At the end of 2025, the Lebanese parliament approved a $250 million World Bank loan for the Lebanon Emergency Assistance Project (LEAP) to support urgent reconstruction of infrastructure damaged by the Israeli war, restore essential services, and sustainably manage debris. LEAP, part of a broader $1 billion framework, focuses on emergency response, rapid recovery of vital services, sustainable infrastructure reconstruction, and project management.

The initial loan covers only 25% of the framework, addressing short-term needs while leaving most reconstruction unfunded. Funding prioritizes densely populated areas, excluding southern and border regions, and external financing remains insufficient for rebuilding severely damaged buildings, delaying the return of over 64,000 displaced people.

Lebanon’s broader recovery strategy relies almost entirely on foreign loans and grants, with minimal internal funding, leaving reconstruction dependent on donor conditions. The LEAP loan, while important, represents a partial, short-term step amid ongoing delays in comprehensive reconstruction.

Read the full Policy Watch in Arabic.