PC-IX/HC/5

Preparatory Commission for the	PC-IX/HC/5
Organisation for the Prohibition	7 November 1994
of Chemical Weapons	Original: ENGLISH

Ninth Session

(5 - 9 December 1994)

COMMITTEE ON RELATIONS WITH THE HOST COUNTRY

SUMMARY OF MEETINGS DURING THE INTERSESSIONAL PERIOD

5 OCTOBER - 7 NOVEMBER 1994

1. Introduction

1.1 The Committee on Relations with the Host Country held nine meetings during the intersessional period 5 October - 7 November 1994. The Committee continued to use its standing agenda (PC-VI/HC/1). In line with its mandate described in PC-VIII/18 the Committee focused its attention during this intersessional period on issues related to the accommodation of the Commission/OPCW, and worked to the programme set out in PC-VIII/HC/6.

1.2 Mr. A. Hernandez, Deputy Head of the Mexican delegation to the Commission, acted as Chairman on behalf of Ambassador Miguel Marín Bosch, the Chairman of the Commission.

1.3 The Committee agreed not to require interpretation for its meetings, but recognised that this should not be construed as a precedent for further meetings.

1.4 A summary of the meetings of the Committee held in the period 26 - 28 October 1994 was distributed under cover of PC-IX/HC/3. The summary includes a list of reference material on the accommodation of the Commission/OPCW made available to the Committee to assist in its work.

2. Accommodation of the Commission and OPCW

2.1 The Committee addressed each of the following decision elements identified in PC-VIII/HC/6 in its deliberations on this subject item, namely:

- Land price

- Tailor-made building vs. existing buildings

- Analysis of the proposals of the three property developers

- Financial aspects

- Conference facilities

- Car-parking

- Legal aspects

Land price

2.2 The satisfactory resolution of the problem of the terms for use of the Catsheuvel site was seen as a key issue. The Commission, through the Chairman and the Executive Secretary, had raised this issue with the Minister for Foreign Affairs of the Netherlands in their letter of 9 September 1994 (PC-VIII/HC/3). The Committee was advised of the Minister's reply (PC-IX/HC/4) which indicated that a "comprehensive package'' was proposed which would result in a "payment/rent for the building that includes no component for the land". The Committee was also advised that the Chairman, assisted by a group of Friends, was conducting negotiations with the Host Country Representatives with a view to presenting for the approval of the Committee a set of understandings which would constitute the "package" to which the Minister referred. The purpose of the understandings would be to clarify certain aspects of the Netherlands bid and to provide a reasonable degree of predictability to the costs to be borne by the Host Country, in particular for accommodation including that for the OPCW Headquarters, the Laboratory and Equipment Store and for the sessions of the Conference of the States Parties. Both sides intended to complete these negotiations in time to enable the package to be put to the Ninth Session of the Commission for approval.

Tailor-made building vs. existing buildings

2.3 At its meetings held on 26 - 28 October 1994, the Committee was notified that following a follow-up survey to that concluded in July 1994 by Nieboer Gemako (Attachment 2 to PC-VIII/HC/WP.4), no additional and suitable buildings in The Hague had been identified (PC-IX/HC/1). The initial report had identified the building at Bontekoekade 4 as being the most suitable for use by the Commission/OPCW. The Committee, however, recommended to the Commission in its Report that this option not be pursued (PC-VIII/HC/5).

2.4 The Committee agreed that the option of an existing building should no longer be considered as a realistic option.

Analysis of the proposals of the three property developers

2.5 As recorded in PC-VIII/HC/3, the Committee had earlier recognised that the initial offers of the three property developers needed to be comparable to permit a decision to be taken on a preferred option. Subsequently, as called for in paragraph 4.1 of PC-IX/HC/3, the Committee received a further analysis of the three proposals. The analysis (PC-IX/HC/2) concluded that all three designs would meet the Programme of Requirements (POR) set out in PC-VI/A/4 and further concluded that, although changes and adjustments to the three designs will be necessary, this will not impact upon the rental levels, as proposed by the property developers. The Secretariat's building consultant also confirmed that the three designs would satisfy the POR.

2.6 A number of specific Divisions and Branches within the Secretariat also provided the Committee with their views on the functionality of the three proposals for a tailor-made building. The Committee took note of the views expressed by the Secretariat, which are summarised in PC-IX/HC/WP.1.

Financial aspects

2.7 The Committee received an up-dated financial evaluation of the three proposals submitted by Starke Diekstra (Appendix 2 to PC-IX/HC/3), and a letter from IBC dated 3 November 1994 containing an additional financial proposal, as well as a financial evaluation by the Secretariat's building consultant. The Committee noted in the Summary of the Analysis submitted by Starke Diekstra (PC-IX/HC/2) that the offer of Provast and rental of the building on a 15 year term was their recommendation to the Commission as to the best way forward.

2.8 The Committee received a further financial analysis (Attachment 1 to this Report) of the funding options (lease, rental, purchase) of an OPCW tailor-made building. This analysis had been prepared by the independent financial adviser (ING Bank/MBO) which had provided an initial assessment in August 1994 (PC-VIII/HC/4).

2.9 The Committee expressed the opinion that the offers of two property developers, Provast and IBC/ABN-AMRO, could best satisfy the needs of the Organisation. The Committee took note of a letter dated 31 October 1994 from Philipp Holzmann, the parent company of Hillen and Roosen, confirming that in case of contract award to the Provast Consortium, Philipp Holzmann would provide a performance guarantee for the contractual obligations relating to price, date of delivery and quality that Hillen and Roosen will be entering into for the construction of the OPCW Building. The Committee agreed that, subject to the provision by Philipp Holzmann by 17 November 1994 of a draft of such a performance guarantee acceptable to the Commission and to an extension by Provast of the offer period from 1 January 1995 to 1 February 1995, the Provast offer should be viewed as the preferred option.

2.10 The Committee concluded that, whilst retaining the option to purchase the building, for the present the Committee would recommend that the Commission enter into either a preliminary tenancy agreement for the building covering 15 years or a preliminary leasing agreement. The Committee agreed, however, that a final recommendation would be presented to the Commission at its Ninth Session only upon the satisfactory conclusion of negotiations on the land price, conference and parking facilities.

Conference facilities

2.11 As identified in PC-VIII/HC/6, the Committee requested the Host Country to provide details of the arrangements to be made for the First Session of the Conference of the States Parties (CSP). The Committee also recalled the letter dated 9 September 1994 from the Chairman and the Executive Secretary addressed to the Minister for Foreign Affairs of the Netherlands (PC-VIII/HC/3) which sought the assurance of the Host Country as to the continued availability of conference facilities at an affordable cost at the Netherlands Congress Centre in the period beyond the eight-year term of the Netherlands bid.

2.12 The Host Country provided proposals for both the First Session of the CSP (Attachment 2 to this Report) and subsequent sessions, including those sessions beyond the period when they are to be provided under the Netherlands bid (cf. paragraph 6 and Appendices 3 and 4 of PC-IX/HC/3).

2.13 At its meeting on 4 November, the Committee took note of the reply of the Minister for Foreign Affairs (PC-IX/HC/4) and the proposals submitted by the Netherlands delegation to the Committee for holding of the First and subsequent sessions of the CSP. The Committee also received a security survey (Attachment 3 to this Report) on the proposed conference facilities, covering the Staten Hall and the Prins Willem Alexander Hall.

2.14 On the information provided to it, the Committee recognised that it would be feasible for the sessions of the Conference of the States Parties to be held in the Netherlands Congress Centre. The Committee considered, however, that additional financial information, clarification on the availability of the rooms, and further details concerning fit-up of the two proposed conference rooms would need to be supplied before a final decision could be taken. The Committee will continue to pursue these issues energetically with a view to presenting a proposed decision to the Commission at its Ninth Session.

Car-parking

2.15 The Programme of Requirements for the OPCW tailor-made building (PC-VI/A/4) identified the need for 275 car-parking places, of which 110, as identified in the Netherlands bid, were to be provided in the proposals of the three property developers for the new building.

2.16 The Committee was charged with investigating the possibility of renting on a long-term basis from the Netherlands Congress Centre (NCC) the balance of 165 spaces for use by the OPCW in a car-park adjacent to the Catsheuvel site.

2.17 Following discussions by the Chairman with the Director of the NCC and receipt of a formal proposal dated 2 November 1994 and a follow-on letter dated 4 November 1994 (Attachments 4 and 5 to this Report respectively) for the long-term rental of up to 165 car-parking spaces, the Committee agreed that satisfactory financial and security arrangements should be made with the NCC for the rental of the (up to 165) additional car-parking spaces, to ensure their availability to the OPCW at the time of occupation of a new OPCW building at the Catsheuvel site.

2.18 The Committee will continue to pursue these issues energetically with a view to presenting a proposed decision to the Commission at its Ninth Session.

Legal aspects

2.19 The preparation by the Legal Adviser of a draft preliminary tenancy agreement between the Commission and the Host Country as called for in PC-VIII/HC/6 and its consideration by the Committee was not pursued during the period covered by this Report. The Committee agreed that, in the preparation of the draft decision for the OPCW's long-term accommodation, the Committee would need to review the following legal documents:

(a) draft development agreement (including performance guarantees) - developer/OPCW Foundation;

(b) draft of additional performance guarantee to be provided by Philip Holzmann in respect of Hillen and Roosen;

2.20 The Committee will continue to pursue these matters with a view to presenting the necessary documents to the Commission at its Ninth Session.

3. Conclusion - accommodation of the Commission/OPCW

3.1 Whilst considerable progress had been made towards fulfilling the mandate of the Committee, it was not in a position to issue a formal recommendation on long-term accommodation of the OPCW within the deadline required by the practice of providing three weeks' notice for substantive proposals. The Committee considered that there would be serious political and financial implications in further delaying a final decision to the Tenth Session of the Commission in April 1995 and urged early resolution.

3.2 The Committee requested the Chairman to continue to conduct negotiations with the Host Country with the aim of arriving at a mutually agreed set of understandings (cf. paragraph 2.2 above).

4. OPCW Laboratory and Equipment Store

The Committee was unable, during the period covered by this Report, to conclude its work on the rental or lease of the Laboratory at Heulweg 28-30, Rijswijk, due to delays occasioned by the decision of the present owner of the building to put it up for sale. Further, as notified in PC-IX/HC/3, the Committee had been unable to complete the necessary financial and structural surveys required to proceed with a rental or lease option or to consider in detail the purchase option. The Committee agreed to continue working on this issue and to report to the Commission at its Ninth Session.

5. Other matters addressed by the Committee

Car-parking, Laan van Meerdervoort 51.

The Committee noted with appreciation that the four car-parking spaces at Laan van Meerdervoort 70 (cf. PC-VIII/HC/5) for use by delegates to the Commission had now been brought into use. The Committee was advised of on-going discussions between the Secretariat and officials of the Municipality of The Hague aimed at improving the availability to delegates of the initial four spaces allocated to the Secretariat by the authorities.

SECURITY SURVEY:

PROPOSED LONG TERM CONFERENCE FACILITIES FOR THE OPCW

AT THE NETHERLANDS CONGRESS CENTRE

1. Introduction

1.1 As a follow-up to the decision mentioned in document PC-IX/HC/3 dated 28 October 1994, an in-depth security survey of the two options for the provision of long term conference facilities for the OPCW within the Netherlands Congress Centre (NCC) was performed on the 4th of November 1994. The survey was carried out in close cooperation with the Special Protection Service (Dienst Orde en Bewaking) of the Police of the Hague.

1.2 The threat assessment against which the survey was measured and the perceived potential vulnerability of the OPCW led to the production of a risk analysis which was used to set up the provisional security standards for the two options.

1.3 Special attention was given to VIP protection measures and also to the security measures of the two proposed locations, including traffic flows that would be needed.

2. Findings

2.1 Prins Willem Alexander Hall.

A complicating factor is that the outcome of the planned renovations of this hall are not exactly known. After taking into account all relevant security aspects, no reasons were found to believe that provision of adequate security will not be possible. Additional parts of the NCC under and around the Prins Willem Alexander Hall, however, will have to be made available to the OPCW for enabling the enforcement of the necessary security measures.

2.2 Staten Hall.

One of the striking disadvantages of this hall is its location (not in the core of the building and adjacent to the road). This disadvantage can be dealt with, if an area around the hall is declared restricted. Furthermore, the garage under the hall and the Van Gogh Hall (not mentioned in the proposal) have to be under complete control of the OPCW. The layout of the hall, including the seating of special dignatories, has to be in accordance with the overall security plan.

After having taken into account the aforementioned conditions, an adequate security level can be provided.

3. Conclusions

Both options bring their own security problems, but these can most likely be overcome. Close cooperation between the PTS/OPCW security officer, the Special Protection Service of the Police and the NCC management will be necessary from the initial planning phase of the CSP to attain the required level of security.

4. Remark

The pre-conference 'anti-explosives' checking procedures will be rather complicated. Special equipment and trained personnel will be necessary which may have budget implications.

PTS Senior Security Adviser