ARUSHA - The construction of the new East African Community headquarters may be affected by limitation of funds from partner states, a senior EAC official has revealed.

The EAC Senior Estates Management Officer, Phil Makini Klerruu, made the remarks on Thursday when former German President, Dr. Horst Koehler, toured the construction site in Arusha, Tanzania.

Koehler was accompanied by the EAC Secretary General Dr. Richard Sezibera, and his deputies; Dr. Julius Tangus Rotich (Finance and Administration) and Jean Claude Nsengiyumva (Productive and Social Sectors).

Klerruu pointed out that before the construction contract was awarded, several items worth €3m, including furniture and furnishing of the building had to be omitted adding that their funds were transferred to construction works, due to a budgetary deficit.

"Efforts to source for more funds from partner states budget are on going,” he said.

"However, given the fact that the partner states’ national budgets are currently under consideration; and the limitation of resources that all partner states are experiencing, we are not certain yet as to when the required funds will be availed”.

Other omitted items include; rehabilitation of two historic buildings (forming part of the project), fencing the complex, and purchasing some ICT and kitchen equipment for the restaurant.

He cautioned that it was important that all omitted works are completed while the contractors are still on site, to avoid extra costs and avoid delays.

"This therefore implies that the final completion and commissioning of the project depends on the availability in time of the said funds,” Klerruu said.

Once complete, the headquarters will save the EAC US$500,000 rent it pays annually for its offices at the Arusha International Conference Centre (AICC).

The new EAC headquarters is funded by the German government through a grant worth €14 Million.

So far, 63 percent of the construction work is complete. The target date for completion is August 30 2011.

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