World Bank Hurdles: Challenges in Lebanon’s Reconstruction Efforts

In a recent report titled “Rapid Damage and Needs Assessment in Lebanon,” the World Bank has drawn attention to the dire situation in Lebanon following the US-led Israeli aggression. This report not only highlights the extensive damage but also aligns with ongoing anti-resistance efforts aimed at obstructing the reconstruction of Lebanon’s war-affected regions.

The report reveals that the areas most severely impacted by the conflict are the governorates of Nabatieh and South Lebanon, with Mount Lebanon—home to many Hezbollah supporters—also suffering significant damage. Sheikh Naim Qassem, the Secretary General of Hezbollah, emphasized during an interview that the resistance movement is committed to resisting Israeli occupation. “We are giving the [Lebanese] state the opportunity to work politically to prove to the whole world that Israel does not withdraw through politics but through resistance,” he asserted.

Sheikh Qassem further elaborated on the importance of the reconstruction process, linking it to broader reforms necessary for the country’s recovery. He highlighted the targeted efforts against specific groups affiliated with the resistance, stating, “The government must carefully study how to carry out the reconstruction process in line with the reform and rescue steps to revive the country.” He added, “Sheltering people is a great achievement that we have accomplished … although this is part of the state’s responsibility.”

The World Bank’s report places the total direct damages from the September-October aggression at a staggering $6.8 billion, while economic losses are estimated at $7.2 billion. This brings the total losses to approximately $14 billion, marking a significant increase from an earlier estimate of $8.5 billion—an escalation of 65%. Notably, this figure does not account for the compensation paid by Hezbollah, which has already reached around $650 million, sourced from donations by the Iranian people.

Furthermore, the report projects that the “recovery and reconstruction needs” will amount to $11 billion, with $8.4 billion required between 2025 and 2027. The housing sector alone faces losses of $4.6 billion, with reconstruction needs expected to reach $6.3 billion. The remaining funds will be allocated for rebuilding infrastructure and public services, comprising 57% of the total recovery requirements.

The World Bank has outlined a staged approach for funding the reconstruction, divided into three phases:

• Immediate Term (2025): $1.6 billion
• 2026-2027: $2.4 billion
• 2028-2030: $1.8 billion

Amid these financial challenges, the Lebanese government has taken a controversial stance by targeting citizens who have begun to rebuild their homes, rather than confronting the Israeli occupation. Reports indicate that mechanized patrols from the Internal Security Forces are being dispatched to document and penalize those taking the initiative to restore their properties. Meanwhile, the ongoing attacks from the occupation regime continue without official response, leaving over 100,000 residents of border towns displaced and unable to return to their villages.

According to a source familiar with the situation, the reconstruction efforts—both locally and internationally funded—are currently stalled due to pending land border demarcation negotiations with the Israeli entity. This has exacerbated the delays in addressing the urgent reconstruction needs of affected communities.

In a related development, Axios has reported that an agreement between Tel Aviv, Washington, and Beirut allows Israeli forces to maintain control over five strategic positions in Lebanon for an extended period. This arrangement is purportedly contingent on the stabilization of southern Lebanon by the Lebanese army, ensuring that Hezbollah is no longer perceived as a threat.

“(The) Aoun presidency is a historic opportunity to change the reality in Lebanon for the better,” a U.S. official was quoted by Axios, highlighting the potential for transformative change amidst the ongoing crisis.

As Lebanon grapples with these multifaceted challenges, the international community watches closely, understanding that the path to recovery will be fraught with political, social, and economic obstacles. Only time will reveal if the efforts for reconstruction can overcome the prevailing resistance and pave the way for a more stable future for Lebanon.