World Bank kick-starts economic relief mechanism

Four-track delivery schemes will take time

The World Bank will soon launch its relief program for the Syrian refugee crisis in Lebanon. A four-track roadmap has been outlined to set up the necessary mechanisms for channeling international financial support for investments for infrastructure. The World Bank will focus on development and will earmark funds for specific projects to limit the impact of this crisis.

As a first step, the World Bank will deal with aid previously offered or decided by donor countries and organizations.

The next steps will involve creating a fund to manage future foreign aid and donations. The fund will approve development projects and secure infrastructure financed by soft and long-term loans with an interest rate not exceeding 1.5 percent.

Finally, the World Bank will then work on encouraging the private sector to participate in planned investment projects. The goal on the long term is to hold initiatives similar to the Paris II and III conferences to gather financial support and assist reforms.

Some donor countries posed conditions for channeling financial support. These conditions concern humanitarian aid to respond to the immediate needs of the displaced.

During her visit to Beirut, Inger Andersen, Vice President of the World Bank, said their involvement falls under a different scope and does not take into consideration any political implications.

However, she said expectations should not be raised high since the initial aid will be modest, awaiting the establishment of the trust fund mechanism.

A report by the World Bank last month said the rising number of refugees entering the country will incur some $7 billion in additional costs for the local economy.