OPT: Food, fuel, cash reach the Gaza Strip, but continued closures threaten economic sustainability

(New York: 11 July 2007): The passage of humanitarian imports into Gaza is helping to meet some of the minimum food needs in the territory, but with three quarters of Gazan factories closed or operating at 20 per cent capacity, the direct livelihoods of 30,000 people is in jeopardy and major business interests are losing at least $500,000 a day. Eighty percent of the Gazan population already receive food assistance.

Border restrictions are also preventing all exports including agricultural exports from reaching the market, depriving farmers of income, while an overabundance of tomatoes, melons and local apples has caused a drop in their value inside Gaza. More than 1,300 containers of various commercial materials destined for the territory are stuck at Israeli ports, due to the cancellation of the Gaza customs code by the Israeli Customs Authority. Essential items like milk powder, baby formula and vegetable oil are currently in short supply.

"We need to see all crossings at least as operational as they were before 9 June for both imports and exports, or risk facing serious social, economic and humanitarian concerns," said John Holmes, United Nations Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator. "Unless trade is facilitated in and out of Gaza, we will likely see more people seeking humanitarian assistance."

In a positive development, cash entering the territory has allowed the Palestinian Authority to pay the salaries of some civil servants, but government workers hired after December 2005 - an estimated 20,000 to 31,000 individuals - still have not received the money they are owed, raising concerns about potential tension.

Efforts are being made by the United Nations, the Palestinian Authority and Israel to install two conveyor belts at Kerem Shalom and to widen the area for truck-transfer operations, which is expected to allow as many as 150 truckloads of goods to pass through up from the limit of 20 truckloads. However, the mortar attacks from Gaza on Kerem Shalom have raised concerns about the security of the crossing. Meanwhile, the Nahal Oz fuel pipeline was opened during the week to allow diesel, petrol and cooking gas to come through, and a conveyor belt at Karni crossing was open for wheat grain, corn and animal feed imports.

As for the movement of people, the 10 June closure of the border at Rafah has left close to 6,000 Palestinians from Gaza stranded in Egypt with no way of returning home.

"The importance of lifting current border restrictions cannot be over-emphasized," said Holmes.

For further information, please call: Stephanie Bunker, OCHA-New York, +1 917 367 5126, mobile +1 917 892 1679; Dizery Salim, OCHA-New York, +1 917 367 9262; Elisabeth Byrs, OCHA-Geneva, +41 22 917 2653, mobile, +41 79 473 4570. OCHA press releases are available at http://ochaonline.un.org or www.reliefweb.int.