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Mr Chairman,
I have the honour to speak on behalf of Australia, Canada and New Zealand. We appreciate the introductions this morning of the reports before us.
Our delegations believe that the Capital Master Plan is extremely important because of the collective obligation of member states to create a safe and efficient environment for our staff and others who use these facilities. We remain committed to the project.
The present progress report of the Secretary-General provides important, if not encouraging information on the status of possible funding arrangements for the renovation and of the work by the United Nations Development Corporation on the swing space building known as DC-5. In the context of a prospective offer by the host country of an interest-bearing loan, the report provides helpful information on how total costs vary with the amortization period. It also shows how a loan through capital markets for the construction period can reduce costs further. On preliminary review, none of the options involving an interest-bearing loan seems more economical than simply paying through assessment as the project proceeds.
We can only regret that the idea of an interest-free loan is not now under active consideration. Such an option would reflect the economic benefits that accrue to the host country from its position as host.
Mr Chairman
Our delegations are concerned about the serious delays in the development of DC-5 and the sharp escalation in costs, which raise questions about its viability. While continuing to work with the UN Development Corporation, the Secretary-General will need now to report to the General Assembly on other swing space options. We would like to know how much of the cost escalation stems from security-related design features? What is the status of tax exemption for the bonds to finance DC-5 and how does that affect the cost? We note that the legislative action to enable DC-5 to be built has not yet been taken. We look forward to these practical expressions of the stated commitment of host authorities.
Mr Chairman
The appointment of an advisory board to help on financing and other issues is overdue. We are pleased that the Secretary-General now intends to proceed with this imminently.
We agree with the observations of the ACABQ about the viability of parking space options and the timing of recommendations on the layout of conference rooms. We are pleased that the Secretary-General has agreed to the recommendations of the Board of Auditors, including taking steps to minimise administrative costs.
We can support the proposal to appropriate $18.7 million of the $26 million commitment authority we had approved for design and pre-construction services.
Thank you Mr Chairman.
