Mr. Chair,

1. I have the honor to submit this written statement on behalf of the Group of 77 and China under agenda item 138: Proposed Programme Budget for 2022: Construction and property management in relation to the progress on the replacement of office blocks A-J at the United Nations Office at Nairobi (UNON).

2. The Group would like to thank Mr. Chandramouli Ramanathan, Controller, Assistant Secretary-General for Programme Planning, Budget and Finance, for introducing the fourth annual progress report of the Secretary-General on the replacement of office blocks A-J at the United Nations Office at Nairobi. We also thank Mr. Abdalla Bachar Bong, Chair of the Advisory Committee for Administrative and Budgetary Questions (ACABQ), for introducing the Committee's related report.

3. At the outset, the Group of 77 and China would like to express its profound gratitude to the Government of Kenya as the host country of UNON for its continued support to the work of the United Nations Office at Nairobi, the only UN headquarters in the global south. In addition, the group acknowledges the support provided by the Government of Kenya in the implementation of the project and in particular the important role being played by the host country Liaison Committee. The Group of 77 and China reiterates the importance of the continued partnership and collaboration with the host country to ensure successful implementation of the project.

4. The G77 and China notes that the objective of the project remains unchanged: addressing the urgent challenges related to health, safety and code compliance associated with the existing office blocks A-J at the Gigiri complex and that the buildings reached the end of their useful lives in 2018. In this regard, any delays in the implementation of the renovations works remain a major concern since it is a risk exposure to the members of staff working at the complex. We equally take cognizant of the fact the further investment in the maintenance of the existing buildings is uneconomical.

5. The Group acknowledges the progress made in the replacement of office blocks A-J at the United Nations Office at Nairobi which is presented in the current report of the Secretary General, being the fourth progress report since the inception of the project. In his report, the Secretary General indicates that the updated project schedule forecasts a phased project completion, with the flexible workspace and new building components being completed by the end of 2024 and overall project close-out continuing until the end of 2025. Despite the slippage in the project implementation schedule, which is predominately attributed to the COVID-19 pandemic and the global supply chain disruptions, the group notes the efforts made to mitigate further delays. The Group therefore requests the Secretary-General to closely monitor and mitigate project risks, with the aim of ensuring successful project delivery as mandated by the General Assembly.

6. The G77 and China takes note of the recent Monte Carlo assessment conducted in June 2021 and welcomes the increase in the level of confidence to 47 percent compared to 27 percent in the previous year, for the project to be delivered within the estimated project cost of $66.26 million. Although confidence level remains relatively low, the Group notes with satisfaction that it is expected to increase further as the project moves to the next stages following the award of various contracts, particularly the design contract for the Secretariat building component.

7. The Group also acknowledges with appreciation the coordination and oversight provided by the Global Asset Management Policy Service in the Department of Management Strategy, Policy, and Compliance in ensuring the successful implementation of the project. The Group stresses the importance of close coordination between UNON and the Secretariat in New York, in particular the Global Asset Management Policy Service, to ensure proper oversight and governance in all aspects of the project.

8. The Group of 77 and China believes that close collaboration and coordination with the relevant stakeholders is crucial to the success of the project. The Group welcomes the efforts made in sharing lessons learned and best practices with other United Nations duty stations especially in the implementation of the energy-efficient free cooling technologies for the new primary data centre. The Group encourages the Secretary General to continue to explore further opportunities and to utilize best practices from other United Nations construction projects.

9. The Group recalls that in previous resolutions related to construction, the General Assembly had impressed upon the Secretary-General on the need to use local knowledge and capacity in construction projects. The Secretary General has reported that project management team continued its efforts to include local knowledge and locally manufactured products, such as the design and manufacture of furniture for the outdoor 'workpods' by local artisans. The report further indicates that an agreement with local artisans was put in place to harvest any trees affected by the office blocks A-J replacement project and to create sustainable outdoor and office furniture for use on the complex. The Group continues to emphasize that all efforts should be made to use of locally manufactured or available materials as well as local knowledge, skills and technology.

10. In conclusion, the Group of 77 and China would like to assure you of its readiness to engage constructively in the upcoming informal consultations to conclude this agenda item in a timely fashion.

I thank you Mr. Chair