World Bank to Manage Gaza Reconstruction Fund as "Limited Trustee"

Speaking at the inaugural meeting of the Board of Peace in Washington on Thursday, Banga said that once the UN Security Council resolution was passed, the World Bank "set about creating the Gaza Reconstruction and Development Fund at the World Bank."

"It's housed there. The World Bank's role is that of a limited trustee," he 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."

The fund, he said, is "ready to receive the donations" pledged by participating countries.

Banga emphasised that financial transparency would be central to the mechanism. "You as donors deserve the right to know that the money is being used in a transparent way," he said, adding that financial, legal, and oversight standards would be put in place.

To reinforce accountability, he said the World Bank has "assigned a financial controller... on a secondment basis to the Board of Peace to ensure that we can try and help build the best standards in this process."

Beyond managing funds, Banga outlined three broader roles the World Bank Group could play in supporting Gaza's reconstruction.

"The first is leveraging of public finance," he said, noting that the Bank's AAA credit rating allows it "to leverage private bond money to help to create the resources we need."

"The second is we can de-risk private investing," he added, signalling that the Bank could provide guarantees or financial instruments to attract private capital.

"And the third is we have people on the ground and expertise and knowledge of doing this kind of work in other markets."

Banga stressed that the Bank does not intend to be a passive participant. "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."

The reconstruction plan presented at the meeting envisages large-scale rebuilding of housing, infrastructure, and public services, alongside the creation of a new Palestinian administrative authority in Gaza. Several countries pledged billions of dollars in support, with the United States committing $10 billion.

The World Bank's involvement places a major multilateral financial institution at the centre of the post-war Gaza recovery effort, marking one of the most structured international funding frameworks proposed for the territory in recent years.

- IANS