As part of the 3RF financing strategy, the Lebanon Financing Facility is a multi-donor trust fund established by the World Bank, in close cooperation with the United Nations and the European Union and with support from key donors.
The objective of the Lebanon Financing Facility is to kick-start the immediate socio-economic recovery of vulnerable populations and businesses affected by the Port of Beirut explosion. It pools grant resources and strengthens financing, while supporting selected 3RF priorities.
As part of its focus on 3RF recovery and reforms tracks, the Lebanon Financing Facility aims to support the Government of Lebanon in the implementation of reforms and to prepare for medium-term recovery and reconstruction.
Formally established on December 18, 2020, the Lebanon Financing Facility will have an initial duration of 5 years. It seeks to raise US$75-US$100 million in its first year and reach up to US$200 million in its second year. To date, the Lebanon Financing Facility has received contributions and pledges from the governments of Canada, Denmark, France, Germany, Italy and Norway and from the European Union.
PRIORITIES AND IMPLEMENTATION MODALITIES
The Lebanon Financing Facility prioritizes its activities under three focus areas:
- SOCIOECONOMIC AND BUSINESS RECOVERY: Addressing urgent recovery priorities of vulnerable communities and businesses in Beirut.
- REFORM AND RECONSTRUCTION: Supporting the design and implementation of targeted reforms in governance, business environment and the social sector, in order to build citizen trust in state institutions.
- COORDINATION, MONITORING, ACCOUNTABILITY AND OVERSIGHT: Strengthening institutional capabilities to facilitate and monitor 3RF’s multi-stakeholder dialogue.
- The Lebanon Financing Facility adopts innovative and flexible implementation modalities. It seeks to provide direct support to capable non-government organizations and civil society organizations as well as to private sector intermediaries to reach affected micro-, small- and medium-sized enterprises.
GOVERNANCE AND TRANSPARENCY
A partnership Council guides and monitors the implementation of the Lebanon Financing Facility. The Partnership Council’s responsibilities include ensuring alignment of financing with 3RF priorities, guiding trust fund priorities, endorsing annual work plans and budgets, and reviewing progress.
The Lebanon Financing Facility’s Partnership Council is co-chaired by the World Bank Country Director and a senior-level representative from the European Union. Members of the Lebanon Financing Facility’s Partnership Council include: the United Nations Resident and Humanitarian Coordinator (as observer); all Lebanon Financing Facility’s donors with a minimum contribution of US$5 million; Government representatives; and civil society organizations/non-governmental organizations/private sector representatives (on a rotating basis) as observers.
LEBANON FINANCING FACILITY FINANCING AND DONORS
Target Umbrella/Multi-Donor Trust Fund (MDTF) Donors: Canada, Denmark, European Union, France, Germany, Italy, Norway, Sweden, United Kingdom.
Total funding raised (as of end March 2023) amounts to approximately US$70 million. Details are included in the table below: