Federal Council dispatch to Parliament on supporting three strategic renovation projects – at the Palais des Nations and the headquarters of the WHO and the ILO

Bern, 24.02.2016 - At its meeting of 24 February 2016, the Federal Council adopted a dispatch to Parliament on granting a loan to fund the renovation of the Palais des Nations – European headquarters and premier conference venue of the United Nations (UN). At the end of 2015, the UN General Assembly gave the green light for a complete renovation of the building which was built in the 1930s, thus marking an important strategic stage in ensuring the future attractiveness of International Geneva. The Federal Council has also asked Parliament to grant loans to fund the reconstruction and renovation of the headquarters of two other key international organisations in Geneva – the World Health Organization (WHO) and the International Labour Organization (ILO). The aim of Switzerland’s host state policy is to strengthen the attractiveness of Switzerland – and Geneva in particular – as one of the foremost centres of global governance. The Swiss Confederation’s financial contribution to these three renovation projects amounts to CHF 438.4 million in loans.

Maintaining International Geneva’s housing stock is one of the core elements of Switzerland’s host state policy. It constitutes one of the six dimensions of the strategy to promote International Geneva, which was developed by the Swiss Confederation and the authorities of the canton and city of Geneva and supported by Parliament on 16 June 2015 (‘Dispatch concerning measures to strengthen Switzerland’s role as host state’).

This policy helps to cement efficient, cost-effective, high-quality multilateral activity and upholds the image that Geneva and Switzerland convey abroad through these buildings. According to the UN, the complete renovation will facilitate the consolidation of its activities in Geneva and generate some CHF 48 million in savings per year.

Formerly the seat of the League of Nations before becoming European headquarters of the UN after the Second World War Two, the Palais des Nations has played a prominent role in the history of modern international relations. Since its construction – mainly between the years of 1929 and 1936 – this imposing building complex has never undergone a full renovation. Its refurbishment will help the United Nations Office at Geneva (UNOG) to operate in a more efficient, cost-effective, environmentally friendly and secure manner. This project will also further underpin the UN’s presence in Switzerland, thereby laying a key strategic foundation for the future of International Geneva.

With a view to supporting the refurbishment of International Geneva’s housing stock and ensuring that three international organisations based in Switzerland (the UN, the WHO and the ILO) have workspaces that reflect their individual needs, the Federal Council approved a dispatch to Parliament – including relevant draft federal decrees – on granting loans to fund construction and renovation projects at these organisations’ respective headquarters. The FDFA’s expenditure ceiling will therefore be increased by CHF 438.4 million. The Genevan authorities will complement this amount with their own funding.

Approval of the guarantee credit covers the Confederation’s share of

- a loan for the renovation of the Palais des Nations (UN) and the construction of a new building to replace the existing office tower of Building E (CHF 292 million)
- a loan for the construction of a new building at the WHO (CHF 76.4 million)
- a loan for the renovation of the ILO headquarters (CHF 70 million)

The renovation of the WHO and ILO buildings will help to strengthen international activities in two fields of key thematic importance for Geneva: health and labour.

The Federal Council wishes to consolidate and develop Switzerland’s role as a host state of international organisations and the foremost centre of global governance. International Geneva acts as a linchpin in promoting Switzerland’s international image, while offering the country a key platform for promoting its interests and values through its foreign policy.

Through the dispatch adopted today, the Federal Council has now asked Parliament to approve these three important strategic loans. The authorities of the canton and city of Geneva will also have to give their approval to these projects in accordance with their own procedures.

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