GAZA CITY, GAZA–Almost 10 months after the end of fighting between Israel and Hamas in Gaza, a cherry-red bulldozer is scooping up huge chunks of concrete and twisted metal struts at what used to be the Palestinian security forces headquarters.

While some of the rubble has been cleared and trucked to southern Gaza, many half-destroyed buildings are still standing and almost no reconstruction has been done.

According to United Nations estimates, some 4,000 homes were destroyed in the 22-day Israeli bombardment and 17,000 were partially destroyed.

One of those, in the Jabaliya refugee camp, belongs to Maher al-Ameri. His house was almost completely destroyed in January when an Israeli missile killed senior Hamas leader Nizar al-Rayan, along with three of his wives and 11 of his children.

On a recent afternoon, al-Ameri was spreading mortar onto grey concrete bricks. He says the Egyptian cement, which is far inferior to the Israeli-made cement that used to be plentiful in Gaza, had been smuggled through the extensive network of tunnels between Israel and Gaza. He says it was about 10 times as expensive as Israeli cement and he's not sure how long it will hold up.

"I blame both Israel and the Hamas government here," he said. "We had been living very well before a closure was imposed."

Israel closed off Gaza after Hamas won Palestinian elections in January 2006 and tightened restrictions after Hamas took over Gaza in June 2007. While Israel does allow food and medicine into Gaza, many consumer goods, as well as cement and iron, are prohibited.

"Hamas has used cement for fortifications and bunkers," said Israeli Foreign Ministry spokesman Yigal Palmor. "In the past, a lot of cement has been diverted from civilian use to purely military use as instructed by Hamas. We need assurances that any cement allowed in will not be used by Hamas officials. Until we get those assurances, cement is out."

Palmor says Israel did allow a small amount of cement in to help repair Gaza's failing sewage system.

In March, Egypt hosted an international donors conference for the rebuilding of Gaza, and raised more than $5 billion. That money has not reached Gaza because it has not been decided who will spearhead the reconstruction. Much of the international community considers Hamas, which controls Gaza, a terrorist organization and wants to make sure Hamas does not get the money.

"We had so much hope after the international conference but it was all a mirage," said Adnan Abu Hasna, spokesman for the UN Relief and Works Agency in Gaza.

"But it is all just dreams and illusions. On the ground we cannot carry out any of the promises we gave to the people here."

The UN agency provides food aid for a million of Gaza's 1.5 million Palestinians. Without that aid, Abu Hasna says, there would be widespread malnutrition. Gaza's economy is stagnating with more than 40 per cent unemployment.

Most Gazans whose homes were damaged or destroyed during last winter's fighting have moved into UN-funded rented apartments or moved in with families. But several dozen families still live in tents.

Abd al-Rahman al-Maqusi and his family have lived in a tent in a vacant lot since the fighting ended. His five children do their homework under nearby street lamps.

"We were forced to stay here because we don't have an alternative," he said "It's been so hard to find a place to live after the war. I don't see any future here for my children."