World Bank to Serve as Trustee for Gaza Reconstruction Fund
WASHINGTON– World Bank President Ajay Banga said Thursday that the institution has established a Gaza Reconstruction and Development Fund to manage international contributions aimed at rebuilding the war-ravaged territory, with the Bank acting as a limited trustee under the authority of a newly created Board of Peace.
Speaking at the inaugural meeting of the Board of Peace in Washington, Banga said the fund was set up shortly after the United Nations Security Council approved a resolution paving the way for the reconstruction framework.
“It’s housed there. The World Bank’s role is that of a limited trustee,” Banga said. “We manage the donor contributions coming in, and under the direction of the Board of Peace, we disperse the money for reconstruction and development projects in Gaza.”
He said the fund is ready to receive pledged donations from participating countries.
Banga emphasized that transparency and accountability would be central to the fund’s operations, assuring donors that strict financial and legal safeguards would be enforced. “You as donors deserve the right to know that the money is being used in a transparent way,” he said.
As part of that effort, he noted that the World Bank has assigned a financial controller on secondment to the Board of Peace to help establish and maintain high oversight standards throughout the reconstruction process.
Beyond administering donor funds, Banga outlined three additional ways the World Bank Group could support Gaza’s recovery. He said the institution could leverage public finance by tapping private bond markets, supported by the Bank’s AAA credit rating, to expand available resources. The Bank could also help reduce risk for private investors through guarantees and other financial instruments, encouraging private capital to participate in rebuilding efforts. In addition, Banga said the Bank brings on-the-ground experience and technical expertise from similar reconstruction efforts in other regions.
“We want to be not an arm’s length critical process, but an active participant in giving Gazan people and people in the region the opportunity of the lives they deserve,” he said.
The reconstruction framework presented at the meeting envisions large-scale rebuilding of housing, infrastructure, and public services, alongside the establishment of a new Palestinian administrative authority in Gaza. Several countries pledged billions of dollars toward the effort, including a $10 billion commitment from the United States.
The World Bank’s role places a major multilateral financial institution at the center of post-war recovery planning for Gaza, creating one of the most structured international funding mechanisms proposed for the territory in recent years. (Source: IANS)
