DaysofPal— The World Bank has begun establishing a dedicated fund for the reconstruction and development of the Gaza Strip, with initial international pledges totaling $17 billion, according to an announcement by Bank President Ajay Banga on Thursday.
Speaking at the inaugural meeting of the newly created Peace Council in Washington, Banga said the fund will serve as the central mechanism for collecting donor contributions, while the council will oversee how the money is spent to rebuild critical infrastructure and restore essential public services.
Banga stressed that the reconstruction effort would operate under a comprehensive legal, financial, and supervisory framework aimed at ensuring full transparency and accountability in the use of funds.
To reinforce confidence among donors, the World Bank plans to assign a financial observer within the Peace Council’s structure.
This role will monitor spending and integrate strict auditing standards and governance practices into the reconstruction process, addressing concerns about corruption or mismanagement in a complex post-conflict environment.
In addition to government contributions, the World Bank Group intends to use its top-tier AAA credit rating to raise further financing through international bond markets.
Officials say this approach will help mobilize large-scale private investment while reducing risks for investors operating in volatile conditions.
The fund’s launch follows a major pledge unveiled by Donald Trump during the same meeting. Trump said the United States would contribute $10 billion, with an additional $7 billion pledged collectively by other council members.
Countries identified as participating in the assistance package include Saudi Arabia, Qatar, United Arab Emirates, Kazakhstan, Azerbaijan, Morocco, Bahrain, Uzbekistan, and Kuwait.
Meanwhile, Japan is expected to organize a separate fundraising initiative to support rebuilding efforts.
According to a report by the Financial Times, JPMorgan Chase is in discussions to provide banking services to the Peace Council, including handling payments and financial transfers related to reconstruction activities.
Trump first introduced the Peace Council during a visit to Davos on the sidelines of the World Economic Forum last month.
However, several U.S. allies within the Group of Seven and the European Union have voiced reservations, citing uncertainty over the council’s legal status, institutional authority, and executive powers.
The creation of the fund comes as international concern grows over the scale of destruction in Gaza, where widespread infrastructure damage, displacement, and shortages of basic services have left millions in need of urgent assistance.
Analysts say the effectiveness of the initiative will depend on sustained donor commitment, robust governance structures, and the ability of implementing agencies to operate safely and efficiently on the ground.
If successfully implemented, the fund could become one of the largest coordinated reconstruction efforts in the region’s recent history, aimed at stabilizing Gaza’s economy and restoring essential living conditions for its population.
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