STATEMENT ON BEHALF OF THE GROUP OF 77 AND CHINA BY H.E. AMBASSADOR DUMISANI KUMALO'
PERMANENT REPRESENTATIVE OF THE REPUBLIC OF SOUTH AFRICA TO THE UNITED NATIONS AND CHAIRMAN OF THE GROUP OF 77 ON AGENDA ITEM I24Z CAPITAL MASTER PLAN TO THE FIFTH COMMITTEE OF THB GENERAL ASSEMBLY New York, 24 April 2006 Mr Chairman, I have the honour to speak on behalf of the Group of 77 and China after the item 124:'Capital MasterPlan'. adoptionof draft resolution NC.5l60lL.38 on agenda The Group of 77 and China welcomes the adoption of this draft resolution becauseit recognizes the importance of proceeding with a sense of urgency with the implementationof the Capital Master Plan, which is the comprehensiveplan to renovate and refurbish the ageing and unsafe United Nations Headquarterscomplex in New York. of The Group's endorsement the immediateallocation of $100.5 million for the and pre-constructionphasesof the project is motivated by the need to ensurethat design the Headquarterscomplex is brought up to safety and security standardsand continues to be a worthy icon of the world's pre-eminentmultilateral organisation. Mr Chainnan, The implementation of the Capital Master Plan has regrettably been repeatedly delayed by the collapse of many of the assumptionsthat initially underpinned it. For example,ihr New York State legislaturerefusedto authorisethe constructionof a swing ,pu"" facility on the Robert Moses Playground and refused to authonze the issuanceof tax free bonds to build LINDC5, the Host country failed also to commit to the informal given before the adoption of resolution 571292to provide an commitment and assurance interest free loan as well as to renew even the disappointinginterest bearing loan offer it had made.Rental and constructioncostsin the Host city also continue to rise. The delays in the implementation of the Capital Master Plan have dramatically escalatedcosts at a time when the United Nations is facing rising demands for its humanit arian and peacekeeping missions and is expected to help address massive worldwide. development,environmentaland security challenges The Group of 77 and China was therefore deeply distressed when the Host to country was unabie to join the consensus approvethe full allocation of funds requested and held up the adoption of the resolution by several weeks. by the Secretary-General The Group felt tftut the arbitrary allocation of $23.5 million proposedby one delegation

would not have been sufficient to allow the United Nations to move forward on schedule with the critical lease obligations and commitments for the pre-constructionwork. The Reuter's estimatethat Group also noted with deep concern Assistant Secretary-General each day that the adoption of the $225,000 the cost of the Capital Master Plan escalated resolutionwas delayed. Mr Chairrnan, The Group wishes to reiterate its position that it expects the Host country to shoulder its responsibilities towards the United Nations and to commit itself fully to the timely implementationof the Capital Master Plan. The Group also recalls paragraph30 of resolution A/RES|171292,which requests the Secretary-General to take the need to continue exploring ways to increase procurement opportunities for vendors from developing countries and countries in transition into considerationduring the implementationof the Capital Master Plan. In the discussionsleading to the adoption of the resolution, the Group expressedconcern over the narrow formulation of the tender for the contract to hire a construction management firm for the Capital Master Plan. The Group believes that the tender may favour construction experts from developed countries and also has misgivings regarding the maruler in which the tender was advertised. The Group therefore calls on the SecretaryGeneral to take measuresto ensure that the Capital Master Plan is implemented in a mannerthat respectsthe multinational natureof this Organisation. Mr Chairrnan, Following the adoption of the resolution before us, the Capital Master Plan team is in a position to proceed - in a strategyneutral fashion - with critical design and preconstructionwork. However, Member Stateswill soon be called upon to take a decision on the scope option and financing mechanismsfor the actual construction phase of the project. For its part, the Group of 77 and China is committed to revisiting the scope and financing aspectsin the secondresumedsessionof this Committee. The Group therefore looks forward to receiving a more comprehensivebusiness analysis proposal on the possibility of constructing a new permanentbuilding on the North Lawn, which would help Member Statesdecide on the scopeoption. I thank you, Mr Chainnan.