World Bank approves $70 million grant to help Lebanon reconstruction
The money will go into a trust fund that will be used to scale up existing projects and advance projects already being prepared.
By ReutersThe World Bank said on Wednesday it had approved a grant of $70 million to support the Lebanese government's reconstruction efforts following the 34-day war between Israel and Hezbollah guerrillas.
"The impact of the hostilities on the Lebanese economy has been severe and deserves the attention and support of the international community," World Bank Managing Director Juan Jose Daboub said in a statement.
"Since the cessation of hostilities, the Bank has been looking at ways in which it can support the government of Lebanon without adding to its public debt burden."
Even before the war, Lebanon was struggling to rein in a public debt of around $38 billion, whose servicing weighs heavily on public finances.
Though the World Bank grant is dwarfed by some $900 million in aid Lebanon secured at an international conference in Stockholm earlier this month, it is rare for the international body to channel surplus funds to middle income countries. It usually gives out loans; after the tsunami in 2004, Indonesia received just $25 million in grants from the World Bank.
The World Bank money will go into a trust fund that will be used to scale up existing projects and advance projects already being prepared, especially in the water and municipal sectors, it said.
Part of the grant will also go to the private sector arm of the World Bank, the International Finance Corporation (IFC), which is preparing a programme to rehabilitate Lebanon's private sector, it added.
The World Bank has already begun, at the request of the government, to prepare an assessment of the economic and social impact of the war. The document will be used to prepare for an international debt aid conference that Lebanon hopes to host before the end of the year.
Lebanon had planned that conference long before the war, hoping for help in restructuring its debt.
Apart from the Stockholm donations Lebanon received hundreds of millions in aid from oil-rich Arab countries.
The World Bank's Post-Conflict Fund has also allocated a e1 million grant to help the Lebanese government establish a transparent and accountable system for tracing reconstruction assistance.
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$70M for Lebs and $38M for tsunami victims? Reason? Israel wasn't responsible for the tsunami. As long as Israel is involved, you can expect big bucks. But no Israel - then you get nothing. Cambodia, Rwanda, Congo and now Sudan. No Israeli involvement so...basically get lost. But the palestinians - ..where do I sign the blank check?.. is the reaction of many Westerners falling over themselves to reward palestinian terrorism. Now the Lebs - after starting the war of course - are the latest to get money thrown at them. Seems like a good strategy to get Israel to attack you and wait for the Euro/US money to start flowing in. Oh, and as far as Israel's problems? You know how rich these Jews are. Why should they get any of our money regardless of the circumstances? But being generous, we agreed that Israel can use the outhouse 'round back in the alley but only if they clean it up afterwards. Otherwise we'll have to charge them.
you can't see how ridiculous you are
Israel started this "war" (aka unwarranted attack on the people and country of Lebanon) and is solely responsible for the outcome. Even Hb's actions with the soldiers did not start a "war" (see above for real name). Israel chose to use it as an excuse to bomb the daylights out of Lebanon, an operation for which it has been preparing for years and for it's own reasons (as well as the US"s agenda)
after all the germans are still paying 70 years later...
Ridiculas How can the world bank grant only lebenon a grant when they started the war Even after the facts are proven at least give Israel the same grant or does the world bank only take orders from its arab clients and are afraid of loosing funds from the oil money.Be fair if it is at all possible to a world organisation Stop wasteing money that belongs to everybody equally