GazaReconstruction – World Bank Launches New Fund for Gaza Recovery
GazaReconstruction – The World Bank has formally established a new financial mechanism aimed at coordinating global support for the rebuilding of Gaza, placing the institution at the centre of an international recovery effort following months of conflict.
At a meeting of the recently created Board of Peace in Washington on Thursday, World Bank President Ajay Banga confirmed the launch of the Gaza Reconstruction and Development Fund. The initiative follows the passage of a United Nations Security Council resolution that cleared the way for a structured, multilateral reconstruction plan.
A Dedicated Fund Under International Oversight
Banga explained that the fund will operate within the World Bank, which will serve in a restricted trustee capacity. In practical terms, this means the institution will receive and administer contributions from donor nations while acting under the authority of the Board of Peace.
According to Banga, the financial structure has already been set up and is prepared to accept pledged contributions from participating governments. Funds collected through the mechanism will be directed toward rebuilding essential infrastructure and supporting long-term development programs in Gaza.
The reconstruction plan outlined during the meeting includes restoring homes, repairing public infrastructure, and rebuilding essential services such as healthcare and education. It also envisions the establishment of a new Palestinian administrative authority in Gaza to oversee governance and service delivery during the recovery phase.
Focus on Transparency and Financial Controls
A key theme of Banga’s remarks was accountability. He emphasized that donor governments must be confident that their contributions will be managed responsibly and transparently.
To support that objective, the World Bank will implement financial safeguards and oversight systems. These include legal and compliance frameworks designed to ensure that funds are allocated strictly for approved reconstruction and development projects.
In addition, the Bank has assigned a financial controller to work directly with the Board of Peace. This official, seconded specifically for the Gaza initiative, will help ensure that international standards for financial governance are upheld throughout the process.
Mobilising Public and Private Capital
Beyond administering the new fund, Banga outlined how the World Bank Group could expand its involvement in Gaza’s economic recovery.
First, he pointed to the institution’s ability to mobilise public financing. With its longstanding AAA credit rating, the World Bank can raise capital in global bond markets at favourable rates. That capacity, he said, could significantly expand the pool of resources available for reconstruction.
Second, the Bank can help reduce investment risk for private sector participants. Through guarantees and other financial instruments, it may encourage private investors to engage in rebuilding projects that might otherwise be considered too uncertain in a post-conflict environment.
Finally, Banga highlighted the Bank’s operational experience. The World Bank has managed large-scale reconstruction efforts in multiple regions affected by conflict or natural disasters. Its technical expertise and local presence could help guide project implementation in Gaza.
International Commitments and Long-Term Impact
Several countries used the meeting to announce major financial commitments. The United States pledged $10 billion toward the reconstruction effort, while other participating nations collectively promised billions more in assistance.
The scale of the pledges underscores the international community’s intention to support a structured rebuilding process rather than rely on fragmented aid initiatives. By placing the World Bank at the heart of the mechanism, donors aim to create a coordinated and rules-based funding system.
The creation of the Gaza Reconstruction and Development Fund represents one of the most comprehensive international financing arrangements proposed for Gaza in recent years. Its success will depend on sustained political support, transparent administration, and the effective execution of projects on the ground.
As the rebuilding phase begins, the focus will shift from pledges to implementation, with close attention on how quickly and efficiently funds translate into tangible improvements for Gaza’s residents.