Lebanon Businessnews News
 

$2.6 billion international
recovery plan for port blast
Initiative by the United Nations,

European Union, and World Bank

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The United Nations (UN), European Union (EU), and World Bank Group (WBG) have launched a $2.6 billion, 18-month reform, recovery, and reconstruction response plan to address urgent needs of the population affected by the Port Explosion.

“Based on in-depth consultations with government, civil society, and donors, the ‘Lebanon Reform, Recovery and Reconstruction Framework (3RF)’ aims to provide a common reference point and action plan on what needs to be done across various sectors over the next 18 months. The 3RF also sets out arrangements for the coordination, implementation and financing of recovery and, subject to reform progress, reconstruction priorities,” read a joint statement by the three organizations.

The 3RF includes two parallel tracks: A reform and reconstruction track, and a socio-economic recovery one.

The costs for the reform and reconstruction track are estimated at $2 billion.

The socio-economic recovery track addresses the urgent needs, estimated at $584 million, of the most vulnerable populations and small businesses affected by the explosion. Around $426 million of this amount are needed for the first year.

“Financing will build on existing sources that have been mobilized so far, including humanitarian assistance, adjusted and scaled-up assistance by bilateral donors, diaspora financing, and new forms of crowd funding,” according to the statement.

The recovery and reconstruction track will be financed in two phases.

In the short term, international grant financing will be required to kick-start recovery and support urgent needs while advancing on essential reforms in parallel. Once progress has been made on key reforms and macroeconomic stabilization, concessional loans and private finance can support reconstruction and help set Lebanon back on a path toward stability, growth, and sustainable development.

Lebanon Financing Facility (LFF) will be established to receive grant financing, support the recovery track, and prepare for reconstruction. It will provide a pooled financing mechanism as one of the instruments to channel support to selected priorities under the 3RF. LFF will focus on immediate recovery needs of poor and vulnerable households, support business recovery programs, promote inclusive ways of working with civil society, and prepare the ground for reform and reconstruction. “LFF will adopt flexible, non-governmental implementation modalities, combined with strong fiduciary monitoring and independent oversight over the use of LFF funds,” said Saroj Kumar Jha, Regional Director of the World Bank’s Middle East Department.
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Date Posted: Dec 04, 2020