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World Bank Reports Damage to Gaza Critical Infrastructure at $18.5 Bn

Effects of destruction in Khan Yunis after Israel withdrew its ground forces from the southern Gaza Strip (AFP)
Effects of destruction in Khan Yunis after Israel withdrew its ground forces from the southern Gaza Strip (AFP)
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World Bank Reports Damage to Gaza Critical Infrastructure at $18.5 Bn

Effects of destruction in Khan Yunis after Israel withdrew its ground forces from the southern Gaza Strip (AFP)
Effects of destruction in Khan Yunis after Israel withdrew its ground forces from the southern Gaza Strip (AFP)

The World Bank says the Israel-Hamas war has caused damage of around $18.5 billion to Gaza's critical infrastructure, according to a new report published Tuesday.

This is equivalent to 97 percent of the combined economic output of the West Bank and Gaza in 2022, the World Bank said in its interim damage assessment, which covers the period between the onset of the conflict on October 7 and the end of January.

The report, produced with the United Nations and the European Union, found structural damage affected "every sector of the economy," with more than 70 percent of the estimated costs due to the destruction of housing.

The bloodiest-ever Gaza war erupted with Hamas's October 7 attack, which resulted in about 1,160 mostly civilian deaths in Israel, according to an AFP tally of Israeli official figures.

Israel's retaliatory campaign has killed at least 32,916 people, mostly women and children, according to the health ministry in Hamas-run Gaza.

The Israeli military's heavy aerial bombardment in the aftermath of the attack, and its ongoing ground operations inside Gaza, have reduced many areas of the territory to rubble, creating an estimated 26 million tons of debris.

"For several sectors, the rate of damage appears to be leveling off as few assets remain intact," the Bank said.

Beyond the structural damage, the report also found that more than half of Gaza's population were on the brink of famine, with the whole population "experiencing acute food insecurity and malnutrition."

An estimated 84 percent of Gaza's health facilities have been damaged or destroyed, while three quarters of the population have been displaced by the fighting, leaving more than a million people without homes.

The report, created using remote data collection sources, found that Gaza's water and sanitation system had "nearly collapsed," and was delivering less than 5 percent of its pre-war output.

100 percent of Gaza's children were out of school due to the collapse of the education system, while 92 percent of its primary roads were either destroyed or damaged, according to the World Bank.

The report called for "an increase in humanitarian assistance, food aid and food production; the provision of shelter and rapid, cost-effective, and scalable housing solutions for displaced people; and the resumption of essential services."

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Israel’s Retaliatory Responses to Houthis Must Begin by Drawing Intelligence Plan

A person inspects damage at the site where a projectile fired from Yemen landed in Tel Aviv on December 21, 2024 (EPA)
A person inspects damage at the site where a projectile fired from Yemen landed in Tel Aviv on December 21, 2024 (EPA)
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Israel’s Retaliatory Responses to Houthis Must Begin by Drawing Intelligence Plan

A person inspects damage at the site where a projectile fired from Yemen landed in Tel Aviv on December 21, 2024 (EPA)
A person inspects damage at the site where a projectile fired from Yemen landed in Tel Aviv on December 21, 2024 (EPA)

Israel is considering options to respond to repeated attacks fired from Yemen in the past few days, the latest of which was a Houthi missile strike that injured more than a dozen people in Tel Aviv.
But military experts say Israel should first consider an intelligence plan for confronting the new front after it faced significant difficulties in both defending against and responding to the Houthi attacks.
On Saturday morning, Houthis launched a missile that triggered sirens throughout central Israel at 3:44 am. It was the second attack since Thursday.
Israel's military said the projectile landed in Tel Aviv's southern Jaffa area, adding that attempts to intercept a missile from Yemen failed.
“The incident is still being thoroughly investigated,” the army said, adding that following initial investigations by the Israeli Air Force and Home Front Command, “some of the conclusions have already been implemented, both regarding interception and early warning.”
Israeli military experts say the recent Houthi attacks have revealed serious security gaps in Israel's air defense systems.
“The pressing question now is why none of the other of Israel’s air defense layers managed to intercept the warhead,” wrote Yedioth Ahronoth's Ron Ben-Yishai. “The likely explanation is the late detection and the flat trajectory, which prevented the operation of all available defense apparatus.”
He said these incidents might expose a critical vulnerability in the army’s air defense system protecting Israel’s civilian and military home front.
According to Ben-Yishai, two main reasons might explain Saturday’s interception failure.
The first is that the missile was launched in a “flattened” ballistic trajectory, possibly from an unexpected direction.
As a result, Israeli defenses may not have identified it in time, leading to its late discovery and insufficient time for interceptors to operate.
He said the second, and more likely scenario is that Iran has developed a maneuverable warhead.
Such a warhead separates from the missile during the final third of its trajectory and maneuvers mid-flight—executing pre-programmed course changes—to hit its designated target, he wrote.
And while Israel has launched initial investigations into the failure of Israeli defense systems to intercept the missiles, it is now examining the nature, date and location of its response.
When Houthis launched their first missile attack on Israel last Thursday, Prime Minister Benjamin Netanyahu warned them, saying, “The Houthis will learn the hard way.”
But Israeli political analyst Avi Ashkenazi wrote in the Maariv newspaper that Israel should look at reality with open eyes and say out loud that it cannot deal with the Houthi threat from Yemen, and has failed to face them.
Last Thursday, 14 Israeli Air Force fighter jets, alongside refuelers and spy planes, flew some 2,000 kilometers and dropped over 60 munitions on Houthi “military targets” along Yemen’s western coast and near the capital Sanaa.
The targets included fuel and oil depots, two power stations, and eight tugboats used at the Houthi-controlled ports.
But the Maariv newspaper warned about the increasing involvement of Iran in supporting the Houthi forces.
“Iran has invested more in the Houthis in recent weeks following the collapse of the Shiite axis, making the Houthi movement a leader of this axis,” the newspaper noted.
Underscoring the failures of Israel’s air defense systems, Maariv said the “Arrow” missile defense system, Israel's main line of defense against ballistic missiles, had failed four times in a row to intercept missiles, including three launched from Yemen and one from Lebanon.
Yedioth Ahronoth's Ben-Yishai also warned that the threat posed by maneuvering warheads on Iran's heavy, long-range missiles would become existential for Israel should Iran succeed in developing nuclear warheads for these missiles.
Meanwhile, Israel’s Channel 12 said that in recent months, the Middle East has changed beyond recognition.
The channel said that for the first time in more than half a century, a direct and threat-free air corridor has been opened to Iran through the Middle East. Israel will benefit from this corridor to launch almost daily attacks on the border crossings between Syria and Lebanon, it said.
Channel 12 also reported that according to the Israeli military, the new threat-free corridor will help Israel launch a future attack on Iran's nuclear facilities.
“From Israel's perspective, the fall of the Assad regime and the collapse of the Iranian ring of fire are changing the balance of power in the Middle East,” the report added.