Washington— Ajay Banga, President of the World Bank, announced the creation of a dedicated Gaza Reconstruction and Development Fund to manage global contributions aimed at rebuilding the war-ravaged territory.
Speaking at the inaugural meeting of the Board of Peace in Washington on Thursday, Banga said the fund was established following the passage of a UN Security Council resolution and is now operational.
“Once the resolution was passed, we set about creating the Gaza Reconstruction and Development Fund at the World Bank. It’s housed there,” Banga said. “The World Bank’s role is that of a limited trustee. 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 added that the fund is “ready to receive the donations” pledged by participating countries.
Focus on Transparency and Oversight
Banga emphasized that financial transparency would be central to the mechanism, assuring donors that strict safeguards would be in place.
“You as donors deserve the right to know that the money is being used in a transparent way,” he said, noting that financial, legal, and oversight standards are being built into the structure.
To reinforce accountability, the World Bank has assigned a financial controller on secondment to the Board of Peace to help establish and maintain robust governance standards.
Beyond Fund Management
Banga outlined three broader roles the World Bank Group could play in supporting Gaza’s recovery beyond serving as trustee.
First, he pointed to leveraging public finance. With its AAA credit rating, the Bank can raise private capital through bond markets to expand available reconstruction resources.
Second, the Bank can help “de-risk” private investment by providing guarantees and financial instruments designed to attract private sector participation.
Third, the institution brings on-the-ground expertise and experience from managing reconstruction and development efforts in other conflict-affected 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,” Banga said.
A Structured Recovery Framework
The reconstruction plan presented at the meeting envisions large-scale rebuilding of housing, infrastructure, and public services in Gaza, alongside the establishment of a new Palestinian administrative authority in the territory.
Several countries pledged billions of dollars in support, with the United States committing $10 billion toward the effort.
The World Bank’s involvement places one of the world’s leading multilateral financial institutions at the center of Gaza’s post-war recovery, marking one of the most structured international funding frameworks proposed for the territory in recent years. (Source: IANS)
