Madam Chair,

1. I have the honor to deliver this statement on behalf of the Group of 77 and China on agenda item: Eleventh Annual Progress Report on the Strategic Heritage Plan at the United Nations Office at Geneva.

2. The Group wishes to thank Mr. Chandru Ramanathan, Assistant Secretary-General and Controller, Mr. Jakub Chmielewski, Vice- Chair of the Advisory Committee on Administrative and Budgetary Questions, Mr. Ge Sheng, the Director of External Audit (of China) and Chair of the Audit Operations Committee, BOA, for introducing their respective reports.

2. The Group expresses its gratitude to the Government of Switzerland, as host country of the United Nations Office in Geneva (UNOG), for its continued support to facilitate the implementation of the Strategic Heritage Plan construction project.

3. The Group is greatly committed to the preservation of the patrimonial value of the United Nations premises at Geneva. The compound around the Palais des Nations reminds us of the efforts that were undertaken to forge a multilateral system prior to the foundation of the United Nations. It is a reminder of the events that unfolded after the failure of the League of Nations and a beacon for us to avoid losing the United Nations in similar fashion. These very symbolic reasons incentivize us to ensure a successful completion of this construction project.

4. Having said this, the Group needs to highlight some of the very serious concerns on which it is impossible not to point out:

5. First: The tenth progress report presented by the Secretary General on this construction project, just one year ago, forecasted an overall budget overrun by 3 per cent, which was equivalent to a projected shortfall of 39.5 million Swiss francs. For the Group it is difficult to understand that just in one-year span, the eleventh progress report indicates that now there is a forecast of a cost overrun of 14% of the approved budget, representing an additional demand of 118.2 million Swiss francs, this is without even having certainties on the amount of the guaranteed maximum price for building E. Furthermore, the project is facing additional delays by 24 months for the renovation of historic buildings and 16 months for building E.

6. Whereas the Group is cognizant that going above the initial budget by a construction project is something that could happen, something completely different is receiving the request as we have before us in this session. With significant increases in both the projected costs and expected delays, the Secretariat needs to reflect and account to the General Assembly on how it has allowed the situation to progress to this stage, and to urgently put in place mitigation measures to salvage the situation.

7. Second: Looking at the previous resolutions on this construction project, the General Assembly stressed the importance of effective governance, oversight, transparency and accountability in the management of the project to ensure that the project objectives are achieved on time and within the approved budget. The Group has very serious doubts that these resolutions of the Assembly have been taken into account when we are asked to provide almost 80 more million Swiss francs than we were asked just last year. We note that the Board of Auditors have also recommended that the project strengthens oversight and mitigate risks of additional costs and delays.

8. The Group of 77 and China finds this situation untenable for a project in this stage of maturity.

9. Third: There are other matters on which the Group will seek clarity, like the continuous delays in securing a guaranteed maximum price for building E which was something expected for this year, as envisaged in the tenth progress report, and the decision by the Steering Committee include equipment to allow for remote participation via remote simultaneous interpretation.

10. Finally, the Group will seek accountability on the management of this construction project, which is something that needs to be urgently addressed to avoid compromising the continuation of this project.

11. In conclusion, Madam Chair, the Group would like to assure you of our continued commitment to work constructively with all delegations on this agenda item.

I thank you.