The World Bank Board of Executive Directors recently approved $250 million in financing to Lebanon to support the most urgent repair and reconstruction of damaged critical public infrastructure and lifeline services, and the sustainable management of rubble in conflict-affected areas.
The Lebanon Emergency Assistance Project (LEAP) will prioritize and sequence interventions to maximize economic and social impact within the shortest timeframe and provide a phased approach to response, recovery and reconstruction.
“Given Lebanon’s large reconstruction needs, the LEAP is structured as a $1 billion scalable framework with an initial $250 million contribution from the World Bank and the ability to efficiently absorb additional financing—whether grants or loans—under a unified, government-led implementation structure that emphasizes transparency, accountability and results”, said Jean-Christophe Carret, World Bank Middle East division director.
Lebanon’s reconstruction and recovery needs $11 billion
The World Bank’s Rapid Damage and Needs Assessment of the impact of the conflict in Lebanon between October 8, 2023, and December 20, 2024, estimated total direct damages across 10 sectors at $7.2 billion, and reconstruction and recovery needs at $11 billion.
Damage to critical infrastructure and buildings that are critical to economic activity and the health and safety of communities was estimated at $1.1 billion across the transport, water, energy, municipal services, education and healthcare sectors. Considering the scale of needs, the LEAP was designed to support the restoration of public infrastructure and buildings, given that this is a precondition to economic and social recovery.
“This framework offers a credible vehicle for development partners to align their support, alongside continued progress on the Government’s reform agenda, and maximize collective impact in support of Lebanon’s recovery and long-term reconstruction,” added Carret.
Financing to support rubble management
The World Bank’s financing to Lebanon will support immediate response activities required to accelerate recovery and create the conditions that favor a return to normality, including the safe and well-planned management of rubble that maximizes the reuse and recycling of rubble.
It will also provide critical support to the rapid repair and recovery of essential services, such as water, energy, transport, health, education and municipal services. Finally, the LEAP framework will also support the reconstruction of severely damaged infrastructure, starting with designs and environment and social assessments financed through World Bank initial financing.
LEAP uses a transparent, data-driven area-based prioritization methodology endorsed by the Council of Ministers, which provides an integrated package of public recovery and reconstruction investments to restore social services and promote economic recovery and growth in conflict-affected areas of Lebanon.
Similarly, to ensure the project’s operational readiness and its efficient and prompt implementation, the government has undertaken critical reform measures in the project’s implementing agency, the Council for Development and Reconstruction (CDR).
These include the establishment of a complete and functional CDR Board of Directors and streamlining administrative and decision-making processes for the LEAP, in line with international best practices for emergency projects. These measures are part of a broader institutional reform agenda that positions and equips CDR to efficiently manage the scale and urgency of Lebanon’s recovery and reconstruction effort, guided by transparency, efficiency and accountability principles.
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LEAP to coordinate with key ministries
The LEAP will be implemented under the strategic guidance of the Prime Minister’s Office, with coordination across line ministries at the level of the Council of Ministers. The Ministry of Public Works and Transport will have overall leadership and responsibility for project execution, and the Ministry of Environment will provide oversight for environmental and social requirements, including for rubble management.
In addition, the World Bank will support the Lebanon Emergency Assistance Project with enhanced implementation and supervision support measures, with the recruitment of an international lender’s engineering firm to conduct enhanced compliance due diligence across the entire framework.
This will include oversight of technical, environmental and social, fiduciary aspects and Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) detection. This mechanism will help ensure the project is executed with the highest standards of compliance, integrity and effectiveness.
