Palestinian Govt Unveils US$67 Billion Gaza Reconstruction Plan

October 18, 2025 | 08:38 am

TEMPO.CO, Jakarta - The Palestinian Prime Minister, Mohammad Mustafa, announced on Thursday, October 16, 2025, that his government, in partnership with Arab and international experts, has developed a plan for the recovery and reconstruction of Gaza. The reconstruction will be conducted in three phases, costing around US$67 billion or equivalent to Rp1.111 trillion, and will take place over five years.

Speaking at a press conference in Ramallah, as reported by Anadolu, ahead of a special meeting on the recovery plan, Mustafa stated that the initiative aims to rebuild the war-torn Gaza Strip. The two-year genocidal war Israel unleashed on the enclave has left most of the region devastated. Diplomats and representatives of international organizations attended the event.

Mustafa outlined that the first phase, focusing on meeting urgent humanitarian needs and infrastructure, will last for six months with a cost of US$3.5 billion. The second phase, spanning over three years, will require US$30 billion, while the final stage will focus on completing the reconstruction and long-term recovery.

He mentioned that discussions are ongoing with international partners to secure resources for the plan's implementation. Mustafa added that a major reconstruction conference will be held in Egypt one month after the end of the war.

Mustafa emphasized that Israel must fulfill its obligations by withdrawing from Gaza, opening border crossings, and allowing the entry of humanitarian aid and reconstruction materials. He also sought guarantees from any country regarding the governance of Gaza.

He stressed that the Palestinian Authority (PA) already governs the West Bank under Israeli occupation. The PA intends to expand its authority over Gaza when conditions allow. "There will be no internal Palestinian dispute on this matter," he stated.

However, Israel opposes the role of the Palestinian Authority or Hamas in governing Gaza post-war. Mustafa reiterated that the PA considers Gaza as part of the Palestinian state. They are working tirelessly to restore governance in the territory.

Negotiations on the second phase of the ceasefire agreement are expected to commence in the coming days. Hamas demands a complete end to the war, the withdrawal of Israeli troops, and the retention of its weapons.

A ceasefire agreement for Gaza was reached between Israel and Hamas last week, based on a plan proposed by US President Donald Trump. The first stage includes the release of Israeli hostages in exchange for Palestinian detainees. The plan also encompasses the rebuilding of Gaza and the formation of a new governance mechanism without Hamas.

Since October 2023, Israeli onslaughts have claimed the lives of nearly 68,000 Palestinian residents in the area. Most of them were women and children. Much of the Gaza area is uninhabitable.

Aid Still Facing Difficulties in Entering Gaza

A week after the ceasefire, Israel continues to keep the Rafah border crossing with Egypt closed. The closure persists despite repeated international calls to allow large-scale aid deliveries. Meanwhile, Israeli attacks have killed and injured several Palestinian residents in northern Gaza.

Al Jazeera reported that for several days, the United Nations has been warning that there has been little progress in delivering aid to Gaza. Aid should be delivered on a large scale through all border crossings to meet urgent humanitarian needs. Based on the agreement to end the genocide, Israel should allow a surge in aid shipments.

The UN said on Friday that aid convoys face difficulties in reaching famine-stricken areas in northern Gaza due to bombed roads. Vital routes such as Zikim and Beit Hanoun to northern Gaza are still closed.

The World Food Programme (WFP) stated it has been delivering an average of 560 tons of food per day to Gaza since the ceasefire began last week, but this amount is still below what is needed. The UN agency stated it has enough food to feed all of Gaza's residents for three months.

The head of humanitarian affairs at the UN, Tom Fletcher, said this week that thousands of aid vehicles need to enter every week to address widespread malnutrition, displacement, and the collapse of infrastructure.

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