In a major boost for war-torn Gaza’s recovery, World Bank President Ajay Banga has announced the creation of a dedicated ‘Gaza Reconstruction and Development Fund.’ This initiative will channel international donations into structured rebuilding projects, ensuring efficient and transparent use of funds.
Speaking at the inaugural meeting of the newly formed Board of Peace in Washington, Banga emphasized the World Bank’s role as a ‘limited trustee.’ The fund operates under the board’s directives, with the bank facilitating fund management without direct control. Following the swift passage of a UN Security Council resolution, the World Bank expedited the fund’s establishment, positioning it ready to receive pledges from global donors.
Transparency stands as the cornerstone of this effort. Donors will have full visibility into fund allocation through rigorous financial, legal, and oversight standards. To bolster accountability, the World Bank has seconded a financial controller to the Board of Peace, guaranteeing adherence to world-class practices.
Banga outlined three pivotal roles for the World Bank Group. First, leveraging its top-tier credit rating to raise additional resources via private bonds, maximizing public finance impact. Second, de-risking private investments through guarantees and financial instruments to draw in capital. Third, deploying on-the-ground expertise to execute reconstruction effectively.
The reconstruction blueprint presented at the meeting encompasses massive rebuilding of housing, infrastructure, and public services. It also proposes establishing a new Palestinian administrative framework in Gaza. Pledges have poured in, with the United States committing a staggering $10 billion, alongside billions more from other nations.
This structured financial mechanism marks one of the most significant international endeavors in recent years, promising a pathway to stability and prosperity for Gaza’s residents. The World Bank’s active involvement ensures not just oversight, but hands-on partnership for lasting impact.