World Bank advises establishing
fund for post-war reconstruction

$250 million pledged towards $1 billion cost

of removing rubble and fixing infrastructure

The World Bank has conducted an initial study for a major reconstruction project in Lebanon, primarily focusing on infrastructure rebuilding and rubble removal in the South, the suburbs of Beirut, and the Bekaa. The estimated cost of the project is around $1 billion, with the World Bank initially committing $250 million. This initial funding is expected to be a catalyst for additional contributions from other countries, ensuring progress in the reconstruction efforts. The World Bank’s involvement is seen as crucial, as it lends credibility to the initiative and enhances donor confidence.

The study provides preliminary estimates of both direct and indirect losses caused by the recent destruction. Given the urgency of the situation, swift action is needed to ensure the project’s success. The plan could be presented to the World Bank’s Board of Directors by the end of March. In the meantime, the government will start preparing its institutions to align with the project and introduce necessary legislative amendments to classify reconstruction as an emergency matter under a law. This would facilitate expedited procedures to address the pressing needs of affected citizens.

A key component of the World Bank’s recommendations is the adoption of an effective approach to engage the international community in securing financial aid for reconstruction. The bank has advised the government to establish a dedicated reconstruction fund, accompanied by governance reforms that ensure transparency in the utilization of funds. This strategy is expected to enhance Lebanon’s credibility when appealing to donor countries and international organizations for support.

According to the World Bank’s latest, though not final, assessments, the total damages and losses in Lebanon have exceeded $14 billion. The reconstruction of essential infrastructure and the removal of debris are critical priorities, as many villages and cities in the affected areas currently lack basic living necessities. The success of this initiative will largely depend on Lebanon’s ability to implement structural reforms and demonstrate a commitment to transparency and accountability.