The World Bank has approved $250 million in financing for Lebanon as part of an ambitious new emergency assistance plan aimed at rebuilding critical infrastructure and restoring basic services in areas heavily damaged by recent conflict.

The funding, approved by the Bank’s Board of Executive Directors on Monday, marks the initial phase of the Lebanon Emergency Assistance Project (LEAP), a scalable $1 billion recovery and reconstruction framework designed to address the extensive damage caused between October 8, 2023, and December 20, 2024.

The Bank’s Rapid Damage and Needs Assessment (RDNA) estimates direct damages across 10 key sectors at $7.2 billion, with total reconstruction and recovery needs reaching $11 billion. According to the assessment, infrastructure vital to economic activity and public welfare, such as transport, energy, water, healthcare, education, and municipal services, suffered damages amounting to $1.1 billion.

"Given Lebanon’s large reconstruction needs, the LEAP is structured as a US$1 billion scalable framework with an initial US$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, the World Bank’s Middle East Director.

The LEAP initiative is designed to deliver immediate impact while laying the foundation for longer-term recovery. The World Bank said the project would “support immediate response activities required to accelerate recovery and create the conditions that favor a return to normality,” including the environmentally sound and strategically planned management of rubble. The rubble removal process is expected to maximize recycling and reuse in an effort to promote sustainable reconstruction practices.

The financing will also enable the rapid repair of essential services, including water, power, roads, healthcare, education, and municipal services. In addition, the project will fund initial planning, design, and environmental and social assessments for the eventual reconstruction of severely damaged public infrastructure.

LEAP will rely on a data-driven, area-based prioritization methodology, endorsed by the Council of Ministers, that integrates investments to restore public services and stimulate economic activity in conflict-affected regions. The approach is informed by lessons learned from post-conflict recovery efforts worldwide.

To ensure swift implementation and operational readiness, Lebanon has launched key reform measures within the project’s executing agency, the Council for Development and Reconstruction (CDR). These include the appointment of a fully functional Board of Directors and reforms to streamline decision-making processes in accordance with international standards for emergency operations.

“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,” the World Bank noted.

LEAP will be implemented under the strategic direction of the Prime Minister’s Office, with coordination across ministries overseen by the Council of Ministers. The Ministry of Public Works and Transport will lead overall project execution, while the Ministry of Environment will supervise environmental and social safeguards, especially in rubble management.

In a further measure to strengthen oversight, the World Bank will provide implementation support through the recruitment of an international lender’s engineering firm to conduct comprehensive compliance monitoring across the project. The firm will oversee technical, environmental, fiduciary, and social aspects, including anti-money laundering (AML) and counter-terrorism financing (CFT) compliance.

This additional layer of oversight is intended to “ensure LEAP is executed with the highest standards of compliance, integrity and effectiveness,” the Bank said. The framework is expected to serve as a credible and transparent platform for donors and development partners looking to align support for Lebanon’s recovery with broader reforms.