Egypt puts forward USD 53 bn, five-year Gaza reconstruction plan

During an emergency Arab League summit in Cairo, Arab leaders endorsed Egypt's ambitious USD 53 billion reconstruction plan for Gaza, a comprehensive initiative designed as a countermeasure to US President Donald Trump's controversial proposals for displacing Gaza's population. This plan, meticulously crafted over a month by Egypt and several Arab nations, aims to provide a sustainable path forward amidst the ongoing instability and a precarious ceasefire agreement.

The reconstruction plan, detailed in a 112-page document, outlines a five-year strategy to rebuild Gaza, encompassing the construction of approximately 400,000 housing units, an airport, a commercial port, beach hotels, and a technology hub. The plan also emphasizes the creation of urban areas powered by renewable energy, the restoration of agricultural lands, and the establishment of industrial zones. The reconstruction process is structured in two phases: a USD 20 billion first phase spanning two years, followed by a USD 30 billion second phase completed in two and a half years. Preceding these phases is a USD 3 billion "recovery phase," focused on clearing rubble, removing unexploded ordnance, providing temporary housing, and restoring partially damaged residential buildings.

A crucial aspect of the plan involves the establishment of a non-factional Palestinian committee to oversee Gaza during a transitional six-month period. Egypt and Jordan will play a pivotal role in training security forces, and the possibility of a UN-backed international peacekeeping mission is under consideration. President Abdel Fattah El Sisi emphasized the formation of this administrative committee, composed of independent Palestinian professionals, to manage Gaza's affairs and pave the way for the return of Palestinian Authority control. The plan ensures that Gazans will remain on their land throughout the reconstruction process, with temporary housing provided.

The success of the reconstruction plan is contingent upon the adherence to the three-phase ceasefire agreement brokered by Egypt, Qatar, and the US. Egypt has called on the international community to support these efforts. However, the future of the ceasefire remains uncertain, particularly following Israel's recent decision to block humanitarian aid into Gaza. The Egyptian plan also proposes a medium-term ceasefire agreement between Israel and Hamas, aiming to build trust and end unilateral actions.

To finance the reconstruction, President El Sisi announced the establishment of a special fund and called upon Arab leaders and the international community to contribute. Cairo will host a Gaza reconstruction conference in April, in collaboration with the Palestinian state and the United Nations. The Arab League summit concluded with a 23-point joint statement, endorsing Egypt’s plan and pledging financial and political support, while rejecting the forced displacement of Palestinians. UN Secretary-General António Guterres expressed his support for the Arab-led initiative.

Reactions to the plan have been mixed. Israel's Foreign Ministry criticized the proposal for "failing to address" the events of 7 October and reiterated its support for Trump's vision. Hamas, on the other hand, welcomed the plan as a "step forward" and called for its successful implementation. The White House, through National Security Council spokesman Brian Hughes, acknowledged the input from Arab partners while maintaining that Hamas cannot remain in power.

On the sidelines of the summit, President El Sisi held bilateral meetings with several leaders, including EU Council President Antonio Costa and Palestinian President Mahmoud Abbas. The international media extensively covered the summit and the reconstruction plan.

In addition to the reconstruction plan, discussions at the summit and associated meetings addressed the urgent need for medical care for Gazans. A meeting between an EU delegation and Health Minister Khaled Abdel Ghaffar focused on the capacity of Egyptian hospitals to receive Palestinians and the rehabilitation of Gaza’s healthcare system, which has been severely damaged by Israeli actions. The psychological impact on Gaza’s population, particularly children, was also a significant point of discussion.