In December 2020, when the 3RF was launched, the priority needs of the 3RF were estimated at $584 million for its people-centered recovery track, and at $2 billion for its reform and reconstruction track.
The widespread damages and large reconstruction needs resulting from the Port of Beirut explosion require mobilizing both public and private resources, including public-private partnerships. However, the government’s collapsed revenues and inability to borrow significantly reduce its capacity to finance recovery and reconstruction in the immediate and short term. Moreover, the financial and banking crisis, accompanied by high levels of political instability and social unrest, limits the potential for mobilizing private sector financing. To provide immediate support for socioeconomic recovery, grant financing has therefore been required.
The 3RF envisages a two-phase financing strategy for recovery and reconstruction. In the short term, international grant financing was required to kick-start recovery and support urgent needs. Once progress is made on key reforms and macroeconomic stabilization, concessional loans and private finance can support reconstruction and help set Lebanon back on a path toward stability, growth, and sustainable development.