Lebanon's reconstruction delays: Key appointments and IMF talks loom

Report by Joe Farchakh, English adaptation by Mariella Succar

As the spring meetings of the International Monetary Fund (IMF) approach in April, Lebanon's reconstruction process is again in the spotlight.

The appointment of a new board for the Council for Development and Reconstruction (CDR) is one of the international community's key reform demands, along with other reforms such as amendments to the banking secrecy law, the restructuring of banks, and more.

The new CDR board is central to funding the reconstruction process due to its pivotal role in receiving aid and implementing projects. 

The criteria of competence and integrity remain essential in selecting candidates for these positions. However, according to LBCI sources, agreement on the new appointments has not been reached yet.

The international community focuses on the post-2006 reconstruction experience, which various domestic and international stakeholders influenced. This context shaped the firm stance taken by U.S. Deputy Envoy Morgan Ortagus on the matter.

Reconstruction in Lebanon has always been a contentious issue involving both official and unofficial entities, each with its own funding channels and operational mechanisms.

In 2006, Hezbollah's Jihad al-Binaa organization, which receives direct support from external sources, took the lead in rebuilding homes and infrastructure in Hezbollah-controlled areas.

In addition to Jihad al-Binaa, reconstruction projects were distributed between the Council for Development and Reconstruction, which serves as the official channel for foreign aid and development loans, the Higher Relief Committee, which manages emergency crises and compensation, and the Council for South Lebanon, which is directly funded by the Lebanese government and focuses on southern areas affected by the conflict.

This division of donors and implementing entities, combined with a lack of transparency in funding and expenditure mechanisms, has made the reconstruction process a part of Lebanon's complex political landscape and a key concern for the international community. 

There are fears that reconstruction funds may be diverted toward rebuilding the military infrastructure of Hezbollah, such as tunnels.

As a result, the reconstruction file remains frozen until a new CDR board is appointed that meets standards of integrity and competence. This step is seen as an indication of Lebanon's good faith toward the international community ahead of the upcoming IMF meetings.