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Original : English 10Th Ordinary Plenipotentiary Conference 24-25

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Original : English 10Th Ordinary Plenipotentiary Conference 24-25 Original : English 10th Ordinary Plenipotentiary Conference 24-25 June, Victoria Falls, Zimbabwe PAPU/PC/X/2021 – Doc. No.12 1. Subject References/Paragraphs Observations PAPU House Project Appeal Fund 32nd Ordinary Administrative Council Resolution No01/PAPU/AC/XXXII/2013 Resolution No10/PAPU/PC/IX/2015 of the 9th Ordinary Plenipotentiary 2. Decisions Expected Conference Note the progress achieved so far Resolution No03/PAPU/PC- EXTRA/2018 of the 5th Extra- Donate generously towards the realization of ordinary Plenipotentiary the equity cash to be contributed by the Union Conference 1 1. Historical background The PAPU House project has been in the pipeline since the creation of the Union in 1980. The host country of PAPU, Tanzania, allocated land to PAPU for the construction of the headquarters building, in fulfillment of one of the conditions for hosting the Union. It may be recalled that part of the original land allocated to PAPU was erroneously left out when the first certificate of occupancy was issued in 1998. However, due to persistent appeals over the years and the intervention of the then Government of Tanzania led by His Excellency, President John Pombe Magufuli, the original land that was allocated by President Julius Nyerere was restored to PAPU. This generous gift led to the current aggressive efforts aimed at implementing the project. The two plots of land previously located on plots 111 and 113/2 measuring 9448 square metres are now amalgamated and has a single certificate of occupancy assigned with plot number 114. 2. Brief Update on the PAPU House project 2.1 Conclusion of procurement The procurement exercise for the selection of the Main as well as Sub-contractors was concluded in December 2019. Beijing Construction Engineering Group Limited (BCEG) of China, being the lowest financial bidder and having met all the requisite technical qualifications, was awarded the contract as the main contractor for the building. Five other sub-contractors were duly selected and engaged for the following services: i) Security Installation, ii) Electrical and ICT Installation, iii) Air conditioning, and Mechanical Ventilation Installation, iv) Lift Installation and v) Plumbing and Firefighting Installation. 2.2 Foundation laying ceremony The foundation laying ceremony for which all Member States Ministers in charge of postal services were invited, took place during the 40th anniversary celebration of the establishment of the Pan African Postal Union. The president of the United Republic of Tanzania was represented by the then Honourable Minister of Works, Transport and Communication, Engr. Isack Kamwelwe and the Honourable Deputy Minister of Foreign Affairs and East African Cooperation, Dr. Damas Ndumbaro. Both Ministers together with the 2 Secretary General of PAPU, Younouss Djibrine performed the foundation laying ceremony on 18th January 2020, at the site of the 17-storey building located within the Sekei ward of Arusha City. 2.3 Duration of the project The total estimated duration of the 17-storey building with a basement for parking cars is thirty-six (36) months beginning from January 2020. However, Beijing Construction Engineering Group Limited has assured that the project will be completed within thirty (30) months, all things being equal. Therefore the current estimated completion date of the project is 26th June 2022 (exactly 900 working days from the date of handing over the site). The building has reached the 6th floor of the sub-structre in June 2021. 2.4 Financing of the Project The PAPU House project is a joint venture project between the Pan African Postal Union and the United Republic of Tanzania represented by Tanzania Communications Regulatory Authority (TCRA). The ownership of the project stipulates that the contribution by the partners shall be in the ratio of 60% (PAPU) to 40% (TCRA). The funding arrangement requires PAPU to contribute its land and existing building valued at USD 4,186,643.84 and USD 4,000,000.00 as equity cash, while TCRA will provide the 40% equivalent of this amount and guarantee any remaining amount that may be obtained as a loan. The parties are also allowed to provide additional funding for the project to ensure lower debt equity. It is imperative to note that the certificate of occupancy for the amalgamated plot was vigorously followed up and personally delivered to the Secretary General by the Honourable Minister of Communication and Information Technology, Dr. Faustine Ndugulile in March 2021. TCRA has already accepted the full plot and will provide the equivalent equity cash. The two partners met on 18th June 2021, and signed an addendum to the 2014 Joint Venture Agreement taking into account the total value of the amalgamated plot and other related matters. I would like to take this opportunity to appreciate her Excellency Dr. Samia Suluhu Hassan the President of the United Republic of Tanzania for her support towards timely implementation of the project. In the same vein, permit me to recognise all the past Presidents of Tanzania who assisted tremendously in ensuring that the project was kick-started despite numerous obstacles and challenges. 2.5 Previous Launching of the appeal fund During the 40th anniversary celebration of PAPU, an appeal fund was launched to enable the Union to generate and contribute its full equity cash totaling USD 4 million to the project. Prior to the launching the Union was in good financial standing to contribute at least USD 3 million as equity cash from the Reserve 3 Fund of the Union. The remaining USD 1 million was very crucial in achieving the estimated project payback period of the project. Due to low attendance and probably due to lack of preparation from Members the appeal fund generated USD 140,000.00 from the following Organizations and Member States that donated/pledged funds to the project: i. African Union Commission - 100,000.00 - Pledge ii. Burkina Faso - 20,000.00 - Pledge iii. Republic of Mali - 10,000.00 - Paid iv. Republic of Cameroon - 10,000.00 - Pledge The Chairperson of the Plenipotentiary Conference and Honourable Minister of Posts and Telecommunications of Cameroon, Mrs. Minette Libong Li Likeng, circulated an appeal letter to all member States to donate generously towards the realization of the remaining USD 860,000/= only. It is my humble and fervent hope that during this session the remaining equity cash will be attained and surpassed through generous donations from Member States, Associates, Partners and International Development Agencies here present or participating from remote locations. Let all of us rise up to this clarion invitation and announce our various donations while bearing in mind that no amount is too small. Thank you all for your generous donations 4 .
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