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The World Bank has approved over USD 1 billion in aid for Iraq, Syria, and Lebanon, focusing on infrastructure, trade, and public service restoration. Iraq received USD 930 million for a railway modernisation project linking Umm Qasr Port to Mosul, aiming to enhance logistics and diversify its oil-dependent economy. Syria secured USD 146 million to restore war-damaged power infrastructure, supplementing a recent 5,000 MW energy deal with foreign firms. Lebanon was granted USD 250 million to repair essential public services like water, healthcare, and transport after recent conflict. The World Bank stressed these are long-term development investments, not just crisis responses, to foster regional stability and recovery.
This week, the World Bank extended financial assistance exceeding USD 1 billion across three conflict-affected nations in the Middle East Iraq, Syria, and Lebanon with a strong emphasis on infrastructure rehabilitation, trade facilitation, and public service restoration. Advertisement
The Republic of Iraq emerged as the primary recipient, with USD 930 million sanctioned to support a comprehensive railway extension and modernisation programme. The Iraq Railways Extension and Modernisation Project is designed to strengthen logistics between Umm Qasr Port, Iraq's key maritime gateway on the Persian Gulf, and Mosul, a historically significant city in the north. The objective is to enhance freight efficiency, reduce travel times, stimulate domestic trade routes, and broaden economic participation in non-oil sectors.
Jean-Christophe Carret, Regional Director of the World Bank's Middle East division, stated that Iraq is now entering a new phase, transitioning from post-war reconstruction to national development. He emphasized that investing in trade infrastructure and connectivity is not only timely but essential to creating jobs, boosting economic growth, and steering the country away from a single-sector economy dominated by oil.
In neighbouring Syria, the World Bank has approved a USD 146 million grant to restore reliable and affordable electricity through its Electricity Emergency Project. The initiative will focus on repairing key transmission lines and transformer substations across war-ravaged zones. Access to power remains one of Syria's most critical infrastructure gaps, with large swathes of the country still struggling to access consistent electricity.
The funding comes shortly after Syria inked a significant deal with a consortium comprising Qatari, Turkish, and US-based companies to build a 5,000-megawatt energy project a move seen as a key step in reviving the national grid, which was heavily damaged over more than a decade of war.
Lebanon, still grappling with the aftermath of a 14-month conflict between Israel and Hezbollah, has been granted USD 250 million by the World Bank to undertake urgent reconstruction work. The assistance will primarily go toward repairing critical public infrastructure and restoring lifeline services such as water, sanitation, healthcare, and transportation networks, many of which were left in disrepair or destroyed during the conflict.
This is not the first time the World Bank has intervened in Lebanon's rebuilding efforts. Over the past decade, it has supported multiple programmes aimed at economic stabilization, refugee response, and social protection, particularly in the wake of the 2019 financial crisis and the 2020 Beirut port explosion.
The World Bank has clarified that these new financial commitments are not merely crisis responses but part of a broader strategy to support sustainable development and long-term recovery in the region.
Source: PTI
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