Identifier
Created
Classification
Origin
07USUNNEWYORK514
2007-06-25 15:41:00
UNCLASSIFIED
USUN New York
Cable title:
BOARD OF AUDITORS REPORT ON STATUS OF UN CAPITAL
how-toVZCZCXYZ0016 PP RUEHWEB DE RUCNDT #0514 1761541 ZNR UUUUU ZZH P 251541Z JUN 07 FM USMISSION USUN NEW YORK TO SECSTATE WASHDC PRIORITY 2134
UNCLAS USUN NEW YORK 000514
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: AORC KUNR UNGA
SUBJECT: BOARD OF AUDITORS REPORT ON STATUS OF UN CAPITAL
MASTER PLAN: RISING COSTS FORESEEN
UNCLAS USUN NEW YORK 000514
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: AORC KUNR UNGA
SUBJECT: BOARD OF AUDITORS REPORT ON STATUS OF UN CAPITAL
MASTER PLAN: RISING COSTS FORESEEN
1. A well placed UN official shared with USUN M&R Ambassador
Wallace a copy of a soon to be released report by the UN
Board of Auditors (BOA) on the US $1.9 billion Capital Master
Plan project. The report, expected to be released in two
weeks, states that the project has been delayed by nearly a
year.
2. The BOA states that a range of events explain the delay,
such as the time taken by the GA to reach a decision on the
project, the addition of new options to the project that
increased its complexity, an inadequate planning schedule,
and the vacancy of key positions within the CMP office,
including the vacant Executive Director position, that has
gone unfilled since June 2006. Such delays and changes have
resulted in a projected cost increase of $95 to $105 million
compared to the budget approved by the GA late last year. The
report states that other cost increases identified during the
design phase have reached $53 million putting the overall
estimated overrun at $148 to $158 million. The BOA notes that
these estimates "would be subject to further revision based
on the evolving schedule of work." As of December 2006, the
General Assembly had approved a cost ceiling of $1.9 billion
and completion of the project in 2014. The BOA report
concludes that delays and changes in the project have raised
the cost of the CMP project by as much as an additional $158
million above the GA approved budget of $1.9 billion.
3. The BOA made several recommendations to place the project
on a faster track including: the establishment of an advisory
board to advise the Secretary General on financial matters;
expediting the recruitment of an executive director,
expediting the hiring of staff for the CMP office; and
expediting the undertaking of key geotechnical and
exploratory surveys.
4. The USUN M&R section has continued to press the
Secretariat to expeditiously hire an executive director and
SIPDIS
to announce the selection of a construction manager.
Ambassador Mark Wallace has sent three letters since January
to Under Secretary General for Management Alicia Barcena to
request information on the CMP project and he has personally
demarched her and other Secretariat officials in an attempt
to spur action in these areas. The last letter asking for a
status report was sent on June 7, 2007.
5. It is uncertain if the CMP project will begin in early
2008 given the key vacancies in the CMP office. Conversations
with senior UN officials have also indicated that Secretary
General Ban may be re-considering the timeline and scope of
the project, which could further delay the start of the
current project and add increased costs.
KHALILZAD
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: AORC KUNR UNGA
SUBJECT: BOARD OF AUDITORS REPORT ON STATUS OF UN CAPITAL
MASTER PLAN: RISING COSTS FORESEEN
1. A well placed UN official shared with USUN M&R Ambassador
Wallace a copy of a soon to be released report by the UN
Board of Auditors (BOA) on the US $1.9 billion Capital Master
Plan project. The report, expected to be released in two
weeks, states that the project has been delayed by nearly a
year.
2. The BOA states that a range of events explain the delay,
such as the time taken by the GA to reach a decision on the
project, the addition of new options to the project that
increased its complexity, an inadequate planning schedule,
and the vacancy of key positions within the CMP office,
including the vacant Executive Director position, that has
gone unfilled since June 2006. Such delays and changes have
resulted in a projected cost increase of $95 to $105 million
compared to the budget approved by the GA late last year. The
report states that other cost increases identified during the
design phase have reached $53 million putting the overall
estimated overrun at $148 to $158 million. The BOA notes that
these estimates "would be subject to further revision based
on the evolving schedule of work." As of December 2006, the
General Assembly had approved a cost ceiling of $1.9 billion
and completion of the project in 2014. The BOA report
concludes that delays and changes in the project have raised
the cost of the CMP project by as much as an additional $158
million above the GA approved budget of $1.9 billion.
3. The BOA made several recommendations to place the project
on a faster track including: the establishment of an advisory
board to advise the Secretary General on financial matters;
expediting the recruitment of an executive director,
expediting the hiring of staff for the CMP office; and
expediting the undertaking of key geotechnical and
exploratory surveys.
4. The USUN M&R section has continued to press the
Secretariat to expeditiously hire an executive director and
SIPDIS
to announce the selection of a construction manager.
Ambassador Mark Wallace has sent three letters since January
to Under Secretary General for Management Alicia Barcena to
request information on the CMP project and he has personally
demarched her and other Secretariat officials in an attempt
to spur action in these areas. The last letter asking for a
status report was sent on June 7, 2007.
5. It is uncertain if the CMP project will begin in early
2008 given the key vacancies in the CMP office. Conversations
with senior UN officials have also indicated that Secretary
General Ban may be re-considering the timeline and scope of
the project, which could further delay the start of the
current project and add increased costs.
KHALILZAD