World Bank to manage Gaza Reconstruction Fund, Ajay Banga outlines three key roles

Washington (The Uttam Hindu): World Bank President Ajay Banga has announced the creation of a dedicated "Gaza Reconstruction and Development Fund" to rebuild war-torn Gaza. This fund will systematically manage funds coming from the international community and ensure their use in reconstruction projects. Banga clarified that the World Bank will play the role of "limited trustee" in this arrangement and the fund will be operated under the direction of the newly formed Board of Peace.

Addressing the first meeting of the Board of Peace in Washington, Banga said that as soon as the UN Security Council resolution was passed, the World Bank immediately initiated the process of establishing the fund. He added that the fund is now established at the World Bank and is fully prepared to receive donations.

Banga stated that transparency will be the key pillar of this entire system. Funding countries have the right to know how and where their funds are being used. To achieve this, strict financial, legal, and monitoring standards will be implemented. To further strengthen accountability, the World Bank has deputized a financial controller to the Board of Peace to ensure adherence to best standards.

Speaking about the World Bank Group's broader role, Banga outlined three key areas: first, optimizing public finance. He explained that the World Bank's high credit rating could help raise additional resources through private bonds. Second, de-risking private investment. This could attract private capital through bank guarantees and financial instruments. Third, the World Bank has on-the-ground experience and expertise that will be utilized in the reconstruction of Gaza.

Banga said the World Bank will not simply be a remote observer, but will play an active role in ensuring the people of Gaza and the region have a chance at a better life. The reconstruction plan presented at the meeting includes a blueprint for large-scale rebuilding of housing, infrastructure, and public services.

A proposal has also been made to create a new Palestinian administrative system in Gaza. Several countries have pledged billions of dollars in aid, with the United States committing $10 billion. With the involvement of the World Bank, Gaza's post-war reconstruction has received a structured and institutionalized financial framework, which is being considered one of the most important international initiatives in recent years.