Washington, Feb 20 (NationPress) World Bank President Ajay Banga has revealed the establishment of a specialized Gaza Reconstruction and Development Fund aimed at managing global contributions for the restoration of the war-torn region. He stated that the World Bank would function as a “limited trustee” under the guidance of the newly established Board of Peace.

During the inaugural session of the Board of Peace in Washington on Thursday, Banga announced that the World Bank would begin creating the Gaza Reconstruction and Development Fund following the passage of a resolution by the UN Security Council.

“The fund is established within the institution. The World Bank acts as a limited trustee,” he elaborated. “We oversee the contributions from donors and, under the Board of Peace's direction, allocate funds for reconstruction and development initiatives in Gaza.”

Banga indicated that the fund is “ready to accept donations” pledged by contributing nations.

He underscored that financial transparency would be paramount in this process. “As donors, you have the right to know that the funds are utilized in a transparent manner,” he emphasized, noting that robust financial, legal, and oversight standards would be implemented.

To enhance accountability, the World Bank has designated a financial controller on a secondment basis to the Board of Peace to help establish high standards throughout this initiative.

In addition to fund management, Banga highlighted three broader roles that the World Bank Group could undertake to support Gaza’s recovery.

“Firstly, we can leverage public finance,” he stated, pointing out that the Bank’s AAA credit rating enables it to access private bond markets to generate the necessary resources.

“Secondly, we can mitigate risks associated with private investment,” he added, indicating that the Bank could offer guarantees or financial tools to attract private funding.

“Lastly, we possess local expertise and experience in carrying out similar projects in other regions,” he noted.

Banga reiterated that the World Bank aims to be an active contributor rather than a passive observer. “We aspire to be directly involved in providing the people of Gaza and the surrounding region with the opportunities they deserve,” he stated.

The reconstruction strategy presented during the meeting includes extensive rebuilding of housing, infrastructure, and public services, alongside the establishment of a new Palestinian administrative body in Gaza. Multiple nations have promised billions in assistance, with the United States pledging $10 billion.

The World Bank’s engagement signifies a substantial multilateral financial framework for the post-war recovery of Gaza, representing one of the most organized international funding approaches proposed for the area in recent history.