Gaza Recovery Plan Shrinks as Pilot Project Faces Delays and Skepticism
The Trump-brokered Gaza recovery plan, once envisioned as a comprehensive rebuild of the territory, has been scaled back to a modest pilot project in southern Gaza. According to the Board of Peace (BoP), the initiative—a temporary camp for a small fraction of the 2 million displaced Palestinians—faces significant delays, with no construction yet underway near Rafah. Satellite images of the area show disturbed earth but no new structures, raising doubts about its feasibility before Israel’s October 27 elections.
International Stabilization Force Faces Implementation Hurdles
The BoP’s plan hinges on the deployment of an International Stabilization Force (ISF), with Moroccan and Kosovan officers already in Israel to form its core. A logistical base at the Kerem Shalom crossing is nearing completion, but preparatory work on the Rafah camp remains stalled. A Western diplomat in Jerusalem noted that progress depends on the outcome of Israel’s elections, which could reshape the political landscape and influence the project’s survival.
“The aim is just to keep something going, keep the ball in play,” the diplomat said, warning that failure to advance the plan could allow more extreme factions within Netanyahu’s government to push for “wholesale population transfer and colonisation.”
Israel’s Ceasefire Violations and Humanitarian Blockades
Israel has repeatedly violated the October ceasefire, blocking reconstruction and restricting aid flows. The Israeli military now occupies over 60% of Gaza, creating a buffer zone that complicates the BoP’s vision. Since the ceasefire, more than 1,100 Palestinians have been killed in Israeli strikes, and forces have advanced beyond the agreed ceasefire line, according to reports.
Analysts like Muhammad Shehada, visiting fellow at the European Council on Foreign Relations, argue the pilot project risks becoming a “caged and controlled Potemkin village,” used to justify further military campaigns. “Israel is trying to build a facade of progress to legitimize its escalation against the rest of Gaza,” Shehada said.
Palestinian Criticism and Internal Divisions
Critics, including former Israeli PM Ehud Olmert, have condemned the Rafah pilot as a “concentration camp” in the making. The National Committee for the Administration of Gaza (NCAG), a group of Palestinian professionals and technocrats, remains split over the plan. Some fear it could deepen divisions among Gaza’s population, prioritizing a small group over the majority.
“Temporary arrangements must never become a substitute for a comprehensive solution,” said Palestinian Authority Foreign Minister Varsen Aghabekian, who criticized the BoP’s focus on a pilot project as neglecting the broader humanitarian crisis.
Funding Gaps and Political Tensions
The $17bn pledged for Trump’s 20-point peace plan has seen minimal implementation. While the EU’s Palestine Donor Group recently raised €883m for infrastructure, the BoP is negotiating to redirect $11bn in frozen Palestinian tax revenue and bank assets. The PA has condemned this as an attempt to “bargain with Israeli funds,” demanding immediate release.

“These are not Israeli funds to withhold or bargain with,” Aghabekian said. The funding shortfall underscores the project’s fragility, with officials estimating the pilot could be ready by late 2026 at the earliest.
Cairo Talks and Hamas Disarmament Deadlock
Cairo negotiations on Hamas disarmament have stalled, with Israel continuing airstrikes and territorial advances. A Palestinian source told *Haaretz* that progress is unlikely without an Israeli withdrawal from Gaza. The BoP’s high representative, Nickolay Mladenov, faced criticism for downplaying Israeli violations in a UN report, drawing accusations of bias.
The BoP adviser and Trump administration lead negotiator in Israel, Aryeh Lightstone, privately urged Israel to ease restrictions on “dual-use” aid, but the government has yet to approve requests for the ISF’s entry or a vetted Palestinian police force.
FAQ: Gaza Recovery Plan and Pilot Project
What is the current status of the Gaza pilot project?
The pilot project near Rafah, intended to house a small fraction of displaced Palestinians, has not begun construction. Satellite images show no new structures, and delays are linked to Israel’s October elections and ongoing military activity.
Why is the project controversial?
Critics argue it risks normalizing Israeli control over Gaza and prioritizing a select group of Palestinians. Former Israeli PM Ehud Olmert called it a “concentration camp” in the making, while Palestinian officials warn it could deepen divisions.
How is funding being secured?
The BoP is negotiating to redirect $11bn in frozen Palestinian assets, but the PA opposes this as an attempt to bargain with Israeli funds. The EU has pledged €883m for infrastructure, though it remains complementary to the BoP’s efforts.

Did You Know?
The pilot camp would be located in a buffer zone near Rafah, with Israeli forces expected to withdraw from the ceasefire line. The ISF, initially planned for 20,000 troops, will likely number around 5,000, drawn from Morocco, Kosovo, and other nations.
Pro Tip
Monitor updates from the European Council on Foreign Relations and *Haaretz* for ongoing analysis of the BoP’s challenges and Israel’s military movements in Gaza.
For more insights on Middle East conflicts, explore our coverage of regional tensions.
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