World Bank Launches Gaza Reconstruction Fund

Washington: World Bank President Ajay Banga has announced the creation of the Gaza Reconstruction and Development Fund, a new financial mechanism aimed at rebuilding the war-affected Gaza Strip.

Speaking at the first meeting of the Board of Peace in Washington, Banga said the fund was established after the passing of a United Nations Security Council resolution. The fund is housed at the World Bank, which will act as a “limited trustee” under the direction of the newly formed Board of Peace.

Banga explained that the World Bank will manage all international donations and release funds for approved reconstruction and development projects in Gaza, as guided by the Board of Peace. He confirmed that the fund is now fully set up and ready to receive financial pledges from participating countries.

Focus on Transparency

Banga stressed that financial transparency will be a key priority. He said donors have the right to know how their money is being used. To ensure accountability, the World Bank will implement strict financial, legal, and oversight standards.

A financial controller has also been assigned to the Board of Peace on a secondment basis. This step is aimed at maintaining high standards of monitoring and ensuring that funds are used properly.

World Bank’s Broader Role

Beyond managing donations, the World Bank Group plans to support Gaza’s recovery in three major ways:

1. Leveraging Public Finance: With its AAA credit rating, the World Bank can raise additional funds through global bond markets to support reconstruction.

2. Reducing Investment Risk: The Bank may provide guarantees and financial tools to encourage private investors to participate in rebuilding projects.

3. On-Ground Expertise: The World Bank has teams and experience in handling reconstruction efforts in different countries, which will help in planning and execution.

Banga said the institution does not want to remain a passive observer. Instead, it aims to play an active role in supporting the people of Gaza and improving living conditions in the region.

Major Funding Commitments

The reconstruction plan includes rebuilding homes, infrastructure, and public services. It also proposes the creation of a new Palestinian administrative authority in Gaza.

Several countries have pledged billions of dollars to support the effort, with the United States committing $10 billion.

The involvement of the World Bank places a major international financial institution at the center of Gaza’s post-war recovery. The Gaza Reconstruction and Development Fund is being seen as one of the most structured and transparent international funding frameworks proposed for the territory in recent years.