The World Bank Board of Executive Directors has approved $250 million in financing for Lebanon to aid in the reconstruction of critical public infrastructure and the management of rubble in areas affected by the Israel-Hezbollah war.
“The Lebanon Emergency Assistance Project (LEAP) will prioritize and sequence interventions to maximize economic and social impact within the shortest timeframe and provide a phased approach to response, recovery and reconstruction,” the World Bank said in a statement on Wednesday.
The Rapid Damage and Needs Assessment (RDNA) of the impact of the conflict between Israel and Hezbollah between October 8, 2023, and December 20, 2024, estimated total direct damages across 10 sectors at $7.2 billion, and reconstruction and recovery needs at $11 billion.
Damage to critical infrastructure and buildings that are critical to economic activity and to the health and safety of communities was estimated at $1.1 billion across the transport, water, energy, municipal services, education and health care sectors. Considering the scale of needs, the LEAP was designed to support restoration of public infrastructure and buildings, given this is a precondition to economic and social recovery.
“Given Lebanon’s large reconstruction needs, the LEAP is structured as a $1 billion scalable framework with an initial $250 million contribution from the World Bank and the ability to efficiently absorb additional financing—whether grants or loans—under a unified, government-led implementation structure that emphasizes transparency, accountability, and results,” said World Bank Middle East Division Director Jean-Christophe Carret.
“This framework offers a credible vehicle for development partners to align their support, alongside continued progress on the Government’s reform agenda, and maximize collective impact in support of Lebanon’s recovery and long-term reconstruction,” he added.
The WB financing will support immediate response activities required to accelerate recovery and create the conditions that favor a return to normality, including the safe and well-planned management of rubble that maximizes the reuse and recycling of rubble. Critical support will also be provided to the rapid repair and recovery of essential services, such as water, energy, transport, health, education and municipal services.
The LEAP framework will also support the reconstruction of severely damaged infrastructure, starting with designs and environment and social assessments financed through WB initial financing.
To ensure the Project’s operational readiness and its efficient and prompt implementation, the Lebanese government has undertaken critical reform measures in the project’s implementing agency, the Council for Development and Reconstruction (CDR), the World Bank said in its statement.
The measures include the establishment of a complete and functional CDR Board of Directors and streamlining administrative and decision-making processing for the LEAP, in line with international best practices for emergency projects.
