World Bank to oversee new Gaza reconstruction fund under global peace board

The president of the World Bank, Ajay Banga, has announced the establishment of a dedicated Gaza Reconstruction and Development Fund to coordinate global donations aimed at rebuilding the devastated territory.

Speaking in Washington at the inaugural meeting of the newly formed Board of Peace, Banga said the fund had been created following the passage of a United Nations Security Council resolution and would be housed within the World Bank. The institution, he explained, would serve as a “limited trustee”, managing incoming contributions and releasing funds for approved projects under the board’s direction.

“We manage the donor contributions coming in and, under the direction of the Board of Peace, we disburse the money for reconstruction and development projects in Gaza,” Banga said, adding that the mechanism was now ready to receive the pledges made by participating countries.

He stressed that transparency would be fundamental to the initiative. Donor governments, he said, were entitled to clear oversight of how their money was spent. To that end, the fund would operate under strict financial, legal and monitoring standards.

As part of these safeguards, the World Bank has seconded a financial controller to the Board of Peace to help establish robust accountability procedures and ensure international best practice is followed.

Beyond administering the fund, Banga outlined a broader role for the World Bank Group in Gaza’s recovery. He said the institution could leverage its AAA credit rating to raise additional resources on global capital markets, helping to expand the pool of available finance.

The Bank could also play a part in “de-risking” private investment, offering guarantees and other financial instruments designed to encourage companies and investors to participate in reconstruction efforts.

In addition, Banga pointed to the organisation’s on-the-ground expertise and experience of delivering large-scale recovery programmes in other conflict-affected regions.

He emphasised that the Bank intended to take an active role in supporting Gaza’s revival rather than remaining at arm’s length. The aim, he said, was to help create the conditions for long-term stability and improved living standards for Gazans and the wider region.

The reconstruction blueprint presented at the meeting sets out plans for extensive rebuilding of homes, infrastructure and essential public services. It also envisages the establishment of a new Palestinian administrative authority in Gaza.

Several governments have pledged billions of dollars towards the initiative, including a commitment of $10bn from the United States.

The World Bank’s central involvement signals the creation of one of the most structured and internationally backed financial frameworks yet proposed for Gaza’s post-war recovery.

With IANS inputs