This week's donors conference on reconstructing Gaza saw many pledges being made. But how are the funds to be distributed, asks Doaa El-Bey The international donors conference on reconstructing Gaza managed to raise over $4.5 million for rebuilding the war-shattered Strip. It also cast light on the factors that could impede reconstruction: failure to conclude a long- term truce between Israel and Hamas; Palestinian divisions and the absence of any clear mechanism determining how donor pledges are actually spent. In his opening speech to the conference President Hosni Mubarak said the priority was to reach a truce. He linked the success of the reconstruction process to five factors: a truce; reconciliation between the Palestinian parties; developing a mechanism to guarantee funds are directed towards rebuilding; activating the role of the UN to monitor reconstruction and a continuous review to ensure donors fulfil their pledges. Egypt has been exerting enormous efforts with both the Israelis and Hamas in order to reach a long-term truce, and Mubarak said before the conference that Cairo would continue its mediation between the two parties. In the absence of a truce the rebuilding process is unlikely to go ahead. Both Israel and Hamas have expressed reservations over the distribution of aid money. Hamas's spokesman Fawzi Barhoum said the group would not accept any political component to the rebuilding process and urged the international community to work out a mechanism to ensure money reaches Gazans while circumventing the complexities of internal Palestinian politics. Meanwhile, Israel's prime minister designate, Benyamin Netanyahu, has expressed reservations about any aid money being handled by Hamas while it is still firing rockets at Israel. The Palestinian dialogue launched in Cairo last week has already resulted in the formation of five committees charged with resolving differences ahead of the formation of a consensus government. Egypt tried to kick-start Palestinian dialogue last November only for Hamas to back out at the last minute. There is some hope that the dialogue will succeed this time, if only because of the election of Netanyahu and the far right Israeli government he is expected to piece together. Following Israel's onslaught against Gaza Egyptian diplomacy moved into overdrive as it tried to broker a truce between the Israelis and Hamas and between the two main Palestinian parties. It held several rounds of talks with Israeli and Hamas officials separately but failed to bridge the gap between them. President Mubarak's European tour last month, which took him to Paris, Rome and Ankara, aimed to seek the help of these states in concluding a permanent ceasefire. The three states -- which enjoy good relation with Israel -- could help pressure Tel Aviv into changing its position that any truce be linked to the release of captured Israeli soldier Gilad Shalit. In addition France, Italy and Turkey were encouraged to help boost the position of the Palestinian government in the hope it would improve Mahmoud Abbas's position in any negotiations with Hamas. Both the Palestinian Authority and Hamas expect to be responsible for the rebuilding process. Donor states, however, insist that Hamas must be circumvented. Hamas, meanwhile, is unlikely to allow any funds into Gaza unless it controls their distribution. The conference failed to agree a unitary mechanism for donor money to reach Gazans. Most funds are still supposed to be channelled through the Palestinian Authority which has no presence in the beleaguered Strip. Gulf states decided to set up their own office in Gaza while other states have opted to use the UN as an alternative channel. This has the advantage of allowing the UN to play a wider role in Gaza. UN Secretary-General Ban Ki-Moon, addressing the conference in its opening session, called for lifting the blockade imposed on Gaza since mid-2007. "The situation at the border crossings is intolerable," he said. Ban took part in the international Middle East Quartet meeting held on the sideline of the conference. US Secretary of State Hillary Clinton, EU Commissioner Javier Solana and Russian Foreign Minister Sergei Lavrov also attended the meeting to discuss how to revive the peace process. The conference was attended by senior officials from 71 states, including President Mubarak and French President Nicolas Sarkozy.