Mountainous challenges confront Lebanon in rebuilding after war

Recovery effort faces delays in funding and concerns about environmental hazards and lack of transparency in awarding contracts

The Haret Hreik neighbourhood in southern Beirut after an Israeli air strike on September 27 that killed Hezbollah leader Hassan Nasrallah. AFP

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Lebanon faces a difficult path to recovery from the latest war between Hezbollah and Israel, hampered by a severe lack of financial resources, transparency, and planning for the rebuilding effort.

Israel's campaign of heavy bombardment destroyed Beirut's southern suburbs, villages and towns in the south and in the eastern Baalbek-Hermel region. More than 1.3 million people have been displaced and 166,000 workers lost their jobs.

Initial estimates by the World Bank put the losses at around $8.5 billion, more than three times higher than the cost of the last war between Israel and Hezbollah – a month-long conflict in 2006.

Lamia Moubayed Bissat, head of the Basil Fuleihan Financial and Economic Centre, a Lebanese institution focused on economic research, financial analysis and policy advice, said the final cost could be even higher.

“In the housing sector alone, the war has led to the destruction or damage of more than 100,000 homes, either fully or partially, with costs potentially reaching $3.2 billion. Economic losses are estimated at $5.1 billion, a preliminary figure that is likely to rise once more accurate surveys are conducted,” Ms Bissat added.

"Who will compensate us?" asked Abu Hassan, a shop owner in the Jamous area of Beirut's Dahieh suburb that was struck more than 10 times during the extensive Israeli bombing campaign that began in late September and ended with a US-mediated ceasefire in late November.

"My livelihood is gone and they say compensation will come later, but how are we supposed to survive now?"

More than 600 buildings in Beirut's southern suburbs were completely destroyed, and the National Council for Scientific Research recommends demolishing 30 per cent of those that suffered damage.

Despite the devastation and the loss of livelihood, Abu Hassan returned to his home in Jamous, which was undamaged, to escape the exorbitant rents charged to people who fled the bombing. "We came back to this rubble not knowing what toxic materials might be here, but we had no other choice," he said.

Deputy Prime Minister Saadeh Al Shami told The National that Lebanon would need at least $10 billion to rebuild the war-torn areas – a heavy burden for a country that has been in economic crisis since late 2019.

Mr Al Shami affirmed the World Bank would require environmental impact assessments before providing any financial aid for reconstruction, to ensure that it meets sustainability standards.

Lebanon is in discussions with the bank to establish a multi-donor trust fund to secure the financing. This aims to manage resources effectively and ensure adherence to international standards for debris removal and rebuilding, contributing to sustainable development and avoiding the environmental disasters that occurred after the 2006 war, he said.

“Environmental impact assessments will be mandatory, and we need to make sure that the debris removal is done responsibly, ensuring that any hazardous material is properly handled,” Mr Al Shami stressed.

Lebanese soldiers visit the southern village of Khiam on December 23. Reuters

Nevertheless, the government has gone ahead with awarding contracts for removing rubble and the reconstruction of some buildings, raising concerns among members of the Lebanese Engineers Syndicate who say that the process was not transparent.

“The decision to award such a significant contract to a single firm, without competition or transparency, further complicates the already tenuous trust between the Lebanese people and the authorities,” said Paul Nakouzi, head of the consulting civil engineers branch at the Engineers Syndicate.

The firm in question, Khatib & Alami, provides urban and regional planning, architectural and engineering consultancy services. With only 24 civil engineers on staff, the decision to award it the contract has been questioned, especially given the availability of more than 100 volunteer engineers from the Engineers Syndicate.

“The government has rushed into awarding contracts without proper tenders or oversight, which raises questions about political favouritism and the lack of accountability," said Paul Nakouzi, a syndicate official.

Jean Elieh, head of the Public Procurement Authority, a body tasked with ensuring proper procedure in the awarding and execution of state contracts, said the law provided for the government to “enter into agreements by mutual consent to address urgent needs when tenders are not feasible”.

Since the formal tender process takes three to four months, urgent work could be conducted through mutual consent under legal supervision to ensure transparency, Mr Elieh said.

He added that the government had sent him specific terms for rubble removal, which the authority reviewed for compliance with public procurement laws. The document, including environmental conditions set by the Ministry of Environment, was forwarded to the Council of Ministers for approval.

However, local authorities in some areas have begun clearing rubble without environmental assessments or ensuring that it is sorted to remove hazardous materials, including remnants of weapons or explosives.

In Dahieh, rubble removers are reportedly being paid just $5 per cubic metre, raising questions about the quality of the process since such a low rate gives companies little incentive to sort the debris properly.

"The lack of planning and environmental oversight is a failure of the reconstruction process," Ziad Abi Shaqer, an environmental engineer. "The debris should be treated as a resource that can be recycled, not as waste that harms the environment."