Mr. Chair,

1. I have the honor to speak on behalf of the Group of 77 and China on three sub-agenda items that is Seismic Mitigation Retrofit and Life-Cycle Replacement Project at the Economic and Social Commission for Asia and the Pacific (ESCAP) premises in Bangkok, Progress on The Replacement of Office Blocks A-J at The United Nations Office At Nairobi and the Ninth Annual Progress Report on The Strategic Heritage Plan at Geneva.

2. The Group would like to thank Mr. Chandramouli Ramanathan, Controller, and Assistant Secretary-General for introducing the progress reports on construction projects of ESCAP, UNON and Strategic Heritage Plan. We also thank Mr. Abdallah Bachar Bong, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) for presenting the Advisory Committee’s related reports.

3. Taking this opportunity, we express our deepest gratitude to the states of Thailand, Kenya and Switzerland as host countries of ESCAP, UNON and Heritage Plan respectively, for their continued support to the work for facilitating the implementation of the construction projects.

ESCAP

Mr. Chair,

4. For the past 75 years, ESCAP has served as the most inclusive intergovernmental platform in the Asia-Pacific region. ESCAP continue to support countries toward inclusive, resilient and sustainable recovery and to bring the SDGs back on track. Therefore, the group stresses the importance of a successful and timely completion of the Seismic Mitigation Retrofit and Life-Cycle Replacement Project, or the SMP. In this regard, we are pleased to learn about the commencement of main construction works in November 2021 and that the project is currently progressing well with the estimate to be completed in 2023.

Mr. Chair,

5. The Group would like to further highlight the following points on ESCAP.

i. First, the ongoing engagement between ESCAP and the host country has allowed the SMP an opportunity to benefit from local expertise and technical knowledge. We welcome the use of local materials and construction techniques which are advantageous not only in terms of cost efficiency but also enabling ESCAP to better manage the risk of global supply chain disruptions resulting from the pandemic.

ii. Second, on planning and design activities, the Group welcomes regular consultations between ESCAP and stakeholders to gather feedback on the operational requirements. These consultations have mitigated risk of any further late changes that might potentially result in additional costs during construction.

iii. Third, the Group underscores the importance of effective project governance, oversight, cost-effectiveness, transparency and accountability to ensure that the SMP is implemented within the approved budget and timetable. The Group recognizes the efforts of the project management team and encourages the team to continue their close engagement with the Global Asset Management Policy Service (GAMPS). We hope that the relevant risk mitigating measures are adopted in a timely manner and that the recommendations of the Office of the Internal Oversight Services (OIOS) are fully implemented.

UNON

Mr. Chair,

6. The Group continues to attach great importance to progress on the replacement of office blocks A-J at the United Nations Office at Nairobi (UNON). In this regard, we welcome the fifth progress report by the Secretary-General which contains an update on the project since the issuance of his previous report. The special role played by UNON in the global United Nations system cannot be over-emphasized. Established in 1996, UNON is the only UN’s headquarters station in the global south. It is home to thousands of national and international United Nations staff members, who work on a daily basis to advance the goals and values of the UN in the region and around the world, but sometimes in a very difficult and challenging office environment.

7. The Group of 77 and China would further highlight the following points on UNON.

i. First, We note with satisfaction that the three components of the project are on track for completion by the end of 2024 within the approved overall schedule, with project close-out activities on schedule for completion by the end of 2025. But we are concerned about the delays in the other two components: the flexible workplace strategies component and the new building component. We encourage the Secretary General to undertake all efforts to mitigate the delays associated with the procurement process and the construction planning phase. We also note that the report of the Secretary General has identified main risks that will most likely have an impact on the implementation of the project. In this regard, the efforts being undertaken by the project management team to closely monitor and mitigate project risks to ensure the delivery of the project within the scope, budget and timeline are steps in the right direction.

ii. Second, we stress the importance of effective oversight and coordination in the management of the project to ensure its timely completion and within budget. We welcome the continued coordination and oversight being provided by the Global Asset Management Policy Service at Headquarters including the constant consultations with the project management team and regular field visits to the projects site to assess progress.

iii. Third, The Group acknowledges the continuous quantitative project risk assessment being conducted to review the project risk register and provide guidance on the management of project risks. We acknowledge with appreciation the outcome of the risk assessment conducted in June 2022, which shows a steady increase in the confidence levels in delivering the project within the estimated project cost of $66.26 million; from a confidence level of 27 per cent in 2019 to 47 per cent in 2021 and to the current level of 66 per cent.

Stragegic Heritage Plan

Mr Chair,

8. Our Group welcomes the ninth annual progress report of the Secretary-General on the Strategic Heritage Plan of the United Nations Office at Geneva. We also welcome the voluntary financial contributions made by the Government of China, as well as other countries to the project. We encourage the Secretary-General to strengthen his efforts in soliciting contributions from other member states towards other packages of work within the scope of the Strategic Heritage Plan, including those that will effectively be applied to reduce Member States’ assessed contributions to the strategic heritage plan project.

9. The Group of 77 and China would further highlight the following points on Strategic Heritage Plan.

i. First, The Group notes that progress has been made in the key project activities, including the completion of the new permanent building H, the completion of the temporary conference building, the completion of the pre-construction phase for the renovation of the main 1930s and 1950s historic buildings, and the successful finalization of procurement of the 1970s building E. We also note that due to implementation of value engineering and the outcome of the building E contract procurement process, the overall forecasted financial position of the project has improved. The current forecast now indicates that the project will exceed the project budget by less than 1 per cent. We noted that the confidence level of completing the strategic heritage plan within the approved budget has increased to 53% as compared to 16% last year.

ii. Second, The Group reemphasizes that close monitoring, rigorous project management, effective internal control and comprehensive risk mitigation measures are key to ensuring the progress and completion of the project within the approved scope, timeline and budget.

iii. Third, The Group notes that there are 23 recommendations of the Board of Auditors for the year ended on 31st December, 2021, which are under implementation. The Group stresses that all pertinent and approved recommendations of the Board of Auditors must be implemented expeditiously to help business transformation.

iv. Fourth, the Group notes with concern with lacking of decision on the scheme of appropriation, considering the size and complexity of the project. The Group reiterates its support to the Secretary-General’s recommendation that the scheme of appropriation for the project be a one-time upfront appropriation, with a mix of onetime and multi-year assessments.

v. Last but not least, on the issue of the valorization strategy, though the Group appreciates the merits of this strategy, we reiterate that the income from valorization is NOT related to the nature of a construction project. The Group also notes that the overall amounts now realistically achievable for the valorization strategy are likely to be lowered in the short to medium term, with the withdrawal of the lease proposal for the Feuillantines site. <.p>

10. In conclusion, the Group of 77 and China would like to assure you of our continued commitment to work constructively with all delegations and to engage in constructive deliberations on this agenda item to reach a positive outcome in a timely manner.

I thank you Mr. Chair.