World April 7, 2026

Banga Defends World Bank’s Role in Gaza Reconstruction and Trusteeship of Donor Funds

World Bank president says institution will act as a limited trustee for a donor trust fund while pursuing separate measures to support Gaza

By Nina Shah
Banga Defends World Bank’s Role in Gaza Reconstruction and Trusteeship of Donor Funds

World Bank President Ajay Banga said the Bank intends to act as a limited trustee for a reconstruction trust fund called for in a U.N. Security Council resolution and linked to President Trump’s Board of Peace, while also taking independent steps to support Gaza’s recovery. Banga spoke at an Atlantic Council event in Washington after two protesters interrupted his remarks and urged him to resign from the Board of Peace. He described the Bank’s role as holding funds on behalf of donors, with the Board of Peace deciding how resources are allocated, and highlighted existing World Bank initiatives for the Palestinian territories.

Key Points

  • The World Bank will act as a limited trustee for a donor-funded trust fund intended for Gaza reconstruction, holding funds while the Board of Peace determines allocation - impacts banking, international finance and reconstruction sectors.
  • Ajay Banga highlighted prior World Bank steps including formation of a Palestinian expert group and an equity investment in the Bank of Palestine to preserve financial capacity post-crisis - relevant to regional banking and financial services.
  • Major uncertainties about the reconstruction effort persist, including disarmament, troop withdrawals, the final size of the fund, and humanitarian aid flows - these factors bear on construction, infrastructure, and humanitarian sectors.

WASHINGTON, April 7 - The World Bank is positioning itself to play a constructive, fiduciary role in efforts to rebuild Gaza after two years of conflict, its president said on Tuesday, following a brief disruption by protesters during a public appearance. Ajay Banga told attendees at an Atlantic Council event in Washington that a United Nations Security Council resolution explicitly directed the World Bank and other financial bodies to coordinate with President Donald Trump’s Board of Peace on financing Gaza’s reconstruction, including by creating a dedicated trust fund.

Banga emphasized that the direction from the U.N. Security Council is clear - the Bank is to work alongside the Board of Peace and other institutions. He said the World Bank would serve as a limited trustee for a trust fund established by governments that want to contribute toward reconstruction. While the Bank would hold the funds, Banga said that decisions about how the money is spent and who receives it would be made by the Board of Peace itself.

The president made these remarks after two protesters interrupted his speech and called for his resignation from the Board of Peace. Banga noted that he was appointed by President Trump to serve on the board’s executive group. Other appointees to the board include U.S. Secretary of State Marco Rubio, presidential advisers Jared Kushner and Steve Witkoff, along with several others, with President Trump serving as the board’s permanent chairman.

Trump unveiled the Board of Peace initiative in September when he set out his plan to end the war in Gaza and later convened an initial meeting in February. At that session, Trump announced that a number of nations had pledged $7 billion to a reconstruction fund for Gaza.

Estimates for rebuilding the territory, which Banga said has been reduced to rubble after two years of war, vary and can reach as high as $70 billion. Significant uncertainties remain about key prerequisites for reconstruction - including disarmament of Hamas militants, the withdrawal of Israeli forces, the ultimate size of the reconstruction fund and how humanitarian aid will be delivered to civilians in Gaza.

Describing the Bank’s specific actions related to the Palestinian territories, Banga said that two years ago the World Bank assembled a Palestinian expert group that counts representatives from Jordan, Palestine, Egypt, Israel, the United States and European countries. He also said the Bank had made an equity investment in the Bank of Palestine to ensure that a functioning financial institution would be available when reconstruction efforts begin.

"So what we’re trying to do, actually, is to be a constructive part in that role, (to) try to follow that ... UN high council (Security Council) resolution," Banga said, according to his remarks. He stressed the Bank’s objective of reconnecting Palestine and Gaza with neighboring countries both digitally and physically, and of helping to facilitate trade once reconstruction activity is underway.

The World Bank’s stated trustee role is narrowly defined in Banga’s account: the institution would hold donor resources in a trust fund but would not be the decision-maker on distribution or selection of recipients. Those authorities, he said, would rest with the Board of Peace.

Banga also outlined separate World Bank initiatives aimed at preserving financial infrastructure and building a framework of local technical expertise that could support post-conflict recovery. The Palestinian expert group and the Bank of Palestine equity stake were cited as concrete steps taken prior to the current phase of planning.


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Risks

  • Unresolved political and security conditions - disarmament of Hamas and withdrawal of Israeli troops remain unsettled, which could delay or limit reconstruction funding and affect construction and infrastructure firms.
  • Ambiguity around the final size and governance of the reconstruction fund - uncertain funding volumes and allocation decisions could constrain the pace of rebuilding and influence international finance and development markets.
  • Potential interruptions or constraints on humanitarian aid flows to Gaza - disruptions to aid delivery would exacerbate humanitarian needs and could affect donor confidence and financial commitments in the humanitarian and NGO sectors.

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