Gaza not ready for rebuilding amid security and governance hurdles, UN says

Report by UN, World Bank and EU says success of reconstruction efforts depends on reforms

Destruction across the city of Jabalia in the Gaza Strip. The UN, World Bank and EU say it will cost $53 billion to rebuild Gaza. AP

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Conditions for rebuilding Gaza are not in place with the lack of security, governance and restrictions on movement in the enclave, the UN, World Bank and EU have warned in a new assessment.

The Interim Rapid Damage and Needs Assessment released on Tuesday said that $53.2 billion is needed for recovery and reconstruction over the next 10 years.

Gaza faces major rebuilding work, including clearing unexploded ordnance and millions of tonnes of rubble, following the Israel-Hamas war, which killed more than 48,200 people in the strip, according to local health officials, and left the enclave in ruins.

The report said “the speed, scale, and scope of recovery” will be shaped by security, governance and the movement of people and goods.

“Clear governance structures and co-ordination mechanisms are essential for managing the complexities of recovery in Gaza,” it said. “Recovery and reconstruction must go hand-in-hand with broader reforms in governance, regulations, and regimes that facilitate longer-term sustainable development.”

It also said Palestinian participation in the process would be needed to build trust among Gazans. “Palestinian ownership and leadership of recovery and reconstruction efforts is critical, particularly with a view to enhance sustainability of recovery gains.”

More than 290,000 homes have been destroyed or damaged and 95 per cent of hospitals were non-functional, the report said. The Gazan economy has contracted by 83 per cent in the worst downturn for at least three decades, while unemployment in Gaza and the occupied West Bank combined reached a record high of 51 per cent in October.

Workers operate machinery flying Egyptian flags in Rafah in southern Gaza on Tuesday. Reuters

“The loss of life, widespread destruction, and the speed of damage to infrastructure have reached levels that rank among the worst in both the Middle East and North Africa region’s history,” the assessment said. “The consequences of this are expected to exert a prolonged and substantial burden on economic activities for several years ahead.”

More than half the total estimated cost of rebuilding, or $29.9 billion, would need to be spent on repairing damaged buildings and other infrastructure, including housing, which requires around $15.2 billion, the report said.

Another $19.1 billion would be required to make up for social and economic losses, including health, education, commerce and industry sectors devastated by the war.

A ceasefire deal between Israel and Hamas took effect in mid-January and continues to hold despite a series of setbacks and accusations of violations that have threatened to derail it.

US President Donald Trump has proposed that the US take control of Gaza while it is rebuilt and that its two million residents are removed to make way for reconstruction. The idea has been widely rejected by the Arab world and Palestinians, who say it is tantamount to ethnic cleansing. Egypt is working on a counter-plan to rebuild without displacing people.

The ceasefire's current phase runs until the beginning of March, and there are fears that fighting will resume. Talks on the second phase are under way. The 15-month war began with a Hamas-led attack on southern Israel on October 7, 2023 that killed about 1,200 people.