Egypt Proposes $53 Billion Gaza Reconstruction Plan: Draft

The proposal was being discussed at an Arab summit in Cairo on Tuesday, to counter a plan floated by US President Donald Trump last month to assume control of war-torn Gaza and displace its Palestinian population, including to Egypt and Jordan.

Palestinians, along with Arab states and many governments around the world, have condemned Trump's proposal, rejecting any efforts to expel Gazans.

- The draft plan, shared by a diplomatic source with AFP, outlines two phases: an early recovery phase and a reconstruction phase.

- The early recovery phase, expected to last six months and cost $3 billion, would focus on "removing mines and unexploded ordnance, clearing debris and providing temporary housing".

- To address immediate shelter needs in that phase, Egypt proposes setting up seven designated sites within Gaza to house more than 1.5 million displaced people in temporary housing units, each accommodating an average of six people.

- The plan also includes initial repairs to 60,000 partially damaged homes to accommodate 360,000 people.

- The reconstruction phase would take place in two stages over four and a half years.

- The first stage, running until 2027 with a budget of $20 billion, would focus on rebuilding essential infrastructure, including roads, utility networks and public service facilities. It also calls for constructing 200,000 permanent housing units for 1.6 million people and reclaiming 20,000 acres of land.

- The second stage, extending to 2030 at an estimated cost of $30 billion, aims to complete infrastructure projects, build another 200,000 housing units and establish industrial zones, a fishing port, a commercial seaport and an airport.

- The plan proposes creating an internationally supervised trust fund to ensure efficient and sustainable funding, as well as transparency and oversight.

- Cairo will also host a high-level ministerial conference to bring together donor countries, international and regional financial institutions, the private sector and civil society groups to secure funding. Egyptian state-linked media Al-Qahera News reported that the Arab summit's draft final communique welcomed the convening of the international conference in Cairo this month.

- Under the Egyptian plan, Palestinian militant group Hamas would be sidelined and replaced in Gaza with a committee made up of independent technocrats and non-partisan figures. The committee, according to the draft, would be formed under the Palestinian Authority to manage the territory for a transitional period of six months. The PA would then fully resume control over the enclave.

- The PA had previously governed Gaza before Hamas ousted it from the territory in 2007. After Hamas attacked Israel on October 7, 2023, Israel vowed to crush Hamas, and to ensure that it would have no part in ruling over Gaza.

- According to the draft, Egypt and Jordan are training PA-affiliated security forces to take on law enforcement in Gaza. The plan also calls for international and regional support to help fund this effort.

- The plan raises the prospect of an international presence in the Palestinian territories, including a possible UN Security Council resolution to deploy peacekeeping or protection forces in Gaza and the West Bank. This would be part of a broader "timeline leading to the establishment of a Palestinian state and the building of its capabilities".

- The plan acknowledges the challenge posed by armed factions in Gaza, saying the issue could be resolved through a "credible political process" that restores Palestinian rights and offers a clear path forward.

- The Arab summit's draft final communique also calls for holding elections in all Palestinian territories within one year, provided that appropriate conditions are met, according to Egyptian state-linked media. On Tuesday, Palestinian president Mahmud Abbas said presidential and legislative elections for the PA could be held next year, around two decades since the last general vote.