Gaza: Reconstruction costs estimated at between $30 billion and $40 billion, according to the UN

The United Nations on Thursday estimated between 30 and 40 billion dollars the cost of rebuilding the Gaza Strip, devastated by almost seven months of devastating war between Israel and the Palestinian Hamas, due to unprecedented destruction.

“United Nations Development Program (UNDP) estimates for rebuilding everything in the Gaza Strip exceed $30 billion, maybe up to $40 billion,” Abdallah al-Dardari, director of the UNDP’s regional office for Arab states, said during a press conference in Amman. .

“The scale of destruction is enormous and unprecedented (…) This is a mission that the international community has not faced since the Second World War,” said Mr. Dardari, also the UN Under-Secretary.

He stated that “discussions were being held on financing (reconstruction) with Arab countries,” reporting “extremely positive signals,” without giving further details.

He added that if the reconstruction of Gaza were carried out through the traditional process, “it could take decades, and the Palestinian people do not have the luxury of waiting” that long.

“That is why it is important that we act quickly to place people in decent housing and restore their normal economic, social, health and educational lives. This is our top priority and must be achieved within the first three years after the cessation of hostilities. »

In addition, he estimated the total rubble accumulated after the bombings and explosions at “37 million tons”. “We are talking about a colossal number, and that number is increasing every day. The latest data suggests that it is already approaching 40 million tons.”

Fall of GDP

The UN official also specified that “72% of all residential buildings were completely or partially destroyed.”

Also, “human development in Gaza, in all its aspects, including health, education, economy and infrastructure, has declined in 40 years. Forty years of effort and investment have gone up in smoke.”

“Reconstruction must be carefully planned, efficient and extremely flexible, because we do not know how the war will end” and what kind of government will be established in the Gaza Strip, he said.

Mr. Dardari emphasized the importance of preparing in advance to be able to act as soon as hostilities end. “We must be prepared to provide decent temporary accommodation, clear the rubble and deal with the thousands of bodies lying under the rubble.”

The UNDP estimated in a report released Thursday that the war is expected to cause a loss of 26.9 percent of GDP for the entire Palestinian territories in 2024, compared to initial projections by the Palestinian Bureau of Statistics.

Before the war began on October 7, Palestinian growth was forecast at 3.5% in 2023, but ended the year in recession at 5.5% – a difference almost entirely due to the collapse of Gaza’s economy, which shrank by more than 90% compared to the last three months of the year.

The occupied West Bank was also affected, whose economy fell by 18.8% in the last quarter of 2023 compared to the same period a year earlier.

“The sprawling war in Gaza will bring an economic and social cost to future generations that will hinder post-war recovery and development across the occupied Palestinian territories,” the report added.

Life expectancy in the Palestinian territories has dropped by four years and could even drop by seven years if the war continues for another three months.