous quarter, this surplus was due to a surplus in Compensations of Employees working in Israel that reached USD 285.1 million. While, the received investments income amounted to USD 30.2 million was mainly caused by the interest received on the Palestinian deposits in banks abroad.
According to the Current Transfers, the surplus value amounted to USD 420.5 million with a decrease of 37.2 percent compared to the previous quarter. The donors' current transfers was 41.3 percent of total value of receipts from abroad. And the current transfers to other sectors from abroad other than donors contributed by 57.0% of total current transfers from abroad
The surplus value of Capital and Financial Account amounted to USD 646.8 million was mainly caused by the surplus in Financial Account (mostly foreign currency in banks funds and the deposits of palestinian institiotions deposited abroad) amounted to USD 587.7 million.
The changes on Reserve Assets (decreased) amounted to USD 17.4 million at PMA.
The Balance of Payments (BOP) is an account measuring transactions between residents and non-residents in a given period. It is considered to be the peak of efforts in preparing systematic economic statistics that are necessary for observing economic performance in general and for deriving essential data used in compiling the Rest of the World Account as part of the Palestinian National Accounts. BoP consists of two main accounts, the Current Account and the Capital and Financial Account.
The main findings of the preliminary results of BoP for the Second quarter of 2013 are including:
The incessant deficit of the Current Account amounted to USD 595.7 million (19.8 percent of the GDP at current prices for the 2nd quarter of 2013) with a dramatic increase of USD 355.5 million compared to the previous quarter. The deficit of Current Account was caused mainly by the deficit in the Trade Balance of goods which was USD 1,226.9 million (40.8 percent of the GDP at current prices) with an increase of 10.9 percent compared to the previous quarter.
The deficit in Services Balance amounted to USD 99.8 million with an increase of 2.8 percent compared to previous quarter. This increase was caused by the increase in imports of travel and other business services.
The surplus in Income Balance (compensations of employees and investments income) amounted to USD 310.5 million with an increase of 6.0 percent compared to the previous quarter, this surplus was due to a surplus in Compensations of Employees working in Israel that reached USD 285.1 million. While, the received investments income amounted to USD 30.2 million was mainly caused by the interest received on the Palestinian deposits in banks abroad.
According to the Current Transfers, the surplus value amounted to USD 420.5 million with a decrease of 37.2 percent compared to the previous quarter. The donors' current transfers was 41.3 percent of total value of receipts from abroad. And the current transfers to other sectors from abroad other than donors contributed by 57.0% of total current transfers from abroad
The surplus value of Capital and Financial Account amounted to USD 646.8 million was mainly caused by the surplus in Financial Account (mostly foreign currency in banks funds and the deposits of palestinian institiotions deposited abroad) amounted to USD 587.7 million.
The changes on Reserve Assets (decreased) amounted to USD 17.4 million at PMA.
23 sept 2013
The donor countries are schedualed to hold a meeting, on the sidelines of the UN General Assembly meetings that are taking place in New York, Tuesday.
The Palestinian delegation, headed by Prime Minister Rami al-Hamdullah, the Economic Affairs minister and the Finance minister, is supposed to provide the European donor countries with a detailed report about the economic situation, in seeking to obtain a grant of $500 million for the Palestinian Authority's expenses and needs.
The report includes a number of projects that the PA would like to implement, including: the establishment of an airport in the West Bank, improving the road and transportation sector, in addition to agricultural and industrial projects that would help to improve and increase the Local Gross Domestic Product (GDP).
The Palestinian delegation, headed by Prime Minister Rami al-Hamdullah, the Economic Affairs minister and the Finance minister, is supposed to provide the European donor countries with a detailed report about the economic situation, in seeking to obtain a grant of $500 million for the Palestinian Authority's expenses and needs.
The report includes a number of projects that the PA would like to implement, including: the establishment of an airport in the West Bank, improving the road and transportation sector, in addition to agricultural and industrial projects that would help to improve and increase the Local Gross Domestic Product (GDP).
21 sept 2013
The Palestinian minister of economy says that losses resulting from Egypt military destruction of tunnels along its border with the besieged Gaza Strip have exceeded $250 million.
Alaa al-Rafati told local media on Friday that the humanitarian crisis in Gaza has entered a “critical and dangerous phase” since Egypt has closed the Rafah border crossing and is destroying the tunnels serve as a lifeline for Gaza's population of over 1.7 million.
According to al-Rafati, the Egyptian army has destroyed nearly 126 border tunnels, which have been used to get basic goods and medicines into Gaza during years of suffocating Israeli blockade.
Al-Rafati further called on the Egyptian government to reopen the Rafah crossing and allow the movement of people and goods through it.
More than 80 percent of the tunnels are no longer functional following their destruction by the Egyptian security forces.
Over the past months, Egypt has stepped up its crackdown on the supply tunnels leading into Gaza, which bring basic supplies to the Gazans in the besieged enclave. Egyptian army forces flooded several of tunnels in February.
Since the ouster of Egypt’s President Mohamed Morsi on July 3, the Egyptian military has launched a campaign to destroy the tunnels, preventing the people in Gaza from bringing in most of their basic goods like construction materials, food, and fuel.
The destruction of the tunnels has reportedly led to an increase in the price of fuel and other commodities in the coastal territory. Palestinians have to wait in long lines at gas stations and face daily power outages that last up to 14 hours.
Several human rights organizations and civil groups have criticized the Egyptian army for preventing the people in Gaza from accessing most of their basic goods like construction materials, food, and fuel.
Alaa al-Rafati told local media on Friday that the humanitarian crisis in Gaza has entered a “critical and dangerous phase” since Egypt has closed the Rafah border crossing and is destroying the tunnels serve as a lifeline for Gaza's population of over 1.7 million.
According to al-Rafati, the Egyptian army has destroyed nearly 126 border tunnels, which have been used to get basic goods and medicines into Gaza during years of suffocating Israeli blockade.
Al-Rafati further called on the Egyptian government to reopen the Rafah crossing and allow the movement of people and goods through it.
More than 80 percent of the tunnels are no longer functional following their destruction by the Egyptian security forces.
Over the past months, Egypt has stepped up its crackdown on the supply tunnels leading into Gaza, which bring basic supplies to the Gazans in the besieged enclave. Egyptian army forces flooded several of tunnels in February.
Since the ouster of Egypt’s President Mohamed Morsi on July 3, the Egyptian military has launched a campaign to destroy the tunnels, preventing the people in Gaza from bringing in most of their basic goods like construction materials, food, and fuel.
The destruction of the tunnels has reportedly led to an increase in the price of fuel and other commodities in the coastal territory. Palestinians have to wait in long lines at gas stations and face daily power outages that last up to 14 hours.
Several human rights organizations and civil groups have criticized the Egyptian army for preventing the people in Gaza from accessing most of their basic goods like construction materials, food, and fuel.
20 sept 2013
The Gaza Strip's crisis has run very deep as the Rafah crossing is still closed for the ninth day in a row in addition to the closure of Karem Abu Salem crossing for the second day continuously due to Jewish holidays. The crisis has caused a decline in pharmaceutical stocks which arrive to the Gaza Strip via the Rafah crossing by 30%, and led to the lack of 150 types of medicines and 460 varieties of medical disposables in addition to more than a 100 varieties threatened with running out.
One thousand patients have been deprived from reaching Egyptian hospitals and delayed the arrival of dozens of specialized medical delegations from various countries around the world to the Strip, according to Gaza health ministry.
The crisis also has a severe impact on water and sanitation services in Gaza, due to the lack of fuel and electricity necessary to operate them.
The Ministry of Local Government has warned of the serious water and sanitation crisis in the strip that reached an alarming level and the breakdown of which is placing public health and the wider environment at risk in Gaza.
The impact of the crisis has extended to the fishing sector, which is threatened by stopping the work of 4000 fishing boats in Gaza in case they couldn't get the required amounts of fuel. The Energy and Natural Resources Authority suffers from an acute shortage of fuel needed to operate the only power plant in the Gaza Strip. Under these extreme conditions, caused by the closure of border crossings and scarcity of fuel supplies, the power station will be forced to shut down completely within the next few days, which will cause a major humanitarian disaster in the Gaza Strip.
The loss of electricity generation will have a devastating effect on humanitarian services such as health, water and sewage services.
Under the current circumstances, the arrival of the Qatari fuel to run the power plant is critical, and the top priority of the Palestinian people who suffer from the blockade and restrictions in various walks of life. The Authority is receptive to any administrative or technical arrangements necessary to ensure receipt at the country level of the requisite quantity of fuel.
In this regard, the Euro-Mid, the Geneva based organization, warned of the deteriorating humanitarian conditions in Gaza which is expected to exacerbate in the light of the ongoing political crisis in Egypt, unless the international community intervene sooner to provide Gaza with the needed relief, and avoid further repercussions on 1.7 million people.
One thousand patients have been deprived from reaching Egyptian hospitals and delayed the arrival of dozens of specialized medical delegations from various countries around the world to the Strip, according to Gaza health ministry.
The crisis also has a severe impact on water and sanitation services in Gaza, due to the lack of fuel and electricity necessary to operate them.
The Ministry of Local Government has warned of the serious water and sanitation crisis in the strip that reached an alarming level and the breakdown of which is placing public health and the wider environment at risk in Gaza.
The impact of the crisis has extended to the fishing sector, which is threatened by stopping the work of 4000 fishing boats in Gaza in case they couldn't get the required amounts of fuel. The Energy and Natural Resources Authority suffers from an acute shortage of fuel needed to operate the only power plant in the Gaza Strip. Under these extreme conditions, caused by the closure of border crossings and scarcity of fuel supplies, the power station will be forced to shut down completely within the next few days, which will cause a major humanitarian disaster in the Gaza Strip.
The loss of electricity generation will have a devastating effect on humanitarian services such as health, water and sewage services.
Under the current circumstances, the arrival of the Qatari fuel to run the power plant is critical, and the top priority of the Palestinian people who suffer from the blockade and restrictions in various walks of life. The Authority is receptive to any administrative or technical arrangements necessary to ensure receipt at the country level of the requisite quantity of fuel.
In this regard, the Euro-Mid, the Geneva based organization, warned of the deteriorating humanitarian conditions in Gaza which is expected to exacerbate in the light of the ongoing political crisis in Egypt, unless the international community intervene sooner to provide Gaza with the needed relief, and avoid further repercussions on 1.7 million people.
19 sept 2013
The Palestinian Authority, the European Union (EU) and the German Government marked an award of more than € 40 million to construct a wastewater treatment plant in East Nablus, EU said in a press release.
The large-scale project is funded through a € 20 million contribution by the EU, a € 21,8 million contribution by the German government as well as a € 3,4 million contribution by Municipality of Nablus and will be implemented via the German KfW Development Bank.
The project includes the cooperation of a number of Palestinian stakeholders.
The signing ceremony took place at the Prime Minister Office in Ramallah in the presence of the Dr. Rami Hamdallah, Palestinian Prime Minister, John Gatt-Rutter, EU Representative, Ms. Barbara Wolf, Head of the Representative Office of the Federal Republic of Germany Ramallah, Mohammad Abu Ramadan, State Minister for Planning Affairs, Dr. Shaddad Attili, Head of the Palestinian Water Authority, Mr. Wolfgang Reuss, KfW Director of North Africa and Middle East, and Representatives of the Mayor of Nablus Ghassan Shaka´a.
It's worth noting that currently, wastewater from East of Nablus flows untreated into the environment reaching agricultural areas and surrounding villages, therefore this project will significantly reduce health risks for the population of Nablus and contamination of the environment. It will also allow the re-use of treated wastewater in agriculture hence conserving limited groundwater resources in Palestine.
The project includes the construction of a central wastewater treatment plant to serve the eastern part of Nablus city and six surrounding villages of Azmut, Salem, Deir Al-Hatab, Kafer Qalil, Rujeeb and Beit Furik. It also includes new collection systems and extension of existing collection systems. Further, initial two years operational assistance to Nablus Municipality in operating the new plant, wastewater pre-treatment facilitates for selected industries and a pilot reuse scheme of treated wastewater in agriculture are financed within the project.
"Severe water shortages and acute water quality problems continue to negatively affect the lives and livelihoods of many Palestinians in the West Bank and Gaza, said the EU Representative, John Gatt-Rutter
"In an effort to improve the situation, the EU has since 2011 included water and sanitation as priority sectors within its overall financial assistance to the Palestinian people. Today's ceremony marks the beginning of an ambitious project which can make a real difference to the quality of life of Palestinians in Nablus and the surrounding villages. It is also a clear example of how the EU works together with its member states to bring tangible results for the benefit of the Palestinian people", added the EU Representative.
Barbara Wolf, Head of the Representative Office of the Federal Republic of Germany Ramallah, said "Treatment facilities like the one in Nablus East improve the health and environmental situation of Palestinians. The improvement of the water and wastewater services is one of the core areas of support of the German Government in the Palestinian Territories.
"We are proud to have cooperated with the Palestinian side on the recently inaugurated Nablus West Wastewater Treatment Plant and look forward to continuing this partnership also at the eastern side of Nablus," she also said.
"This project will benefit up to 150,000 people in the region and, through an effective collection and treatment of wastewater will protect water resources and reduce health risks," said Wolfgang Reuss, KfW Director of North Africa and Middle East.
The EU is a major actor in health and environmental protection in Palestine. Since 2008 it has invested nearly €90 million in the water and sanitation and solid waste management sectors.
In the West Bank, apart from Nablus, the EU is supporting the development of wastewater treatment plants also in other areas where water supply is scarce, such as Tubas. In Gaza, the EU is investing both in large-scale solid waste management programmes and also in medium-scale projects with high impact, such as the construction of a desalination facility that will provide safe water to thousands of Gazans.
The German Government currently implements projects worth more than € 240 million for supporting the water and wastewater sector. Major projects include the Al-Bireh, Nablus West and Gaza City wastewater treatment plants as well as technical assistance and capacity building to service providers and the Palestinian Water Authority (PWA).
It's worth mentioning that KfW Development Bank is Germany's leading development bank and an integral part of KfW. It implements Germany´s Financial Cooperation (FC) with developing countries on behalf of the Federal German Government. Its goal is to combat poverty, secure peace, protect the environment and the climate and make globalisation fair. KfW is a competent and strategic advisor on current development issues and has a local Office in Al-Bireh/Ramallah.
The large-scale project is funded through a € 20 million contribution by the EU, a € 21,8 million contribution by the German government as well as a € 3,4 million contribution by Municipality of Nablus and will be implemented via the German KfW Development Bank.
The project includes the cooperation of a number of Palestinian stakeholders.
The signing ceremony took place at the Prime Minister Office in Ramallah in the presence of the Dr. Rami Hamdallah, Palestinian Prime Minister, John Gatt-Rutter, EU Representative, Ms. Barbara Wolf, Head of the Representative Office of the Federal Republic of Germany Ramallah, Mohammad Abu Ramadan, State Minister for Planning Affairs, Dr. Shaddad Attili, Head of the Palestinian Water Authority, Mr. Wolfgang Reuss, KfW Director of North Africa and Middle East, and Representatives of the Mayor of Nablus Ghassan Shaka´a.
It's worth noting that currently, wastewater from East of Nablus flows untreated into the environment reaching agricultural areas and surrounding villages, therefore this project will significantly reduce health risks for the population of Nablus and contamination of the environment. It will also allow the re-use of treated wastewater in agriculture hence conserving limited groundwater resources in Palestine.
The project includes the construction of a central wastewater treatment plant to serve the eastern part of Nablus city and six surrounding villages of Azmut, Salem, Deir Al-Hatab, Kafer Qalil, Rujeeb and Beit Furik. It also includes new collection systems and extension of existing collection systems. Further, initial two years operational assistance to Nablus Municipality in operating the new plant, wastewater pre-treatment facilitates for selected industries and a pilot reuse scheme of treated wastewater in agriculture are financed within the project.
"Severe water shortages and acute water quality problems continue to negatively affect the lives and livelihoods of many Palestinians in the West Bank and Gaza, said the EU Representative, John Gatt-Rutter
"In an effort to improve the situation, the EU has since 2011 included water and sanitation as priority sectors within its overall financial assistance to the Palestinian people. Today's ceremony marks the beginning of an ambitious project which can make a real difference to the quality of life of Palestinians in Nablus and the surrounding villages. It is also a clear example of how the EU works together with its member states to bring tangible results for the benefit of the Palestinian people", added the EU Representative.
Barbara Wolf, Head of the Representative Office of the Federal Republic of Germany Ramallah, said "Treatment facilities like the one in Nablus East improve the health and environmental situation of Palestinians. The improvement of the water and wastewater services is one of the core areas of support of the German Government in the Palestinian Territories.
"We are proud to have cooperated with the Palestinian side on the recently inaugurated Nablus West Wastewater Treatment Plant and look forward to continuing this partnership also at the eastern side of Nablus," she also said.
"This project will benefit up to 150,000 people in the region and, through an effective collection and treatment of wastewater will protect water resources and reduce health risks," said Wolfgang Reuss, KfW Director of North Africa and Middle East.
The EU is a major actor in health and environmental protection in Palestine. Since 2008 it has invested nearly €90 million in the water and sanitation and solid waste management sectors.
In the West Bank, apart from Nablus, the EU is supporting the development of wastewater treatment plants also in other areas where water supply is scarce, such as Tubas. In Gaza, the EU is investing both in large-scale solid waste management programmes and also in medium-scale projects with high impact, such as the construction of a desalination facility that will provide safe water to thousands of Gazans.
The German Government currently implements projects worth more than € 240 million for supporting the water and wastewater sector. Major projects include the Al-Bireh, Nablus West and Gaza City wastewater treatment plants as well as technical assistance and capacity building to service providers and the Palestinian Water Authority (PWA).
It's worth mentioning that KfW Development Bank is Germany's leading development bank and an integral part of KfW. It implements Germany´s Financial Cooperation (FC) with developing countries on behalf of the Federal German Government. Its goal is to combat poverty, secure peace, protect the environment and the climate and make globalisation fair. KfW is a competent and strategic advisor on current development issues and has a local Office in Al-Bireh/Ramallah.
18 sept 2013
Former Egyptian Electricity Minister Osama Kamal, accused Hamas officials in Gaza of cooperating with Muslim Brotherhood officials in Egypt to operate the smuggling tunnels
Former Egyptian Electricity Minister Osama Kamal has appeared happy on a local Egyptian television network, rejoicing: "We succeeded in closing the only electricity plant in Gaza."
Speaking to a talk show on Egyptian Al-Hayat TV, Kamal attributed the news to "the great [and] successful efforts of the Egyptian army in Sinai."
He said that the Egyptian army could only stop the smuggling of Egyptian diesel and gasoline to the Gaza Strip after "strictly closing the tunnels."
The former minister said that the electricity plant in Gaza consumes about two million litres of diesel and gasoline each month, but clarified that most of that quantity used to be smuggled in from Egypt. "We could stop it three days ago," he said.
He accused Hamas officials in Gaza of cooperating with Muslim Brotherhood officials in Egypt to operate the smuggling tunnels. He accused Muslim Brotherhood officials in Egypt of holding "sensitive" positions in the government that helped them facilitate smuggling to Gaza.
Hamas banned the smugglers who run the tunnels before the siege was tightened. Later on they were allowed to smuggle food, fuel, medicines and other vital commodities.
The Palestinian government in Gaza, run by Hamas since 2007, has been calling upon regional and international bodies to put pressure on Israel to lift the siege so that it can put sanctions on smuggling activities.
Former Egyptian Electricity Minister Osama Kamal has appeared happy on a local Egyptian television network, rejoicing: "We succeeded in closing the only electricity plant in Gaza."
Speaking to a talk show on Egyptian Al-Hayat TV, Kamal attributed the news to "the great [and] successful efforts of the Egyptian army in Sinai."
He said that the Egyptian army could only stop the smuggling of Egyptian diesel and gasoline to the Gaza Strip after "strictly closing the tunnels."
The former minister said that the electricity plant in Gaza consumes about two million litres of diesel and gasoline each month, but clarified that most of that quantity used to be smuggled in from Egypt. "We could stop it three days ago," he said.
He accused Hamas officials in Gaza of cooperating with Muslim Brotherhood officials in Egypt to operate the smuggling tunnels. He accused Muslim Brotherhood officials in Egypt of holding "sensitive" positions in the government that helped them facilitate smuggling to Gaza.
Hamas banned the smugglers who run the tunnels before the siege was tightened. Later on they were allowed to smuggle food, fuel, medicines and other vital commodities.
The Palestinian government in Gaza, run by Hamas since 2007, has been calling upon regional and international bodies to put pressure on Israel to lift the siege so that it can put sanctions on smuggling activities.
A Palestinian tunnel worker sleeps at the entrance to a smuggling tunnel in Gaza.
Residents and officials in Gaza say the repeated closures of the border crossing into Egypt, a key lifeline for Palestinians in the occupied territories, is destroying livelihoods, harming health and lowering basic living conditions.
The border crossing at Rafah has now been closed for seven consecutive days - the second sustained closure in the past few weeks - following instability in the Sinai region on the Egyptian side of the border.
A reopening is promised tomorrow, Wednesday, but the closures, reduced operating hours and the crackdown on smuggling tunnels are squeezing the country's most important supply line.
Among those who have tried to leave Gaza over the past few weeks is Mona Hussien, 34, and her four children, who normally live in Saudi Arabia.
"I've been to the crossing about five times now (in less than two weeks). My children are tired and so am I. We have school coming. It's our residency at stake; we have to go," she told IRIN.
She came to spend the summer with relatives in Gaza, but has grown increasingly desperate to re-join her husband.
"When are we going to go back to normal? How we can live like other people while we are facing such restrictions, closures and (the) blockade?"
'Stranded'
The Rafah crossing has been the principal connection between Gaza's 1.8 million residents and the outside world since the destruction of Gaza's international airport in 2001 and the subsequent air and naval blockade.
Last week's decision to close the border was taken by the Egyptian authorities following an attack by militants on a military base in northern Sinai.
"Thousands are trying to leave and enter every day," said Gaza resident Yehia Barrawi, 62. "Even with the announced temporary reopening, many will still be blocked, and we no longer feel the crossing is stable."
The situation has deteriorated since late June, when demonstrations erupted in Egypt, culminating in the removal of president Mohamed Morsi in early July. The Egyptian army initiated a campaign against armed militants and extremist groups operating in the Sinai, which media close to the new government have linked to the Hamas movement, which controls neighboring Gaza.
Even when the crossing has been open, hours have been reduced from nine to four and from seven days to six.
In the week before these recent closures, from 3 to 9 September, UN figures show at least 150 people crossed into Egypt and around 130 others crossed into Gaza per day. Together, this is just 15 percent of the average number of people crossing per day in June (approximately 1,860).
The other two crossings - into Israel - at Kerem Shalom and Erez have severe restrictions on the movement of people and goods.
Yehia has been repeatedly prevented from crossing the border. He's recovering from heart surgery in Gaza and says he now risks losing his work and residency permits in the United Arab Emirates because of the delays. "I came to Gaza with my wife and daughter six months ago. Everything was fine. However it changed after the recent developments. Now, I'm stranded," he said.
Restrictions and concerns
Gaza's health minister, Mofeed Mukhalalati, says there are thousands of patients waiting to leave for medical treatment in Egypt.
Several medical delegations planning to treat patients and train local health ministry staff were denied permission to enter Gaza.
Alaa, 26, who requires knee surgery after sustaining an injury in a football game three months ago, says he has tried several times to leave through the crossing, but despite having all the supporting documents, he was denied entry by Egyptian authorities.
Alaa told IRIN that he found it shocking because he had traveled to Egypt a few months before, and had entered the country and returned without any problems.
There are ongoing efforts to find a possible way to permanently reopen the crossing, according to officials in Gaza. Meanwhile, a handful of Palestinians are clustered at the crossing gate, urging an immediate reopening.
"The Office for the Coordination of Humanitarian Affairs (OCHA) is very concerned about recent security measures and restrictions on the Rafah crossing and tunnels between Egypt and the Gaza Strip," said the UN Secretary-General's spokesperson, Farhan Haq, earlier this month.
"The restrictions have resulted in delays for students and patients seeking urgent medical treatment, and shortages of construction materials, fuel and medical supplies. Thousands of Palestinians are stranded on both sides of the border."
On 16 September, Palestinian President Mahmoud Abbas asked the Egyptians to reopen the crossing to allow people and patients to leave and to let people stranded in Egypt enter Gaza.
Egyptian officials responded hours later by announcing that the crossing will be temporarily opened on Wednesday and Thursday, 18 and 19 September, for humanitarian reasons. There are no indications or announcements about any later openings.
Shortages and inflation
The closures, along with the large-scale destruction of smuggling tunnels that were a major supply route into Gaza, are leading to shortages and higher prices for basic goods.
OCHA estimates that fewer than 10 tunnels are operational, down from 50 in previous weeks and 300 before June.
Gaza depends on supplies of cheap Egyptian fuel to run its main power station. With daily fuel imports down to 200,000 litres, from one million, Gaza is suffering long hours of blackouts.
Residents and officials in Gaza say the repeated closures of the border crossing into Egypt, a key lifeline for Palestinians in the occupied territories, is destroying livelihoods, harming health and lowering basic living conditions.
The border crossing at Rafah has now been closed for seven consecutive days - the second sustained closure in the past few weeks - following instability in the Sinai region on the Egyptian side of the border.
A reopening is promised tomorrow, Wednesday, but the closures, reduced operating hours and the crackdown on smuggling tunnels are squeezing the country's most important supply line.
Among those who have tried to leave Gaza over the past few weeks is Mona Hussien, 34, and her four children, who normally live in Saudi Arabia.
"I've been to the crossing about five times now (in less than two weeks). My children are tired and so am I. We have school coming. It's our residency at stake; we have to go," she told IRIN.
She came to spend the summer with relatives in Gaza, but has grown increasingly desperate to re-join her husband.
"When are we going to go back to normal? How we can live like other people while we are facing such restrictions, closures and (the) blockade?"
'Stranded'
The Rafah crossing has been the principal connection between Gaza's 1.8 million residents and the outside world since the destruction of Gaza's international airport in 2001 and the subsequent air and naval blockade.
Last week's decision to close the border was taken by the Egyptian authorities following an attack by militants on a military base in northern Sinai.
"Thousands are trying to leave and enter every day," said Gaza resident Yehia Barrawi, 62. "Even with the announced temporary reopening, many will still be blocked, and we no longer feel the crossing is stable."
The situation has deteriorated since late June, when demonstrations erupted in Egypt, culminating in the removal of president Mohamed Morsi in early July. The Egyptian army initiated a campaign against armed militants and extremist groups operating in the Sinai, which media close to the new government have linked to the Hamas movement, which controls neighboring Gaza.
Even when the crossing has been open, hours have been reduced from nine to four and from seven days to six.
In the week before these recent closures, from 3 to 9 September, UN figures show at least 150 people crossed into Egypt and around 130 others crossed into Gaza per day. Together, this is just 15 percent of the average number of people crossing per day in June (approximately 1,860).
The other two crossings - into Israel - at Kerem Shalom and Erez have severe restrictions on the movement of people and goods.
Yehia has been repeatedly prevented from crossing the border. He's recovering from heart surgery in Gaza and says he now risks losing his work and residency permits in the United Arab Emirates because of the delays. "I came to Gaza with my wife and daughter six months ago. Everything was fine. However it changed after the recent developments. Now, I'm stranded," he said.
Restrictions and concerns
Gaza's health minister, Mofeed Mukhalalati, says there are thousands of patients waiting to leave for medical treatment in Egypt.
Several medical delegations planning to treat patients and train local health ministry staff were denied permission to enter Gaza.
Alaa, 26, who requires knee surgery after sustaining an injury in a football game three months ago, says he has tried several times to leave through the crossing, but despite having all the supporting documents, he was denied entry by Egyptian authorities.
Alaa told IRIN that he found it shocking because he had traveled to Egypt a few months before, and had entered the country and returned without any problems.
There are ongoing efforts to find a possible way to permanently reopen the crossing, according to officials in Gaza. Meanwhile, a handful of Palestinians are clustered at the crossing gate, urging an immediate reopening.
"The Office for the Coordination of Humanitarian Affairs (OCHA) is very concerned about recent security measures and restrictions on the Rafah crossing and tunnels between Egypt and the Gaza Strip," said the UN Secretary-General's spokesperson, Farhan Haq, earlier this month.
"The restrictions have resulted in delays for students and patients seeking urgent medical treatment, and shortages of construction materials, fuel and medical supplies. Thousands of Palestinians are stranded on both sides of the border."
On 16 September, Palestinian President Mahmoud Abbas asked the Egyptians to reopen the crossing to allow people and patients to leave and to let people stranded in Egypt enter Gaza.
Egyptian officials responded hours later by announcing that the crossing will be temporarily opened on Wednesday and Thursday, 18 and 19 September, for humanitarian reasons. There are no indications or announcements about any later openings.
Shortages and inflation
The closures, along with the large-scale destruction of smuggling tunnels that were a major supply route into Gaza, are leading to shortages and higher prices for basic goods.
OCHA estimates that fewer than 10 tunnels are operational, down from 50 in previous weeks and 300 before June.
Gaza depends on supplies of cheap Egyptian fuel to run its main power station. With daily fuel imports down to 200,000 litres, from one million, Gaza is suffering long hours of blackouts.