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Billions in damages: Israel rebuilds after Iran war, destruction in south and north

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As the dust of battle settles on most war-torn fronts, Israel is pursuing numerous aggressive rebuilding projects.

At a press conference in mid-July, Ze’ev Elkin, the Finance Ministry’s point man for rehabilitating the southern and northern border areas, announced a NIS 1 billion ($297 million) plan for 28 communities displaced by attacks from the Lebanese terror group Hezbollah.

“We are moving from defense to offense… with a new vision for a flourishing and prosperous north,” Elkin said some 21 months after Hamas launched its war with Israel on October 7, 2023, which Hezbollah joined a day later.

“A young reservist will be able to buy a plot… at an accessible and very reasonable price and start a family in the most beautiful place in the country,” Elkin said. “This is not a dream — this is the new reality.”

With tens of thousands of buildings damaged in Israel’s multiple fronts — including many damaged by missiles fired by Iran during the 12-day Operation Rising Lion in June this year — Israel’s goal is not only to repair damage but also to improve infrastructure to double down on the country’s long-term strategic growth.

Many of these programs have changed over time and are quite complicated. The following is an overview of the latest developments for the various plans and programs in place, including for Israelis building private safe rooms in regions not directly damaged by fighting.

After Israeli homeowners filed more than 45,000 claims for some NIS 5 billion ($1.47 billion) of property damage sustained during Israel’s 12-day war with Iran in June, a government initiative called “Renovating in Unity” was designed to bring together private contractors, local authorities, and government officials to manage the large-scale restoration effort.

Under the plan, local authorities would first map out the work needed under their jurisdictions, and then have all work for each building or complex completed by one large construction firm. The idea is that having one point of contact for each building or complex would streamline the process, removing the need to create price quotes and monitor progress for each individual damage claim.

The entire process is managed and funded by the state, and victims are not required to spend any of their own money. In many cases, the plan requires residents in a building to agree upon a unified design and standard.

Damage claims in different areas range from collapsed buildings to relatively minor harm to windows and building exteriors. The project is jointly managed by the Construction and Housing Ministry, the Tax Authority, and the Israel Builders Contractors Association, in cooperation with local authorities.

Individuals whose homes were damaged have the right to opt out of this plan and arrange repairs privately, at the government’s expense, but they may face significant delays in the process, the government has warned.

While this type of renovation work is not usually done by large construction firms, it is believed that this is the best way to manage the large-scale work that is required.

The Renovation Contractors Association, a group representing some 6,500 renovation contractors throughout the country, has charged that the model gives the large construction companies work that would otherwise go to smaller renovators better suited for the........

© The Times of Israel