Concerns about Budget Increases, Flexible Workplace Strategies Aired as Fifth Committee Discusses Status of Geneva Office Renovation
The renovation of the historic Palais des Nations campus, home of the United Nations Office in Geneva, came under scrutiny before the Fifth Committee (Administrative and Budgetary) today, with delegates commenting on financing modalities, transparency and the “smart working” flexible workplace concept as the CHF 836.5 million project — due for completion in 2023 — moved forward.
Clemens Adams, Director of the Office’s Division of Administration, introducing the Secretary‑General’s fourth annual progress report on the Strategic Heritage Plan, said significant progress had been made in the year to 31 August in several areas, including the awarding of a contract to construct a new office annex known as building H.
The same report included an update on project financing, including an interest‑free loan of CHF 400 million from host country Switzerland that could be repaid in part through rental income, he said. The report also discussed, in the context of climate change, the need to future‑proof the 1930s era historical Palais buildings with cooling and ventilation systems.
Switzerland’s representative, noting that his Government had started disbursing its zero‑interest loan, said the Plan’s many benefits — including reduced maintenance and energy costs — were within reach. At the same time, the Plan would improve the well‑being and productivity of everyone who worked in, convened in or visited the Office, while improving access for persons with disabilities.
While considerable progress had been made in securing alternative funding sources to significantly lower Member States’ assessed contributions, he said it was crucially important to agree on the financing modalities for the Plan during the current General Assembly session to reap the wide‑ranging qualitative and financial benefits of the project. “Continuing uncertainty about the financing modalities of the project risks causing delays and additional costs as well as discouraging staff, partners, contractors and potential donors,” he warned.
The delegate of the United States said her country would seek to ensure that resources dedicated to the Plan were transparently and effectively managed, with the project completed within the approved budget and timeline. “My delegation firmly believes for transparency and good governance for a project this size, that a separate account should be established for this project outside of the regular budget,” she stated, adding that any revenue gained from leasing any United Nations properties in Geneva must be applied to the Plan.
On behalf of the “Group of 77” developing countries and China, Ecuador’s representative stressed the importance of sticking to the project’s timeline in order to keep initial project costs from escalating. On the “smart working” concept, a core part of the Plan, she said the Group wanted to understand why it was important when staff occupancy of existing work space at the Geneva Office stood at only 51 per cent.
Her counterpart from Mexico said modernization and appropriate use of flexible workspace and intelligent work systems was important for his delegation. So too were issues surrounding accessibility for those with disabilities, gender equality and greater use of information technology, among others. Lessons learned from similar projects at other locations should be applied to the project, particularly with regard to identified best practices, he added.
Babou Sene, Vice‑Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), said the proposed cooling or ventilation to be installed for the Palais buildings would require an additional cost estimated at CHF 40 or 50 million. He added that the Advisory Committee was not convinced of the necessity of a different name for flexible workplace strategies and expected that implementation of such strategies in building H would proceed without delay within the current budget allocation. It also recommended against the proposed installation of cooling or ventilation for the Palais buildings and the related feasibility study and design work.
The Committee today also took up the Secretary‑General’s report on sanctions monitoring teams, groups and panels, and other entities and mechanisms, which proposed $40.5 million in resources for 13 special political missions in 2018 — an increase of $2.9 million from 2017.
Introducing that report, Bettina Tucci Bartsiotas, Assistant Secretary‑General and Controller of the United Nations, said part of the increase, $1.6 million, related to the Organization for the Prohibition of Chemical Weapons ‑ United Nations Joint Investigative Mechanism, whose mandate expired on 17 November 2017 after it was not renewed by the Security Council.
The remainder of the increase was mainly related to four special political missions, including the Panel of Experts on the Democratic People’s Republic of Korea, she explained. The requirements would be charged against a $1.1 billion provision in the proposed programme budget for biennium 2018‑2019 and did not include resources for the newly‑established Panel of Experts on Mali.
Iran’s delegate expressed concern about the proposed 2018 resources of $2 million for implementation of Security Council resolution 2231 (2015), which endorsed the Joint Comprehensive Plan of Action for Iran’s nuclear programme. He said it seemed that an overflow of human and financial resources had been dedicated to implementing that resolution. The allocation of 11 posts to those efforts “would definitely be interpreted as a waste of scarce resources”, he said, adding that Iran would seek further clarification.
Mr. Sene said the Advisory Committee, through its corresponding report, recommended approval of four P‑4 positions proposed in the Secretary‑General’s report. However, it, recommended against establishing a new position of Political Affairs Officer, as the additional workload could be absorbed by existing staff.
Speaking at the end of the meeting, Michel Tommo Monthe (Cameroon), Fifth Committee Chair, noting delegates would soon be taking up additional items, conveyed a request from facilitators for them to engage actively, with a sense of flexibility and camaraderie, to address issues still under consultations. A sense of urgency was recommended, he said, albeit with caution in order to avoid a “crash” at the end of the current session.
The Fifth Committee will meet again at a date and time to be announced in the Journal.
Strategic Heritage Plan of United Nations Office in Geneva
CLEMENS ADAMS, Director of the Division of Administration of the United Nations Office in Geneva, introducing the fourth annual progress report on that Office’s Strategic Heritage Plan (document A/72/521), said significant progress had been made during the reporting period, including the completion of excavation works, the awarding of a construction contract for the new building H, the issuance of contracts for further detailed design work, the completion of flexible workspace occupancy studies, further development in the design of accessibility facilities, and further refinement of the schedule of work and contracting strategy.
The report included an update on project financing, cost plan and expenditures, including an interest‑free loan of CHF 400 million from the host country, he said. While the available contingency included in the cost plan stood at CHF 70.8 million for the period 2017‑2023 was not ideal, the risk exposure had reduced over time as the design became more certain and contract prices agreed upon. Regarding alternative funding mechanisms that would reduce the overall assessment on Member States for the Plan, he said the Organization had reached an agreement in principle for the long‑term lease of land plots at Villa les Feuillantines that would yield CHF 25.6 million within the next few years. It was proposed that current and projected rental income, as well as potential rental income generated by flexible workplace strategies, be applied to repaying the host country loan.
On transforming the Palais des Nations campus into a fully modern work environment, he said it was essential, in view of changing climate conditions, to include cooling and ventilation as additional requirements in order to future‑proof the renovated premises. An additional CHF 40‑50 million would be required in additional upfront resources, but further study was needed, and in that regard the Secretary‑General was preparing a feasibility study and more detailed funding proposal. Construction of new building H should be completed at the end of 2019. Detailed design, technical design and tender documentation for the renovation of the 1930s historical Palais buildings would be completed in 2018, together with procurement activities needed to select a construction contractor for the renovation of those buildings.
He went on to summarize the key decisions to be taken by the General Assembly, including the scheme and currency of appropriation and related assessment for the Plan, approval of a multi‑year special account for the project, and taking note of the Secretary‑General’s decision to proceed with a “smart working” flexible workplace strategy in new building H. Other decisions would request the Secretary‑General to report on the results of further feasibility and design work for implementing smart working in the historical Palais buildings, approval of a temporary P‑5 position for a Senior Procurement Officer in the Office of Central Support Service in Headquarters, authorization of charging the cost of valorization consultancy services for 2018 to the project, and authorizing the use of current and future rental income to offset Member State appropriations related to repaying the host country loan. Concluding, he emphasized the importance of timely Assembly decisions and to secure financing as the project entered into high‑value construction contracts over multiple‑year periods.
BABOU SENE, Vice‑Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced its related report (A/72/7/Add.25), noting that the Secretary‑General requested an additional position of Senior Procurement Officer (P‑5) in the Office of Central Support Services at Headquarters, to be funded from within the maximum overall cost approved for the project. Considering the tasks involved in the procurement exercise for the renovation phase of the project and the existing capacity within the project team, the Advisory Committee recommended approval of the position for an initial period of one year.
Regarding the Secretary‑General’s proposal to implement a “smart working” flexible workplace at the Geneva Office, he noted that while implementation for building H would occur within the current Strategic Heritage Plan budget, the proposed cooling or ventilation to be installed for the Palais buildings would require an additional cost estimated at CHF 40 or 50 million. The Advisory Committee was not convinced of the necessity of a different name for flexible workplace strategies and expected that implementation of such strategies in building H would proceed without delay within the current budget allocation. It recommended against the proposed installation of cooling or ventilation for the Palais buildings and the related feasibility study and design work.
With respect to valorization consultancy services, the Advisory Committee recommended approval of the proposal to charge those costs to the project, within the overall maximum approved cost, he said. Further, the Advisory Committee was not in a position to evaluate the budgetary impact of the proposal to use income to offset the Member State appropriation related to the repayments of the loan in the absence of data regarding the financial implications of the proposal on the programme budget.
LOURDES PEREIRA SOTOMAYOR (Ecuador), speaking on behalf of the “Group of 77” developing countries and China, noted the changes in governance and oversight of the Strategic Heritage Plan and looked forward to receiving updates on the efficiencies such changes would bring as well as the risk mitigation measures put in place. The Group, noting the progress made in the past year, also looked forward to hearing from the Secretariat on measures undertaken to address slippage in the overall schedule. In doing so, she emphasized the importance of adhering to the project timeline in order to mitigate the escalation of initial project costs. On the smart working concept, she said the Group wanted to understand why it was important when staff occupancy of existing work space stood at only 51 per cent. While taking note of the importance of staff comfort in a well‑ventilated workspace, the project must stay within allocated budget estimates, especially as most Member States faced constraints in meeting increased assessments.
She went on to echo the Advisory Committee’s concerns regarding base project costs, which had increased by 13.4 per cent from CHF 649 million to CHF 736.1 million, and that a decrease in contingencies from CHR 108.47 million to CHF 70.85 million had failed to result in lower overall project costs. The Group would thus seek further information from the Secretariat on how the cost increase would be absorbed within approval resource levels. It also looked forward to considering the scheme and currency of appropriation and assessment for the project, a multi‑year special account and the proposal for valorization income.
JESÚS VELÁZQUEZ CASTILLO (Mexico) said that the United Nations had undertaken a process of change that would require significant adjustments, and in that regard, all parts of the Organization must assume the challenge of ensuring greater efficiency in all areas of work. Mexico recognized the importance of the Plan, which should be pursued in‑line with larger efforts to improve the functioning of the Organization, bearing in mind the importance of safety and security, as well as accessibility. The Plan’s implementation would require efficient coordination among management, with every effort made to stay within the designated timeline and funding set. The modernization and appropriate use of flexible workspace and intelligent work systems was of importance to his delegation, as were issues surrounding accessibility for those with disabilities, gender equality and greater use of information technology, among others. Lessons learned from similar projects at other locations should be applied to the project, particularly with regard to identified best practices.
CHERITH NORMAN CHALET (United States) said that due to its significant resources levels, the United States would seek to ensure that the resources dedicated to the Plan were transparently and effectively managed, and that the project was completed within the approved budget and timeline. Noting that the project involved many components, including governance, risk management, space utilization, and accessibility, she stressed the importance of reducing the financial burden on Member States through alternative financing options and flexible workplace strategies and space efficiency. “My delegation firmly believes for transparency and good governance for a project this size, that a separate account should be established for this project outside of the regular budget,” she stressed. While she appreciated the updates on donations and rental income in the Secretary‑General’s report, any revenue gained from leasing any United Nations properties in Geneva must be applied to the Strategic Heritage Plan and the financing of the project within the approved amount. Regarding flexible workplace, she encouraged the Plan team to continue to identify opportunities to modernize within the existing footprint to ensure a more flexible workplace and increased capacity within the Palais and related buildings.
JÜRG LAUBER (Switzerland) highlighted that his country had started disbursing its zero‑interest loan of CHF 40 million to the project and by the end of next year the Plan would have already reached the mid‑point of its project cycle. “The wide‑ranging benefits of the Strategic Heritage Plan are therefore within reach,” he said, noting that due to significantly lower maintenance and electricity expenses, cost avoidance, the optimization of the work environment and the space utilization as well as through the generation of additional income, the Plan would allow for substantial annual savings for the Organization and Member States. The Plan would also increase the well‑being and productivity of all who worked, met, negotiated or visited the Geneva Office, as outdated infrastructure was completely revamped, barriers to persons with disabilities were eliminated and a modern, safe and secure work environment was created.
He expressed pleasure that the project continued to proceed in accordance with the approved maximum overall costs, timeline, scope and quality targets, although he noted with concern certain modifications to the details of the timeline and the cost of individual project segments. Considerable progress had been made in securing alternative funding sources for the project to significantly lower Member States’ assessed contributions, he said, although he stressed that it was crucially important to agree on the financing modalities for the Plan during the current session to reap the wide‑ranging qualitative and financial benefits of the project. “Continuing uncertainty about the financing modalities of the project risks causing delays and additional costs as well as discouraging staff, partners, contractors and potential donors,” he warned.
Special Political Missions
BETTINA TUCCI BARTSIOTAS, Assistant Secretary‑General and Controller of the United Nations, introduced the report of the Secretary‑General on Thematic cluster II: sanctions monitoring teams, groups and panels, and other entities and mechanisms (document A/72/317/Add.2), and said that the proposed resources for 2018 for the 13 special political missions amounted to $40.5 million, which represented an overall increase of $2.9 million compared to the approved resources for 2017. Part of the increase, $1.6 million, related to the requirements for the Organization for the Prohibition of Chemical Weapons ‑ United Nations Joint Investigative Mechanism, whose mandate was expected to be renewed into 2018 when the report was prepared. However, its mandate expired on 17 November 2017 and was not renewed by the Security Council; therefore related resource requirements for 2018 of $4.8 million would not be required.
The remainder of the increase in resources mainly concerned four special political missions, including; the Panel of Experts on the Democratic People’s Republic of Korea in relation to new tasks mandated by the Security Council and security requirements; the implementation of Security Council resolution 2231 (2015) due to lower vacancy rates applied in 2018 to new positions approved in the previous period, as well as tasks mandated by the Security Council for the former; and the Counter‑Terrorism Committee Executive Directorate, due to new tasks mandated by the Security Council, for which six new posts were proposed. The increased resources were partly offset by reduced resource requirements for six special political missions. The requirements would be charged against the provision of $1.1 billion proposed for special political missions under section 3, Political Affairs of the proposed programme budget for the biennium for 2018‑2019, and did not include the resources required for the newly‑established Panel of Experts on Mali.
Mr. SENE, presenting the Advisory Committee’s corresponding report (document A/72/7/Add.12), said it recommended approval of the five proposed P‑4 positions, including four Legal Officers and one Communication Officer. It recommended against creating a new position of Political Affairs Officer at the P‑3 level, as the additional workload could be absorbed by existing staff. It recommended approval of resources proposed by the Secretary‑General, subject to paragraphs 13 and 16 in its report, and requested that detailed information on reductions arising from its recommendations be provided to the General Assembly.
ABBAS YAZDANI (Iran) said that adequate resources were critical for the efficient, effective discharge of the varied and complex mandates of the special political missions. The level of resources must be commensurate with all mandated programmes. He expressed concern about the proposed 2018 resources of $2 million for implementation of Security Council resolution 2231 (2015). That amount would pay for salaries and common staff costs for the continuation of 11 positions, official travel and other operational and logistical support. Taking into account the nature and scope of the legislative mandates set forth in the resolution as well as the staffing, material and budgetary components, it seemed that an overflow of human and financial resources had been dedicated to implementing the resolution. The workload for implementing the resolution was limited to a few queries about the procurement channel, preparing biannual reports and holding three expert‑level meetings each year. The allocation of 11 posts to those efforts “would definitely be interpreted as a waste of scarce resources”, he said. His delegation would seek further clarification on the operational requirements and would be interested in learning more about the performance information, as well as the justification for the proposed assumption. He would also seek further information about the proposed application of a 5 per cent vacancy rate in 2018, compared with the 30 per cent vacancy rate for the positions approved in 2017, as well as detailed information on the necessary balance of the staffing structure by taking into account equitable geographical representation and ensuring gender balance.