The World Bank has approved $350 million in new financing to help Lebanon meet the needs of poor and vulnerable people during its economic recovery.
The financing is also to be used to improve services through the "digital transformation” of the public sector, the lender said.
“Lebanon is witnessing a fragile recovery. The World Bank’s new financing package is designed to deliver broad, high-impact benefits across society by advancing social protection, economic inclusion, and digital transformation,” said Jean-Christophe Carret, World Bank division director, Middle East Department.
“These efforts will strengthen Lebanon’s economic recovery, job creation, and the country’s ability to deliver high-impact public services to all its citizens.”
The money will go towards two projects: a social safety net enhancement and system building project' at $200 million, and a digital acceleration project at $150 million, the World Bank said.
Lebanon's government faces several challenges, including a long-term economic downturn; rebuilding after a war between Israel and Hezbollah in 2024, estimated to cost at least $14 billion; and introducing economic reforms to unlock billions of dollars worth of international assistance.
The many crises in Lebanon have “severely exacerbated pre-existing economic and social challenges, pushing people into poverty and exposing households to severe food insecurity, poor nutrition, and limited access to healthcare,” the World Bank said.
“The crises also led to an acute deterioration in public service delivery. Despite recent progress in the digitalisation of certain public services, institutional gaps and insufficient implementation capacity have constrained the digital transformation agenda.”
The World Bank announcement came as Qatar on Monday announced more than $430 million in assistance for Lebanon, with the bulk of the funds earmarked to help it address its chronic power shortage.
The total funding of $434.2 million will be provided through the Qatar Development Fund, which said $400 million would go towards stabilising the energy sector.
