UNITED NATIONS PROPOSES CAPITAL MASTER PLAN FOR HEADQUARTERS; AGEING LANDMARK COMPLEX TO BE REFURBISHED

Press Release
HQ/602

UNITED NATIONS PROPOSES CAPITAL MASTER PLAN FOR HEADQUARTERS; AGEING LANDMARK COMPLEX TO BE REFURBISHED

NEW YORK, 25 July (Office of Under-Secretary-General for Management) -- The United Nations complex in New York -- a historical landmark structure -- is in dire need of refurbishment if it is to continue to serve the United Nations Member States. That was the conclusion of a thorough review conducted by the Secretariat, which also looked at innovative funding possibilities.

A long-term Capital Master Plan for United Nations Headquarters in New York has been developed, and will be submitted to the General Assembly this fall. A summary of the Plan was presented to representatives of the Member States on 18 July as a preview of the upcoming report. The full Report of the Secretary- General is expected to be available in early August.

The Plan is the result of a detailed study of the landmark complex, mostly constructed from 1949 to 1952. At that time, the United States Government provided an interest-free loan which was repaid by the Member States over a 31- year period. Although the original design and construction were of high quality, many systems and much of the major building equipment are well beyond their useful life. In addition to the effects of sheer age and heavy usage, the buildings are no longer in conformance with New York City fire safety codes, environmental standards, accessibility standards or reasonable modern security requirements.

Equally worrisome to the United Nations is the fact that the Headquarters complex, comprising some 2.7 million square feet on over 17 acres, has never received the fundamental upgrades required to convert a building complex conceived in the energy-innocent 1940s to modern concepts of energy conservation.

The United Nations Under-Secretary-General for Management, Joseph Connor, presented the findings and analysis, which leave the United Nations with no choice but to undertake a major refurbishment programme. The present “reactive” approach of ad hoc repairs, if continued, will cost over the next 25 years an estimated $1,154 million in emergency work and major construction, and an additional $490 million in energy. Despite such significant expenditures, however, after 25 years of reactive repair the buildings and systems would remain without the fundamental upgrades needed to meet codes and standards or drastically reduce energy costs.

A comprehensive 6-year programme of refurbishment called the Capital Master Plan is being proposed instead. Its cost is projected at $964 million, well below that of the reactive approach. Most notably, energy costs will be significantly lower over a 25-year period than under the reactive approach: $326 million versus $490 million.

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The construction work would be phased to allow the United Nations to continue functioning during the six years of refurbishment. Meeting schedules will be juggled, and some staff will be relocated to “swing space” for which the United Nations is considering all possible options -- from rental to new construction.

Although the focus of the Capital Master Plan study is strictly on basic infrastructure and code compliance, it also identifies certain improvements which are long overdue and for which the Plan provides a one-time opportunity for realization. The United Nations is in need of conference space, improvements to the public areas and tour route, and consolidation of the technology service spaces. Given the increased United Nations membership -- the building was designed for 70 Member States and is now utilized by 189 -- as well as the intensified interaction with the public, and the efficiency gains of consolidated technology, those improvements, totaling $74 million, have also been included in the proposal.

As an intergovernmental organization, the United Nations will have to largely rely on its Member States for the required funding to implement the Capital Master Plan. One option would be a special assessment over 6-8 years, that is, a direct cash payment. However, consideration may also be given to spreading the cost over a 25-year period, either through interest-free loans from Member States or commercial borrowing through a “quasi-sovereign” bond issue, or a combination of both.

In the event that the construction cost of the Plan is met by interest-free loans and commercial borrowing on a 50/50 basis, its total cost, including energy, is almost identical to the reactive repair approach, that is, $1.6 billion. The significant difference is that, under the Capital Master Plan, the United Nations Headquarters complex will be completely refurbished.

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