UN agency reaches deal to build 400 homes for Palestinians in the Gaza Strip

The main United Nations relief agency helping Palestine refugees will build 400 homes in the Gaza Strip town of Rafah after striking an agreement today with the Palestinian Authority.

Under the accord, the Authority will provide two tracts of land for the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) to start its re-housing project for the homeless.

UNRWA Commissioner-General Peter Hansen reached a deal after meeting with Palestinian Authority President Yasser Arafat in Ramallah. The scheme will be funded by the United Arab Emirates' Red Crescent Society.

Last month UNRWA launched an appeal for $15.8 million for Rafah after Israeli military raids there left thousands of people homeless. About $6.3 million has been pledged so far.

More than 15,000 people have become homeless in Rafah since the start of the latest intifada in September 2000. UNRWA has been building new shelters to re-house many people, but the recent rate of destruction in the Israeli raids has meant it has been unable to keep up with demand.