RAMALLAH/GAZA CITY (AFP) - The Palestinian Authority said on Wednesday it will seek 2.8 billion dollars to rebuild Gaza, as Israeli warplanes launched two airstrikes along the Gaza Strip's border with Egypt as delegates from three Palestinian factions were crossing at a nearby terminal. The witnesses said the two airstrikes left large craters and caused damage to surrounding homes near the border, where smugglers operate a massive underground network of tunnels to supply goods to the besieged territory. There were no immediate reports of anyone killed or wounded. An Israeli military spokeswoman confirmed that two airstrikes had been carried out in the area. Palestinian activists had earlier fired two crude homemade rockets into southern Israel without causing any casualties, according to the military. Delegations from the Islamic Jihad group and two factions from the Palestine Liberation Organisation (PLO) headed by the Western-backed President Mahmud Abbas were crossing into Egypt at the time of the Israeli raid. The Fatah and Hamas movements met in Cairo to try to ease tensions ahead of Egypt-brokered reconciliation talks aimed at paving the way for a unity government. Senior officials from Fatah and the Islamist group also held talks overnight ahead of the formal opening of the dialogue on Thursday (today). "The climate is positive and promising," Hamas political bureau member Ezzat Resheq told journalists after Wednesday's talks. "We hope for positive results." Azzam al-Ahmad, leader of the Fatah bloc in the Palestinian parliament, agreed: "The meetings took place in a positive atmosphere." The stakes are high for Thursday's negotiations as billions of dollars of funds to rebuild the Gaza Strip may be available if terms set by international donors can be met before an aid meeting next week in Egypt. "We have prepared a document on the basis of which donors will make their aid pledges. It foresees a total of $2.8b for all sectors," Palestinian Prime Minister Salam Fayyad said at the headquarters of his Western-backed government in the Israeli-occupied West Bank. More than 70 countries are expected at the March 2 meeting in Egypt, which has been mediating a consolidation of the Gaza truce after Hamas and Israel declared on January 18 their own ceasefires to end a 22-day war that killed more than 1,300 Palestinians and 13 Israelis. Syrian Foreign Minister Walid Moallem said he will attend the conference on rebuilding Gaza, but it is not known if he will meet US Secretary of State Hillary Clinton there. Israeli Foreign Minister Tzipi Livni warned on Wednesday that Israel would launch another military "operation" in Gaza if the alleged smuggling of arms from Iran to the territory's Hamas rulers continues. "Iran must be made aware that the weapon smuggling to Syria, Lebanon and Hamas constitutes a severe violation of international agreements," she said. "If the weapons smuggling to Gaza continues Israel will have no other option than to initiate another defensive operation."