Gaza Reconstruction Fund Empty Despite Billions in Pledges

A World Bank fund linked to US President Donald Trump’s Gaza reconstruction initiative has yet to receive any money despite pledges totaling billions of dollars, according to the Financial Times and Euronews, which cited AFP.

The fund is connected to Trump’s Board of Peace, which was set up to coordinate Gaza’s post-war reconstruction after the ceasefire between Israel and Hamas. It is administered by the World Bank and backed by the United Nations.

Pledges linked to the initiative total $17bn, but some donors have instead sent or earmarked money outside the World Bank mechanism, including through a JPMorgan account that is not subject to the same transparency requirements.

Morocco has contributed about $20m to support the office of Nikolai Mladenov and a Palestinian technocratic committee tasked with Gaza administration. The United Arab Emirates has earmarked $100m for training a new security force, although the funds have not yet been released.

The US State Department has pledged $1.2bn for projects linked to the initiative, but has not transferred any money so far. Washington also plans to provide another $50m directly to the council, although Congress has yet to authorize the funds pending oversight mechanisms.

A source familiar with the board’s operations told AFP that no money had been deposited in the World Bank fund because it was designed for the reconstruction and development phase, which has not yet been reached.

The board has begun preparing tenders for security and reconstruction work, but has not awarded contracts. A spokesperson said it was not yet operating directly in Gaza because conditions set out in Trump’s proposal, including the disarmament of Hamas, had not been met.

An EU-UN assessment published in April estimated that more than $71bn would be needed over the next decade.

(jpost, ft, en, bak)