The cost of reconstruction following the destruction in the Gaza Strip has been calculated at $71.4 billion according to a joint report by the United Nations, World Bank and European Union. The report stressed that $26.3 billion of this total must be urgently financed in the first 18 months for the repair of basic services and infrastructure.
The total financial picture includes $35.2 billion in direct physical damage and $22.7 billion in economic and social losses from the halt in production. The greatest repair need is in the housing sector at $16.2 billion. More than 371,000 homes have been completely or partially destroyed, which amounts to over 81 percent of all buildings in Gaza.
For the health sector, $8.2 billion is needed because more than half of the hospitals are unusable. The loss in trade and industry stands at $8.8 billion, while the repair of transportation infrastructure amounts to $4.4 billion.
The situation in service infrastructure is even more dire. 90 percent of schools and universities, 90 percent of the water network and treatment plants, and 85 percent of the electricity grid have become unusable. This indicates that recovery will only be possible by rebuilding all living infrastructure from scratch.
Naci Sarhan, a Gaza reconstruction expert and former Undersecretary of the Ministry of Public Works and Housing, speaking to Al Jazeera, pointed out that the current cost is about 7 times greater than the total reconstruction spending after all the wars Israel has waged in the last two decades. Sarhan said, 'More than 80 percent of the elements of life in Gaza have been destroyed.'
Sarhan argued that Israel is pursuing a policy of 'mass destruction and creating an unlivable environment to force the population to migrate.' He stated that international and regional efforts are needed for financing, and that the historical aid roles of the Gulf Cooperation Council countries are of key importance.
Addressing the legal dimension, Sarhan said that as the occupying power, Israel is obligated to pay the bill for this destruction, but because there are no binding mechanisms in international law, Tel Aviv cannot be forced to shoulder this responsibility. He stressed that in this case the burden falls on donor countries and the Peace Council, and that political pledges must be turned into actual funds as soon as possible.
Sarhan added that the biggest obstacle to implementation is insufficient funding and the failure to open border crossings for the entry of construction materials and heavy equipment, and that a strict management and oversight structure is essential for the efficient use of resources.
