Announcement of World Bank Assists Post War Reconstruction in Lebanon on July 7, 1977

• World Bank ·1a18 H Street, N.W., Washington, O.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/2 JULY 7, 1977 WORLD BANK ASSISTS POST WAR RECONSTRUCTION IN LEBANON The World Bank wilt assist Lebanon's post civil war reconstruction efforts with a loan of $50 million. During the civi 1 war of 1975-76 Beirut, along with several other cities and vi 11ages, was devastated. There was extensive damdge estimated at roughly $2 to $3 billion. The country's production capacity was reduced by some 40 to 50% at the end of 1976 as compared with the end of 1974. There is a need to restore a minimum level of key public servicesto allow for the resumption of Lebanon's regional role as a service center for the M1ddle East. The Government has given top priority to facilitating the recovery of the private sector. The Project will include rehabi litat~on and restoration of the port of Beirut as well as the telecommunications system to pre-war levels. The Project will also rehabilitate Beirut ls water supply and sanitary .faci 1 ities to ease the present situation. Studies to accelerate the preparation of future projects for urban reconstruc- tion and regional develqpment will be carried out. They will include a program for urban reconstruction and regional development, with sites and services for low-cost housing, industrial decentralization, integrated rural development in the poorest regions of Lebanon and mass transit projects. The loan will be for a period of 17 .years with 3 1/2 years of grace, at 8.2% per annum. Chemical Bank, New York, is participating in the loan~ - 0 - ------------------~---------------------------------------- NOTE: Mon~y figures are expressed in US dollar equivalents •