World Bank Pledges $250 Million for Lebanon Reconstruction

The World Bank has approved an initial $250 million financing package to assist Lebanon in recovering from extensive damage sustained during the 2024 conflict between Hezbollah and Israel. This decision marks the first installment of a broader funding framework aimed at rebuilding vital infrastructure and public services.

According to the World Bank, the approved funds will target urgent repairs to critical public systems and infrastructure in regions heavily impacted by the fighting. The project also includes provisions for the sustainable removal and management of rubble and debris from affected zones. This financial commitment is part of a scalable $1 billion framework designed to adapt to evolving reconstruction demands over time.

Lebanon’s Prime Minister Nawaf Salam acknowledged the significance of the initiative, emphasizing that the assistance will reinforce state-led efforts to restore essential services and infrastructure. He also noted that the project will help mobilize further international financing required for long-term recovery.

Widespread Destruction and Rising Recovery Costs

The armed conflict, which erupted in September 2024 and concluded with a ceasefire in late November, inflicted severe damage across large sections of Lebanon. Intense fighting primarily affected Hezbollah-dominated regions in the south and east of the country, as well as the southern suburbs of Beirut. The destruction added substantial strain to a nation already grappling with a prolonged financial and economic crisis that began in 2019.

Earlier assessments by the World Bank placed the overall cost of reconstruction and recovery at approximately $11 billion. The initial $250 million allocation is intended to address the most pressing infrastructure needs and to lay the groundwork for expanded support under the broader funding framework.