The Federal Council approves loans for planning costs related to the construction of two new international organisation buildings in Geneva
Bern, 12.02.2014 - The Federal Council has approved two loans in the amounts of CHF 14 million (WHO) and CHF 5 million (IFRC) for the Foundation for Buildings for International Organisations (FIPOI). The loan applications are to finance the planning of the construction of a new extension for the headquarters of the World Health Organisation (WHO) and the demolition and rebuilding of the International Federation of Red Cross and Red Crescent Societies (IFRC) headquarters in Geneva. The Federal Council will now submit a request to Parliament for the release of these funds within the framework of the supplement to the 2014 budget.
It has been known for some time that the WHO and IFRC buildings are in urgent need of renovation and no longer meet the organisations' space and energy requirements. Furthermore, in view of growing international competition, the repair and maintenance of the real estate infrastructure of international Geneva is particularly important. As set out in the Foreign policy strategy 2012-2015 of the Confederation, the long-term promotion of "international Geneva" and the continual improvement of the framework conditions for international organisations form a cornerstone of Switzerland's commitment.
The granting of a CHF 14 million interest-free loan to the WHO ensures funding for the planning work for the organisation's headquarters in Geneva. Building work on the extension building is expected to begin, subject to parliamentary approval, in early 2017. To finance the total costs of the new buildings, another loan estimated at CHF 140 million is expected to be made available to FIPOI at a later date. Once the construction of the new extension building is completed, the WHO will renovate its existing main building. The organisation will bear the costs of this renovation. The new extension building will provide the WHO with 1,100 new offices.
The IFRC also has a pressing need for more office space and an energy-efficient building. According to the Federal Council's decision, it is in the interests of international Geneva and thus also of Switzerland that this need be met through the demolition and reconstruction of the existing building. The total costs of the project (including the rental of provisional premises) are estimated at CHF 50 million, including a CHF 5 million loan for planning work. The total loan will be interest free and repayable over a period of 50 years. To this end and upon completion of the planning work, the Federal Council will issue a dispatch for the approval of the total loan. Construction work on the new extended building is scheduled to begin in mid-2016 and to be completed in 2019 to coincide with the 100th anniversary of the IFRC.
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