BEIRUT: The cost of reconstruction and recovery for Lebanon following the 14-month Israel-Hezbollah war is estimated at $11 billion, the World Bank said in a new report Friday.
The war killed over 4,000 people in Lebanon, displaced hundreds of thousands and caused widespread destruction in the nation.
The report by the World Bank’s Lebanon Rapid Damage and Needs Assessment covered damage and losses in ten sectors across the country from Oct. 8, 2023 until Dec. 20, 2024.
Hezbollah began firing rockets across the border on Oct. 8, 2023, one day after a deadly Hamas-led incursion into southern Israel that sparked the war in Gaza. Israel responded with shelling and airstrikes in Lebanon, and the two sides became locked in an escalating conflict that became a full-blown war in late September. A US-brokered ceasefire went into effect in late November.
The World Bank report estimated that of the $11 billion in reconstruction and recovery needs, $3 to $5 billion will need to be publicly financed, including for infrastructure sectors. It added that private financing is required for about $6 to $8 billion of the costs, mostly in the housing, commerce, industry, and tourism sectors.
The report said the economic cost of the conflict on Lebanon totals $14 billion, with damage to physical structures amounting to $6.8 billion and economic losses from reduced productivity, foregone revenues, and operating costs reaching $7.2 billion.
Housing has been the hardest-hit sector with damages estimated at $4.6 billion.
The report found that the conflict resulted in Lebanon’s real gross domestic product contracting by 7.1 percent in 2024, a significant setback compared to a projected growth of 0.9 percent had the war not happened.
By the end of 2024, Lebanon’s cumulative GDP decline since 2019 had approached 40 percent.
World Bank estimates $11 billion needed for reconstruction of Lebanon after Israel-Hezbollah war
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World Bank estimates $11 billion needed for reconstruction of Lebanon after Israel-Hezbollah war
- Of the $11 billion in reconstruction and recovery needs, $3 to $5 billion will need to be publicly financed
- Housing has been the hardest-hit sector with damages estimated at $4.6 billion
UN chief condemns Israeli law blocking electricity, water for UNRWA facilities
- The agency provides education, health and aid to millions of Palestinians in Gaza, the West Bank, Jordan, Lebanon and Syria
United Nations Secretary General Antonio Guterres condemned on Wednesday a move by Israel to ban electricity or water to facilities owned by the UN Palestinian refugee agency, a UN spokesperson said.
The spokesperson said the move would “further impede” the agency’s ability to operate and carry out activities.
“The Convention on the Privileges and Immunities of the United Nations remains applicable to UNRWA (United Nations Relief and Works Agency for Palestine Refugees in the Near East), its property and assets, and to its officials and other personnel. Property used by UNRWA is inviolable,” Stephane Dujarric, spokesman for the secretary-general, said while adding that UNRWA is an “integral” part of the world body.
UNRWA Commissioner General Phillipe Lazzarini also condemned the move, saying that it was part of an ongoing “ systematic campaign to discredit UNRWA and thereby obstruct” the role it plays in providing assistance to Palestinian refugees.
In 2024, the Israeli parliament passed a law banning the agency from operating in the country and prohibiting officials from having contact with the agency.
As a result, UNRWA operates in East Jerusalem, which the UN considers territory occupied by Israel. Israel considers all Jerusalem to be part of the country.
The agency provides education, health and aid to millions of Palestinians in Gaza, the West Bank, Jordan, Lebanon and Syria. It has long had tense relations with Israel but ties have deteriorated sharply since the start of the war in Gaza and Israel has called repeatedly for UNRWA to be disbanded, with its responsibilities transferred to other UN agencies.
The prohibition of basic utilities to the UN agency came as Israel also suspended of dozens of international non-governmental organizations working in Gaza due to a failure to meet new rules to vet those groups.
In a joint statement, Canada, Denmark, Finland, France, Iceland, Japan, Norway, Sweden, Switzerland and the United Kingdom said on Tuesday such a move would have a severe impact on the access of essential services, including health care. They said one in three health care facilities in Gaza would close if international NGO operations stopped.
