World Bank Approves US$250 Million Project for Lebanon’s Recovery and Reconstruction

Beirut: The World Bank Board of Executive Directors has approved a US$250 million financing package to aid Lebanon in repairing and reconstructing critical public infrastructure in areas impacted by conflict. The Lebanon Emergency Assistance Project (LEAP) is designed to address urgent repair needs, manage rubble sustainably, and maximize economic and social impact through a phased approach to response, recovery, and reconstruction.

According to National News Agency - Lebanon, the Rapid Damage and Needs Assessment (RDNA) estimated the total direct damages from the conflict, spanning October 8, 2023, to December 20, 2024, at US$7.2 billion, with reconstruction and recovery needs pegged at US$11 billion. Damage to vital infrastructure and buildings essential for economic activity and community health and safety was assessed at US$1.1 billion across sectors such as transport, water, energy, municipal services, education, and healthcare. LEAP aims to facilitate the restoration of public infrastructure and buildings, crucial for Lebanon's economic and social recovery.

"Given Lebanon's large reconstruction needs, the LEAP is structured as a US$1 billion scalable framework with an initial US$250 million contribution from the World Bank," stated Jean-Christophe Carret, World Bank Middle East Division Director. This initiative is designed to attract additional financing and support from development partners, aligning with the government's ongoing reform agenda to enhance Lebanon's recovery and long-term reconstruction.

The World Bank's financing will support immediate recovery activities, including the management of rubble to optimize reuse and recycling. It will also expedite the repair and recovery of essential services such as water, energy, transport, health, education, and municipal services. Moreover, the LEAP framework will back the reconstruction of severely damaged infrastructure, commencing with designs and assessments funded by the initial World Bank financing.

Informed by global reconstruction projects, LEAP employs a transparent, data-driven prioritization method approved by the Council of Ministers. This approach integrates public recovery and reconstruction investments to restore social services and foster economic growth in Lebanon's conflict-affected regions.

To ensure efficient implementation, the government has implemented critical reforms within the Council for Development and Reconstruction (CDR), including establishing a functional Board of Directors and streamlining decision-making processes. These reforms are part of a broader agenda to manage Lebanon's recovery and reconstruction effectively, adhering to principles of transparency and accountability.

LEAP will be executed under the strategic oversight of the Prime Minister's Office, with coordination across line ministries through the Council of Ministers. The Ministry of Public Works and Transport will lead the project execution, while the Ministry of Environment will oversee environmental and social requirements, including rubble management.

Additionally, the World Bank will enhance LEAP's implementation with the support of an international lender's engineering firm to ensure compliance across technical, environmental, social, fiduciary, and anti-money laundering aspects, ensuring the project meets high standards of compliance, integrity, and effectiveness.

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