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.



Iran-Israel War: A Lifeline for Netanyahu?

FILE - Israeli Prime Minister Benjamin Netanyahu attends a ceremony on the eve of Israel's Remembrance Day for fallen soldiers at the Yad LaBanim Memorial in Jerusalem, on April 29, 2025. (Abir Sultan/Pool Photo via AP, File)
FILE - Israeli Prime Minister Benjamin Netanyahu attends a ceremony on the eve of Israel's Remembrance Day for fallen soldiers at the Yad LaBanim Memorial in Jerusalem, on April 29, 2025. (Abir Sultan/Pool Photo via AP, File)
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Iran-Israel War: A Lifeline for Netanyahu?

FILE - Israeli Prime Minister Benjamin Netanyahu attends a ceremony on the eve of Israel's Remembrance Day for fallen soldiers at the Yad LaBanim Memorial in Jerusalem, on April 29, 2025. (Abir Sultan/Pool Photo via AP, File)
FILE - Israeli Prime Minister Benjamin Netanyahu attends a ceremony on the eve of Israel's Remembrance Day for fallen soldiers at the Yad LaBanim Memorial in Jerusalem, on April 29, 2025. (Abir Sultan/Pool Photo via AP, File)

The Iran-Israel war has helped strengthen Israeli Prime Minister Benjamin Netanyahu domestically and overseas, just as his grip on power looked vulnerable.

On the eve of launching strikes on Iran, his government looked to be on the verge of collapse, with a drive to conscript ultra-Orthodox Jews threatening to scupper his fragile coalition.

Nearly two years on from Hamas's unprecedented attack in 2023, Netanyahu was under growing domestic criticism for his handling of the war in Gaza, where dozens of hostages remain unaccounted for, said AFP.

Internationally too, he was coming under pressure including from longstanding allies, who since the war with Iran began have gone back to expressing support.

Just days ago, polls were predicting Netanyahu would lose his majority if new elections were held, but now, his fortunes appear to have reversed, and Israelis are seeing in "Bibi" the man of the moment.

– 'Reshape the Middle East' –

For decades, Netanyahu has warned of the risk of a nuclear attack on Israel by Iran -- a fear shared by most Israelis.

Yonatan Freeman, a geopolitics expert at the Hebrew University of Jerusalem, said Netanyahu's argument that the pre-emptive strike on Iran was necessary draws "a lot of public support" and that the prime minister has been "greatly strengthened".

Even the opposition has rallied behind him.

"Prime Minister Benjamin Netanyahu is my political rival, but his decision to strike Iran at this moment in time is the right one," opposition leader Yair Lapid wrote in a Jerusalem Post op-ed.

A poll published Saturday by a conservative Israeli channel showed that 54 percent of respondents expressed confidence in the prime minister.

The public had had time to prepare for the possibility of an offensive against Iran, with Netanyahu repeatedly warning that Israel was fighting for its survival and had an opportunity to "reshape the Middle East."

During tit-for-tat military exchanges last year, Israel launched air raids on targets in Iran in October that are thought to have severely damaged Iranian air defenses.

Israel's then-defense minister Yoav Gallant said the strikes had shifted "the balance of power" and had "weakened" Iran.

"In fact, for the past 20 months, Israelis have been thinking about this (a war with Iran)," said Denis Charbit, a political scientist at Israel's Open University.

Since Hamas's October 7, 2023 attack on Israel, Netanyahu has ordered military action in Gaza, against the Iran-backed Hezbollah group in Lebanon and the Houthis in Yemen, as well as targets in Syria where long-time leader Bashar al-Assad fell in December last year.

"Netanyahu always wants to dominate the agenda, to be the one who reshuffles the deck himself -- not the one who reacts -- and here he is clearly asserting his Churchillian side, which is, incidentally, his model," Charbit said.

"But depending on the outcome and the duration (of the war), everything could change, and Israelis might turn against Bibi and demand answers."

– Silencing critics –

For now, however, people in Israel see the conflict with Iran as a "necessary war," according to Nitzan Perelman, a researcher specialized in Israel at the National Center for Scientific Research (CNRS) in France.

"Public opinion supports this war, just as it has supported previous ones," she added.

"It's very useful for Netanyahu because it silences criticism, both inside the country and abroad."

In the weeks ahead of the Iran strikes, international criticism of Netanyahu and Israel's military had reached unprecedented levels.

After more than 55,000 deaths in Gaza, according to the health ministry in the Hamas-run territory, and a blockade that has produced famine-like conditions there, Israel has faced growing isolation and the risk of sanctions, while Netanyahu himself is the subject of an international arrest warrant for alleged war crimes.

But on Sunday, two days into the war with Iran, the Israeli leader received a phone call from European Commission President Ursula von der Leyen, while Foreign Minister Gideon Saar has held talks with numerous counterparts.

"There's more consensus in Europe in how they see Iran, which is more equal to how Israel sees Iran," explained Freeman from the Hebrew University of Jerusalem.

German Chancellor Friedrich Merz said Tuesday that Israel was doing "the dirty work... for all of us."

The idea that a weakened Iran could lead to regional peace and the emergence of a new Middle East is appealing to the United States and some European countries, according to Freeman.

But for Perelman, "Netanyahu is exploiting the Iranian threat, as he always has."