BEIRUT / ISTANBUL

Lebanon said Tuesday it signed a $250 million loan agreement with the World Bank to rebuild infrastructure in areas damaged by Israeli attacks.

Finance Minister Yassine Jaber signed the agreement with Jean-Christophe Carret, the World Bank’s regional director, the Lebanese Finance Ministry said in a statement.

Jaber said the loan serves as “seed funding for a reconstruction fund” and expressed hope it could grow to $1 billion.

He said the loan will cover infrastructure, including roads, electricity, water, schools, and hospitals in various regions hit during the recent Israeli war.

Carret said the loan is part of Lebanon’s emergency support program and forms “a cornerstone of the government’s recovery and reconstruction strategy,” the statement said.

He described the program as “a national framework designed to quickly restore vital services, rebuild damaged public infrastructure and lay the foundation for sustainable, inclusive and climate-resilient reconstruction.”

According to Carret, the support will allow the government to begin reconstruction and make the most urgent investments over the next 18 to 24 months to help displaced residents return, enable institutions to reopen, preserve and create jobs, and restore essential services.

Jaber said in June that the cost of rebuilding areas damaged by Israeli attacks is estimated at about $7 billion.

Israel launched a military offensive in Lebanon on Oct. 8, 2023, which escalated into a full-scale war by September 2024, killing more than 4,000 people and injuring around 17,000.

A ceasefire was reached in November, but Israeli forces have conducted near-daily attacks in southern Lebanon, claiming to target Hezbollah activities.

Under the truce, Israel was supposed to fully withdraw from southern Lebanon by Jan. 26, but the deadline was extended to Feb. 18 after Tel Aviv refused to comply. Israel still maintains a military presence at five border outposts.