São Paulo – Economic losses stemming from the August 4 blast at Lebanon’s Port of Beirut are in the USD 6.7 billion to USD 8.1 billion range. So said the World Bank in its ‘Beirut Rapid Damage and Needs Assessment’ made available this Monday (31).
The report covers the physical damage, economic loss and priority needs for 2020 and 2021 in the Arab country. According to the World Bank, physical damages are in the USD 3.8 billion to USD 4.6 billion range, with housing and culture bearing the brunt.
Economic losses range from USD 2.9 billion to USD 3.5 billion, with the biggest impact felt in housing, followed by transportation and culture. Finally, priority needs in recovery and reconstruction are expected to amount to between USD 1.8 billion and USD 2 billion, with transportation hit the worst, followed by culture and housing.
The report includes a preliminary overview of losses caused by destruction of physical assets, disruptions in trade driving up the cost of external transactions, and the loss of fiscal revenue and further tax exemptions approved by government. The World Bank advises Lebanon to rebuild with transparency, inclusion and responsibility, with a framework tackling three ‘Rs’ – Reform, Recovery, and Reconstruction – for people-centered recovery.
A new prime minister
Lebanon is also plagued with a severe political crisis. In the wake of the explosion, several officials, including prime minister Hassan Diab, have stepped down. This Monday (31), following a Parliament vote, president Michel Aoun appointed Mustapha Adib as the new prime minister-designate.
Now, Adib will go about appointing his cabined. The state-run National News Agency (NNA) quoted Adib as thanking the president for his trust and saying he would pick a harmonic team to work on major reforms.
Pictured above, the new prime minister (on the left) is welcomed by Hassan Diab, who resigned earlier this month.
Translated by Gabriel Pomerancblum