Beirut Port Explosion Compensation

The blast at the port of Beirut on August 4 damaged more than 62,000 homes, 14,848 businesses, and 20 government institutions.

At this stage, it was decided on a compensation budget of 100 billion Lebanese pounds (about $66 million). The compensation budget will be given to 10,274 homes at this stage, covering 60 percent of the value of the property.

The Lebanese army received the task of mapping the damage, classifying the damaged property, and distributing the funds. The army will contact the eligible people through advertising and telephone calls and each eligible person will sign an undertaking in which he will use the financial compensation solely for the renovation of his home.

To our understanding, the responsibility for the overseeing and running of the compensation mechanism was given to the Lebanese army for three main reasons:

1. Capability – The military is an organized and well-structured body that can effectively manage this mechanism.

2. Consensus on the status of the military – the imposition of responsibility on the military will diminish and even neutralize the allegations of its corruption, distribution of funds according to interests, and making funds disappear.

3. There is a fear that the US sanctions will prevent the arrival of the funds to their destination if they will be transferred via the civilian economic channels, and therefore the LAF (funded by the United States) will be the one that holds the compensation funds budget and distribute it.