The World Bank has announced the establishment of a Gaza Reconstruction and Development Fund to oversee international contributions aimed at rebuilding the war-torn region, as stated by President Ajay Banga.
In a significant move, World Bank President Ajay Banga announced the creation of a dedicated Gaza Reconstruction and Development Fund during the inaugural meeting of the Board of Peace in Washington, D.C., on February 19. This fund is designed to manage international contributions for rebuilding the war-ravaged territory.
Banga explained that the World Bank would serve as a “limited trustee” under the direction of the newly formed Board of Peace. He stated, “Once the United Nations Security Council resolution was passed, the World Bank set about creating the Gaza Reconstruction and Development Fund.”
“It’s housed there. The World Bank’s role is that of a limited trustee,” he continued. “We manage the donor contributions coming in… and under the direction of the Board of Peace, we disperse the money for reconstruction and development projects in Gaza.”
The fund is reportedly ready to accept donations pledged by participating countries. Banga emphasized the importance of financial transparency in the fund’s operations. “You as donors deserve the right to know that the money is being used in a transparent way,” he remarked, adding that financial, legal, and oversight standards would be established to ensure accountability.
To further enhance oversight, Banga noted that the World Bank has assigned a financial controller to the Board of Peace on a secondment basis. This move aims to help build the best standards in the reconstruction process.
In addition to managing funds, Banga outlined three broader roles that the World Bank Group could play in supporting Gaza’s reconstruction efforts. The first involves leveraging public finance. He pointed out that the Bank’s AAA credit rating enables it to leverage private bond money, which is crucial for generating the necessary resources.
The second role is to de-risk private investment. Banga indicated that the Bank could provide guarantees or financial instruments to attract private capital into the reconstruction efforts.
Lastly, he highlighted the World Bank’s on-the-ground presence and expertise in similar projects in other markets. “We want to be not an arm’s length critical process, but an active participant in giving Gazan people and people in the region the opportunity of the lives they deserve,” Banga asserted.
The reconstruction plan presented at the meeting includes large-scale rebuilding of housing, infrastructure, and public services, along with the establishment of a new Palestinian administrative authority in Gaza. Several countries have pledged billions of dollars in support, with the United States committing $10 billion.
The World Bank’s involvement marks a significant step in establishing a structured international funding framework for post-war Gaza recovery, positioning one of the world’s major multilateral financial institutions at the forefront of this critical effort.
According to IANS, this initiative represents one of the most organized approaches to international funding for Gaza in recent years.