World Bank President Ajay Banga has announced a dedicated Gaza Reconstruction and Development Fund to accelerate the reconstruction of war-hit Gaza. This fund will manage the funds received from the international community in a systematic manner and ensure their effective utilization in reconstruction projects.

The Board of Peace Fund has been established within the World Bank

Addressing the first meeting of the Board of Peace held in Washington, Banga said that the World Bank had immediately started the process of establishing the fund as soon as the UN Security Council resolution was passed. He said that this fund has now been established within the World Bank and is fully prepared to receive funds from donors.

What will be the role of the World Bank?

Banga clarified that in this arrangement the World Bank Limited will play the role of trustee, while the fund will be operated under the instructions of the newly formed Board of Peace. He stressed that the basis of the entire system will be transparency and accountability, so that contributing countries have clear information about which projects and for what purpose their funds are being used. For this, strict standards related to financial, legal and monitoring will be implemented. Also, to further strengthen accountability, the World Bank has attached a Financial Controller to the Board of Peace on deputation.

Three main priorities of the World Bank

Highlighting the broader role of the World Bank Group, Banga cited three key priorities. First, the optimal use of public finance, including the possibility of mobilizing additional resources through private bonds through the World Bank’s high credit rating. Second, de-risking private investment, which will attract private capital through guarantees and financial instruments. Third, the World Bank’s on-the-ground expertise and experience, which will be used in Gaza’s reconstruction efforts. He said that the World Bank will not be just a distant monitoring institution, but will play an active role in the reconstruction process, so that better life and basic facilities can be provided to the people of Gaza and the entire region. The reconstruction plan presented at the meeting includes a blueprint for large-scale reconstruction of housing, infrastructure and public services. Apart from this, a proposal has also been made to establish a new Palestinian administrative system in Gaza. Many countries have committed to provide billions of dollars in aid. Experts believe that the World Bank’s participation has provided an organized, transparent, and institutionalized financial framework for the post-conflict reconstruction of Gaza, which is considered one of the major international initiatives in recent years.