Reconstruction Studies Begin in Lebanon, Costs Exceed $6 Billion

A man walks past near the rubble of a building in Beirut's southern suburbs, after the ceasefire between Israel and Hezbollah, Lebanon November 29, 2024. REUTERS/Thaier Al-Sudani
A man walks past near the rubble of a building in Beirut's southern suburbs, after the ceasefire between Israel and Hezbollah, Lebanon November 29, 2024. REUTERS/Thaier Al-Sudani
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Reconstruction Studies Begin in Lebanon, Costs Exceed $6 Billion

A man walks past near the rubble of a building in Beirut's southern suburbs, after the ceasefire between Israel and Hezbollah, Lebanon November 29, 2024. REUTERS/Thaier Al-Sudani
A man walks past near the rubble of a building in Beirut's southern suburbs, after the ceasefire between Israel and Hezbollah, Lebanon November 29, 2024. REUTERS/Thaier Al-Sudani

As Lebanese return to their ruined cities and villages after the ceasefire between Hezbollah and Israel, the main question on their minds is: “When will reconstruction begin, and are the funds available, and if so, where will they come from?”

Unlike the aftermath of the 2006 war, which saw funds flow in automatically, the situation now is different.

The international conditions for reconstruction may be tougher, and Lebanon, already struggling with a financial and economic collapse since 2019, will not be able to contribute any funds due to the severity of the recent war.

Former MP Ali Darwish, a close ally of Prime Minister Najib Mikati, said a plan for reconstruction would likely be ready within a week.

The plan will identify the committees to assess damage, the funds for compensation, and whether the South Lebanon Council and Higher Relief Commission will be involved.

Speaking to Asharq Al-Awsat, Darwish explained that the matter is being discussed with international partners, and more details will emerge soon.

He added that the process is unfolding in stages, beginning with the ceasefire, followed by army deployment, and eventually leading to reconstruction.

To reassure its supporters, many of whom have lost their homes and been displaced, Hezbollah promised before the ceasefire that funds were ready for reconstruction.

Sources close to the group say Iran has set aside $5 billion for the effort, with part of it already available to Hezbollah and the rest arriving soon.

Political analyst Dr. Qassem Qassir, familiar with Hezbollah’s operations, said a reconstruction fund would be created, involving Iran, Arab and Islamic countries, international partners, religious leaders, and Lebanese officials.

He added that preparatory work, including committee formations and studies, has already begun.

However, many affected people are hesitant to start rebuilding, wanting to ensure they will be reimbursed.

Some reports suggest that party-affiliated groups advised not making repairs until damage is properly documented by the relevant committees. Citizens were told to keep invoices so that those who can pay upfront will be reimbursed later.

Ahmad M, 40, from Tyre, told Asharq Al-Awsat he began repairing his damaged home, paying extra to speed up the process. The high costs of staying in a Beirut hotel have become unbearable, and he can no longer wait.

Economist Dr. Mahmoud Jebaii says that accurate estimates of reconstruction costs will depend on specialized committees assessing the damage. He estimates the cost of destruction at $6 billion and economic losses at $7 billion, bringing total losses from the 2024 war to around $13 billion, compared to $9 billion in 2006.

Speaking to Asharq Al-Awsat, Jebaii explained that the 2024 destruction is much greater due to wider military operations across the south, Bekaa, and Beirut.

About 110,000 housing units were damaged, with 40,000 to 50,000 completely destroyed and 60,000 severely damaged. Additionally, 30 to 40 front-line villages were entirely destroyed.

Jebaii emphasized that Lebanon must create a clear plan for engaging the Arab and international communities, who prefer reconstruction to be managed through them.

This could involve an international conference followed by the creation of a committee to assess the damage and confirm the figures, after which financial support would be provided.

He added that Lebanon’s political system and ability to implement international decisions will be key to advancing reconstruction.



What Curbs Have India and Pakistan Imposed on Each Other after the Kashmir Attack?

Pakistani security officials stand guard outside the Parliament building as members of the National Assembly (Lower House of the Parliament) meet to discuss recent tensions with India, in Islamabad, Pakistan, 05 May 2025. EPA/SOHAIL SHAHZAD
Pakistani security officials stand guard outside the Parliament building as members of the National Assembly (Lower House of the Parliament) meet to discuss recent tensions with India, in Islamabad, Pakistan, 05 May 2025. EPA/SOHAIL SHAHZAD
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What Curbs Have India and Pakistan Imposed on Each Other after the Kashmir Attack?

Pakistani security officials stand guard outside the Parliament building as members of the National Assembly (Lower House of the Parliament) meet to discuss recent tensions with India, in Islamabad, Pakistan, 05 May 2025. EPA/SOHAIL SHAHZAD
Pakistani security officials stand guard outside the Parliament building as members of the National Assembly (Lower House of the Parliament) meet to discuss recent tensions with India, in Islamabad, Pakistan, 05 May 2025. EPA/SOHAIL SHAHZAD

Nuclear-armed neighbors India and Pakistan have announced a raft of measures against each other as tensions mount after 26 men were killed in an attack targeting Hindu tourists in Kashmir last month, Reuters said.

Here is a look at the tit-for-tat punitive steps announced by the South Asian nations amid mutual finger-pointing in the latest crisis:

TRAVEL

India and Pakistan have shut their only open land border and closed their airspace to each other's airlines.

They have also barred all ships bearing the other's flag from visiting their ports, and said that their own ships will no longer visit the other's ports.

New Delhi also cancelled almost all visas issued to Pakistanis and set a deadline for them to return to Pakistan.

TRADE

Pakistan has paused bilateral agreements and suspended all trade with India, which has also banned the import of goods coming from or transiting via Pakistan.

WATER

India has suspended the 1960 Indus Waters Treaty which regulated sharing of water of the Indus river system between the countries.

Pakistan, which is heavily dependent on the water for its hydropower and irrigation, has said any attempt to stop or divert its flow will be considered an "act of war".

DIPLOMACY

Both countries have declared each other's defense advisers in missions in New Delhi and Islamabad persona non grata, and reduced the strength of their embassies.

POSTAL SERVICE

India has suspended exchange of all categories of inbound mail and parcels from Pakistan through air and surface routes.

LOANS

India has asked the International Monetary Fund to review its loans to Pakistan, whose recent borrowings from the global lender include a $7 billion loan secured in September, followed by a $1.3 billion climate resilience loan in March.

SOCIAL MEDIA

India has banned 16 Pakistani YouTube channels, including those of media outlets such as Dawn News as well as channels of sportspersons such as former cricketer Shoaib Akhtar.

It has also blocked social media accounts of some popular Pakistani personalities, including actor Fawad Khan, whose Instagram account has been blocked, and former Prime Minister Imran Khan, whose X account is no longer visible in India.

SPORTS

India's Olympic javelin medalist Neeraj Chopra has rescinded his invitation to Pakistani rival Arshad Nadeem to attend his meet in Bengaluru this month, saying it was "completely out of the question" after the Kashmir attack.

He had earlier invited Paris Olympics champion Nadeem to the meet - titled Neeraj Chopra Classic - which will bring the world's top throwers together from May 24.