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Gaza reconstruction plan: $53 billion needed, Palestinian Authority to govern

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According to a plan devised by Arab leaders, the governance of Gaza will be handed over to the Palestinian Authority.

The “Arab plan,” prepared by Egypt for the reconstruction of Gaza and adopted at the Arab League’s Cairo Summit, envisages the establishment of a temporary administrative committee for a period of six months, followed by the transfer of Gaza’s governance to the Palestinian Authority. The plan suggests that, without explicitly naming Hamas, the group would lay down its arms if a credible political process is initiated.

Egypt has prepared a 91-page plan titled “Early Recovery, Reconstruction, and Development of Gaza.”

The report on this plan states that the total material damage resulting from Israel’s war of destruction on Gaza amounts to $29.9 billion, with the housing sector being the most affected, costing $15.8 billion and constituting 53% of the total damage.

According to the report, an estimated 30,000 residential buildings have been damaged, of which 272,000 apartments have been completely destroyed, and 58,500 apartments have been partially damaged.

The report indicates that satellite imagery reveals that 1,190 kilometers of Gaza Strip’s roads have been destroyed, with an additional 415 kilometers severely damaged and 1,440 kilometers significantly damaged.

In the health sector, the damage is estimated at $1.3 billion, with losses amounting to $6.3 billion. The report notes that 50% of the hospitals in the Gaza Strip (18 hospitals) are completely out of service, while 17 hospitals are partially operational, failing to meet the increasing health needs.

In the education sector, the damage is estimated at $874 million, with losses reaching $3.2 billion. The report highlights that 88% of schools have been destroyed, with the remainder converted into temporary shelters for families fleeing the war. Additionally, 51 university buildings have been destroyed.

In the trade and industry sector, the damage amounts to $5.9 billion, with losses totaling $2.2 billion. The report also estimates that the damage in the transportation sector is $2.5 billion, with losses of $377 million.

The damage in the water and sewage sector is recorded at $15 billion, with losses reaching $64 million. In the electricity sector, losses are estimated to be $450 million.

Recovery and reconstruction needs

Considering these damages, the plan estimates the total need for Gaza’s reconstruction at $53 billion, with $3 billion allocated for “early recovery” to be used within six months.

The report states that the housing sector accounts for the largest share of recovery needs, with a total value of $15.2 billion. This is followed by the health, trade, and industry sectors, each requiring $6.9 billion for recovery, roads at $2.45 billion, and the electricity sector at $1.5 billion.

The education sector needs $3.8 billion for recovery, while the agriculture and social protection sectors each require $4.2 billion. The transportation sector needs $2.9 billion, and the water and sanitation sector needs $2.7 billion.

The report indicates a need for $1.25 billion for a four-stage process that includes debris removal, unexploded ordnance disposal, recycling, and transformation.

Implementation stages of the plan

The report emphasizes the need to prepare a roadmap and an urgent development plan for the reconstruction of the Gaza Strip in three phases over a five-year period until 2030, accommodating approximately 3 million people.

The first phase, termed the “early recovery phase,” with an estimated timeframe of six months and a cost of $3 billion, includes tasks such as removing debris in some areas and repairing them for temporary housing, repairing 60,000 partially damaged houses to accommodate 360,000 people, and constructing 200,000 temporary housing units to accommodate 1.2 million people.

The second phase, with a two-year timeframe and a cost of $20 billion, envisages the construction of 200,000 new housing units, infrastructure development, completion of debris removal and sorting, restoration of 60,000 houses to accommodate 1.6 million people, reclamation of 20,000 acres of land, and the establishment of service facilities.

The third phase, termed the “second phase of reconstruction,” is expected to be completed in 2.5 years at a cost of $30 billion. This phase includes the construction of an additional 200,000 housing units to accommodate 1.2 million people and infrastructure development.

The report states that this phase envisages the establishment of the first stage of an industrial zone on a 600-acre area, as well as the construction of a fishing port, a commercial port, and Gaza Airport. It also indicates the provision of 500,000 jobs for Palestinians in Gaza in various sectors.

Political context of the plan

The plan states that while preserving the internationally accepted two-state solution horizon, reconstruction is based on the rights and dignity of Palestinians.

Emphasizing the rejection of any attempts to displace Palestinians from Gaza, the plan points out that it is illogical to ignore the desire and right of the Palestinian people, who are firmly attached to their land, to remain on this land in the face of this catastrophic crisis that the Gaza Strip and its people are experiencing.

Noting that the Gaza Strip is an integral part of the Palestinian territories, the plan warns that attempts to geographically separate Gaza from the West Bank will lead to further instability.

The plan warns that ignoring the suffering of Palestinians in Gaza could lead to an escalation of conflicts in the region and calls on the international community to support reconstruction efforts primarily for humanitarian reasons.

Transitional governance during Gaza’s reconstruction

Regarding the governance of Gaza during the reconstruction process, the plan indicates that efforts are underway to establish a temporary administrative committee composed of independent technocrats under the umbrella of the Palestinian government in the Gaza Strip for a period of six months, with the aim of paving the way for the full return of the Palestinian National Authority to the Gaza Strip.

The plan emphasizes that what is currently expected from the international community is to support and encourage these efforts to ensure the success of the administrative committee and its ability to manage the subsequent phase.

Regarding the mission to ensure security in Gaza, the plan notes that Egypt and Jordan are working to train Palestinian police to be sent to the Gaza Strip to enable the Palestinian Authority to return to the Gaza Strip and fulfill its administrative duties.

Calling for these efforts to be supported by political and financial support and the efforts of international and regional partners, the plan suggests that the United Nations Security Council consider deploying an international peacekeeping force in the Palestinian territories, including Gaza and the West Bank, within a clear timetable for the establishment of a Palestinian state.

The plan indicates that the problem of numerous Palestinian parties carrying weapons in Gaza can be eliminated forever “if the reasons are removed through a credible political process with a clear horizon and ensuring the return of rights to their owners.”

Egypt’s plan emphasizes that all previous efforts should be directed towards implementing the two-state solution and working to achieve a medium-term ceasefire between Israel and the Palestinian Authority, encompassing the West Bank and Gaza, as well as halting all unilateral initiatives such as settlement construction, house demolitions, military interventions, and protecting the legal and historical status of holy sites.

The plan notes that if there is political will, the reconstruction of Gaza as proposed is possible.

Middle East

UNDP estimates $1.38 billion in building damage across southern Lebanon

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The United Nations Development Programme (UNDP) and Lebanon’s National Council for Scientific Research have released a rapid assessment report on building damage in southern Lebanon.

According to Lebanon’s Al-Akhbar newspaper, the study relied on satellite imagery and geospatial artificial intelligence (GeoAI) technologies to assess externally visible damage to buildings along the southern border between October 23, 2025, and April 29, 2026.

The report found that a total of 11,095 buildings had been completely destroyed in the areas surveyed. Based on an assumed average apartment size of 150 square metres, these destroyed structures are estimated to correspond theoretically to 17,891 housing units.

The volume of debris generated in the region is estimated at 3,107,756 cubic metres.

In addition to the buildings that were completely destroyed, the assessment identified partial damage to 2,242 buildings and minor damage to 9,311 others.

At the housing-unit level, the report estimates that alongside the approximately 17,891 units that were completely destroyed, around 5,219 homes sustained partial damage and 18,282 suffered minor damage.

The report stressed that these housing figures are not based on direct field surveys but on mathematical modelling using average floor-space assumptions and therefore constitute theoretical estimates.

Preliminary cost of building damage estimated at $1.38 billion

The report calculated reconstruction costs using a standard benchmark value of $450 per square metre. On that basis, the total preliminary cost of building damage was estimated at $1.384 billion.

Geographically, Nabatieh Governorate accounted for the largest share of the damage, estimated at $1.053 billion, while losses in South Governorate were assessed at $331 million.

At the district level, preliminary costs were estimated at $688 million in Bint Jbeil, $333 million in Marjayoun, $315 million in Tyre, $32 million in Nabatieh district and $16 million in Sidon.

The report emphasised that these figures cover only external physical damage to buildings and do not represent the final cost of reconstruction or the total economic losses caused by the war.

In Bint Jbeil district, the highest levels of destruction were recorded in Aitaroun, where 1,658 buildings were destroyed, followed by Bint Jbeil city with 1,076, Ayta al-Shaab with 539, Beit Lif with 371, Yaroun with 242 and Ainata with 227.

In Marjayoun district, 969 destroyed buildings were recorded in Mais al-Jabal, 824 in Taybeh, 285 in Houla, 199 in Markaba, 184 in Blida and 174 in Deir Siryan.

In Nabatieh district, 71 buildings were destroyed in Yahmar al-Shaqif, 69 in Zoutar al-Sharqiya and 37 in Kfar Sir. In Tyre district, 370 buildings were completely destroyed in Burj al-Shamali, 216 in Naqoura, 162 in Abbassiyeh, 80 in Tyre city and 65 in al-Mansouri. In Sidon district, destruction was concentrated mainly in Zirariyeh, where 65 buildings were destroyed, and Arzi, where 62 buildings were levelled.

The report also outlined significant limitations that prevent the findings from being treated as a definitive final assessment.

The study did not cover entire administrative districts but was limited to areas where clear satellite imagery was available.

As a result, the area south of the Litani River constituted the main focus, while only limited data from areas north of the river were included. Some municipalities were fully surveyed, while only selected sections of others could be examined.

For example, all cadastral zones in Bint Jbeil district were surveyed. In Tyre district, 74 of 75 cadastral areas were fully covered, while one was only partially included.

In Marjayoun, 17 of 33 areas were fully surveyed and 21 partially covered. In Nabatieh, only four of 52 areas were fully analysed, while 15 were partially examined. In Sidon, none of the 77 areas underwent a complete survey, with only five areas partially included in the assessment.

The report listed several additional limitations:

Critical infrastructure damage, including roads, bridges, electricity networks, water systems and telecommunications facilities, was not assessed.

Damage to underground shelters, basements and non-visible interior sections of buildings could not be detected.

No clear distinction could be made between residential, commercial and industrial structures.

Buildings with minor damage were excluded from debris-volume and cost calculations.

Structural density, shadows and narrow streets introduced potential margins of error in satellite analysis.

No field visits or on-site inspections were conducted to verify the findings. The assessment was carried out entirely through desk-based analysis of satellite imagery.

Given the scale of destruction and confidence in the methodology employed, no on-site verification procedures were undertaken in cooperation with the Lebanese Armed Forces or the United Nations Department of Safety and Security (UNDSS).

UNDP said the findings should be regarded as preliminary planning data and that the scope of the assessment would be expanded as additional satellite imagery and field information become available.

Officials noted that once excluded categories and infrastructure losses are taken into account, the true cost of the destruction in southern Lebanon is likely to be significantly higher than the estimates contained in the report.

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Middle East

Iran makes Lebanon ceasefire prerequisite for final agreement with US

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Assessments that efforts to restrain Israel in Lebanon are being shaped less in Beirut or Tel Aviv than in closed-door talks between Iranian and American negotiators resurfaced ahead of negotiations in the Swiss town of Bürgenstock.

Unlike the current approach adopted by the Lebanese government, Iran continues to pursue a strategy of leveraging its influence on the ground to secure diplomatic gains.

The Lebanese government, meanwhile, remains committed to a separate negotiating track that critics say facilitates concessions to Israel at the negotiating table in Washington that could not be achieved on the battlefield.

US Vice President JD Vance, who arrived in Switzerland to participate in the latest round of talks, confirmed that efforts to make the ceasefire in Lebanon permanent would be among the negotiations’ top priorities.

According to CNN, citing a diplomatic source familiar with the matter, the US and Iranian delegations agreed to convene an emergency session on the situation in Lebanon as the first item of discussion, placing the issue at the top of the agenda.

US says it faces difficulties over Israeli withdrawal

According to diplomatic sources cited by Al-Akhbar newspaper, US officials informed the Iranian side that Washington had made intensive efforts to persuade the Israeli government to complete a full withdrawal from Lebanon but had encountered significant difficulties in the process.

US officials requested Iranian support in facilitating Hezbollah’s withdrawal from southern Lebanon as part of efforts to enable an Israeli pullout.

The Iranian delegation responded that Hezbollah was an internal Lebanese matter. While indicating that Tehran did not oppose an agreement by the Lebanese authorities on a timetable providing for a rapid Israeli withdrawal, the delegation outlined what it viewed as its own area of responsibility.

Iranian representatives said both Tehran and Washington had committed to implementing measures aimed at ending the war across the region, including in Lebanon, and argued that the United States should exert pressure on Israel not only to uphold a ceasefire but also to withdraw quickly.

Iran reiterates Lebanon condition for final agreement

An Iranian official also told CNN that ending the conflict in Lebanon was the most important item on the Iranian delegation’s agenda.

During the talks, Vice President Vance said Washington would continue working toward peace between Lebanon and Israel and expressed hope that the temporary ceasefire could be transformed into a permanent agreement capable of delivering long-term stability.

Speaking before the session, Iranian Foreign Ministry spokesman Esmail Baghaei said Tehran would not begin negotiations on a final agreement with Washington unless the war in Lebanon was halted, as stipulated in the US-Iran memorandum of understanding.

In a post on X, Baghaei wrote: “It is not possible to move to the negotiation stage for a final agreement unless these provisions are implemented, foremost among them the first clause, which calls for ending the war on all fronts, including Lebanon.”

Military and diplomatic developments ahead of the Bürgenstock talks threatened to undermine the understanding reached between the parties. Following Israeli attacks in Lebanon and what Iran described as an escalation of military tensions in violation of the US-Iran agreement, Tehran announced that it had closed the Strait of Hormuz to traffic.

In a statement, Iran’s Khatam al-Anbiya Headquarters said the closure of the strait was only the first step in a series of measures planned by Tehran. Iran’s Foreign Ministry subsequently announced the suspension of the Geneva negotiations with the United States.

Following those developments, reports indicated that Washington intervened and increased pressure on Israel, leading Israeli military commanders to issue definitive orders for a complete halt to military operations in southern Lebanon for the second time within 24 hours.

Israeli media reports said the decision was not taken solely on Tel Aviv’s own initiative and that military operations were curtailed as a result of intense US pressure following Iran’s move in the Strait of Hormuz.

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US lifts naval blockade of Iran after ceasefire memorandum signed

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The United States has lifted its naval blockade of Iran on the orders of President Donald Trump, ending restrictions on vessels entering and leaving Iranian ports.

Announcing the development, the US Central Command (CENTCOM) said the US military was no longer blocking maritime traffic to Iranian ports and had halted all operations related to enforcing the naval blockade.

The statement added that US warships would remain in the region to monitor compliance with the terms of the agreement.

The decision to lift the blockade follows the memorandum of understanding signed by the United States and Iran on June 18, aimed at ending the war and reopening the Strait of Hormuz to maritime traffic.

After signing the document in France, where he was attending the G7 summit, Trump sent the agreement to Iranian President Masoud Pezeshkian for approval.

In a statement, Iran’s Foreign Ministry said a formal signing ceremony between the two delegations, previously scheduled to take place in Geneva on June 19, would no longer be held.

Negotiations to continue in Switzerland

According to Axios, citing sources familiar with the matter, the signing process for the memorandum of understanding was accelerated in order to reopen the Strait of Hormuz to shipping as quickly as possible.

A planned meeting between US and Iranian representatives in Switzerland has not been cancelled. The talks are expected to focus on launching negotiations over Iran’s nuclear programme, with US Vice President James David Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf set to take part.

According to CNN, the 14-point memorandum calls for an immediate ceasefire on all fronts, the lifting of the naval blockade, the resumption of maritime traffic through the Strait of Hormuz, the removal of oil sanctions on Iran and the withdrawal of US troops from areas surrounding Iran.

The agreement also includes the allocation of $300 billion for Iran’s economic reconstruction, the release of $24 billion in frozen Iranian assets and a 60-day negotiation process aimed at reaching a final agreement on the nuclear programme.

In return, the authorities in Tehran pledged not to develop nuclear weapons.

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