What is Egypt’s $53bn plan for Gaza reconstruction?

The five-year scheme seeks to bring back Palestinian Authority rule to Gaza and redevelop the enclave

By Sondos Asem

Published date: 4 March 2025 

https://www.middleeasteye.net/news/what-egypts-plan-gaza-reconstruction

Egypt proposed on Tuesday a $53bn plan for the reconstruction of the Gaza Strip over five years, a text of which has been seen by Middle East Eye.

The proposal comes during the extraordinary Arab League summit held in Cairo as a reaction to US President Donald Trump’s declaration last month that he intends to take over Gaza and turn it into a tourism hub while displacing its Palestinian population. 

The Egyptian plan rejects the displacement of Palestinians and seeks to redevelop the enclave without depopulating it. 

It states that the Palestinian Authority (PA) will oversee the management of the reconstruction through a “Gaza Administration Committee” for the first six months.

The committee will be composed of technocrats and non-partisan members, operating under the umbrella of the Ramallah-based Palestinian government.  

Who will manage Gaza security?

According to the plan, Egypt and Jordan will train Palestinian police forces in preparation for their deployment in Gaza. 

The plan, however, states that this effort may include other countries in the future to provide political and financial support.

Then it proposes that the United Nations Security Council should consider the idea of “an international presence” in the occupied West Bank and Gaza Strip. 

This, the plan states, could involve the deployment of international protection or peacekeeping forces, as part of the rebuilding process.

Concerning armed Palestinian factions such as Hamas, the plan refers to their existence as a “key challenge” and stresses that their presence will only be resolved permanently if the root causes of armed resistance are addressed through a political process that upholds Palestinian rights.

Confidence-building measures 

The plan is premised on the need for the two-state solution, and that there is no alternative to it.  

A medium-term truce should take place between Israel and the PA across the West Bank and Gaza, during which negotiations would be held and confidence-building measures determined, including the cessation of all unilateral actions by both sides.

Israel should cease all settlement activities, land annexation, home demolitions, military raids into Palestinian cities, and attempts to alter the legal and historical status of holy sites.

The plan foresees the end of all armed resistance activities if a peace agreement is reached to establish a Palestinian state and end Israeli occupation. 

How will the plan be implemented?

First, temporary housing will be provided for displaced people in Gaza during the reconstruction process through one of the following options:

1.   Designated areas within the Gaza Strip, with seven sites accommodating more than 1.5 million people. Displaced Palestinians will be housed in temporary housing units, each accommodating an average of six individuals.

o    Site 1: Rafah, with a capacity of approximately 213,000 people.

o    Site 2: Khan Younis, with a capacity of approximately 223,000 people.

o    Site 3: Deir al-Balah, with a capacity of approximately 184,000 people.

o    Site 4: Gaza City, with a capacity of approximately 353,000 people.

o    Site 5: North Gaza, with a capacity of approximately 197,000 people.

o    Site 6: Gaza City, with a capacity of approximately 176,000 people.

o    Site 7: Gaza City, with a capacity of approximately 176,000 people.

Timeline for implementation

Early recovery phase

• Duration: Six months
• Estimated cost: $3bn
• Key activities:
• Removal of rubble from the central axis (Salah al-Din Road) and other areas in Gaza, with debris transported toward coastal collection sites.
• Preparing this axis as a reconstruction corridor.
• Providing 200,000 prefabricated temporary housing units to accommodate 1.2 million people.
• Initiating repairs on 60,000 partially damaged housing units, aiming to accommodate 360,000 people once the restoration is completed in the next phase.

 

Reconstruction phases

Phase I:

• Duration: 2 years
• Estimated cost: $20bn
• Key activities:
• Completion of rubble removal.
• Restoration of 60,000 partially damaged units.
• Construction of 200,000 new permanent housing units to accommodate 1.6 million people.
• Rehabilitation of 20,000 acres of agricultural land.
• Development of essential infrastructure, including electricity, telecommunications and service buildings.
• Establishment of water supply, fire-fighting systems and sanitation, with:
• 2 desalination plants
• 2 drinking and firefighting water reservoirs
• 2 irrigation water reservoirs
• 2 wastewater treatment plants

Phase II:

• Duration: 2.5 years
• Estimated cost: $30bn
• Key activities:
• Continued development of infrastructure and service facilities.
• Construction of an additional 200,000 permanent housing units to accommodate 1.2 million people, increasing the total number of permanent housing units to 460,000, sufficient for 3 million residents.
• Development of a 600-acre industrial zone.
• Construction of:
• A fishing port
• A commercial seaport
• Gaza International Airport
• Implementation of the first phase of the coastal road (Al-Rasheed Road), extending 10 km.

How will it be funded?

The total funding required for the reconstruction plan is estimated at $53bn, divided as follows:

1.     Early recovery phase:

o    $3bn for demining, rubble removal, temporary housing, and partial restoration of damaged buildings.

2.     Phase I of reconstruction (until 2027):

o    $20bn for infrastructure, service buildings, permanent housing units and agricultural land rehabilitation.

3.     Phase II of reconstruction (until 2030):

o    $30bn for completing infrastructure, building industrial zones, ports and an airport.

Funding sources must be diversified and coordinated, including:

• UN agencies, international financial institutions, donor countries, investment funds, development agencies and development banks.
• Foreign direct investment from multinational companies.
• Civil society organisations, which play a key role in mobilising financial resources for recovery and reconstruction efforts.

The plan adds that for the sake of transparency and efficiency, an internationally supervised trust fund will be established to manage financial commitments and oversee expenditures.