Capital Master Plan –
Renovation of UN Headquarters Moves Ahead
By Pedro Bujalance-Andrés
The UN Headquarters in New York will be almost 60 years old in 2009. Outdated in terms of security as well as environmental systems, the United Nations facilities are in need of renovation.
In 2000, then Secretary-General Kofi Annan proposed to the UN General Assembly the implementation of the Capital Master Plan (CMP) for the refurbishment of the complex. The plan encompassed the Headquarters’ infrastructure and basements, the General Assembly and Conference buildings, the Secretariat and South Annex buildings, the Dag Hammarskjöld Library (DHL), security systems and the exterior curtain walls of all buildings. On 10 December 2007, the General Assembly approved the so-called “accelerated Strategy IV” and an appropriation of $992.8 million, in order for all renovation works to be completed by 2013.
An Accelerated Strategy On 11 November 2005, Mr. Annan proposed four strategies to implement the plan. However, due to delays in implementation, the accelerated Strategy IV was finally recommended by the CMP Office, which involves the design and implementation of refurbishment over a five-year period, in an attempt to catch up with the schedule and counterbalance the increasing construction costs. On 21 December 2006, the General Assembly approved an overall budget of approximately $1.88 billion for the CMP.
During a press conference held at UN Heaquarters on 2 November 2007, CMP Executive Director Michael Adlerstein advocated that the United Nations approve the accelerated Strategy IV, which lowers the risk of an unanticipated escalation of construction costs due to inflation, diminishes the impact on UN activities, prevents the risks of accidents and “lowers the risk of UN staff impacts on the cost of construction”. One of the main ideas behind this strategy, he said, was “value engineering”, a concept that implies identifying cost-savings “without compromising the final product”. Mr. Adlerstein also pointed out that the construction of a temporary conference building would start in May 2008. Some 2,600 staff members—more than the 1,466 previously estimated by the UN Advisory Committee on Administrative and Budgetary Questions (ACABQ)—would have to move out of the UN premises due to renovations, while 2,200 would stay in the UN compound.
Some Member States, during a meeting on the CMP of the Fifth Committee (Administrative and Budgetary) on 24 October 2007, expressed concern about value engineering. The Republic of Korea stated that cost-savings should not be pursued at the risk of adversely affecting security, quality, functionality, safety, energy efficiency or environmental sustainability. The United Republic Tanzania emphasized the importance of fairness in competitive bidding for firms, and called the awarded contract “experimental”, doubting its terms and conditions. During the meeting, Mr. Adlerstein replied that his Office would ensure that opportunities for the purchase of materials and services be extended to developing countries.
Historical background of the CMP In August 2002, Secretary-General Annan proposed two different approaches for consideration by the General Assembly, which had final approval on the CMP funding. The first involved vacating as much of the buildings as possible and undertaking the refurbishment swiftly. The second contemplated the refurbishment in smaller increments, relocating the staff and functions as needed, so that renovation would be completed a few floors at a time. It was proposed that October 2004 be the start date, with an overall duration of five years.
New York: The buildings on UN Headquarters complex will receive their first major renovation since they were constructed in the early 1950's. A window washer cleans the Secreteriat building with the General Assembly Hall under construction in the background. Credit: UN Photo
In February 2003, Mr. Annan appointed Toshiyuki Niwa as Executive Director to lead the CMP project. However, by the end of 2004, the preliminary phases of the construction had not yet been undertaken, although most of the studies were completed. In November 2005, the Secretary-General proposed four different strategies for the project, which ranged from performing the construction work in a single phase to renovating the complex in several phases. Finally, the General Assembly approved the renovation works for the period 2006-2014. In November 2006, ACABQ recommended Strategy IV for the implementation of the CMP. A comparison between the budget approved in December 2006 and the financial situation in February 2007 revealed a cost increase of about $148 million to $158.1 million over the amount already budgeted for the project. In addition, a comparison of schedules between June 2006 and February 2007 revealed critical delays, which led to the deferral of renovation works on the Secretariat and the General Assembly buildings to January and May 2009, respectively. Mr. Niwa resigned as Executive Director of the CMP in February 2007.
In July 2007, UN Secretary-General Ban Ki-moon appointed Michael Adlerstein as the new Executive Director of the CMP. The fifth annual report on the implementation of the CMP, issued in September, pointed out that benefits would accrue if renovation phases were expedited. The General Assembly and conference functions would remain in the UN compound in temporary facilities—a temporary conference building is expected to be completed on the site by October 2009. The off-site office swing space (temporary space used while renovations are implemented) involved a lease for office space located a few blocks away from UN Headquarters to house 750 staff members; an expected lease for office space in Long Island City for the Information Technology Services; and an additional location in Long Island City to accommodate the DHL Library collection and staff, as the Library building would be used as an additional swing space.
As of November 2007, estimates revealed an increase of $219.6 million over the approved budget due to a slippage of the schedule, the acceleration of rents for commercial office space and an increase of construction estimates. To date, 12 Member States have chosen to contribute to the CMP, with a one-time payment, and 180 have selected multi-year assessments over five years.
Approval of the accelerated strategy The contract for construction management was awarded to Skanska USA Building Inc. in October 2007. Under the accelerated strategy, the entire project would be completed within five years, so that construction costs ($195.4 million), as well as the swing space cost estimates, would be reduced. This led ACABQ to recommend on 18 October the approval of the accelerated strategy and the appropriation of $992.8 million for the biennium 2008–2009 budget. However, some Member States expressed concerns about the project. During the 24 October meeting of the Fifth Committee, Pakistan stated that “we need assurances that, this time, the project will go through and not collapse”.
Briefing the Assembly on 21 November, Secretary-General Ban Ki-moon expressed his gratitude to Member States for their positive reaction to his proposal for a revised strategy, adding that the accelerated Strategy IV “will mean that the disruption to the Secretariat will last only three years, instead of six, and the conference buildings will be done in two stages rather than three”. In an address to the World Tourism Organization in Madrid on 5 June 2007, Mr. Ban announced that, with this environmentally friendly strategy, the UN premises will “eventually become a globally acclaimed model of efficient use of energy and resources”. The refurbishment will also help to pursue one of the UN Millennium Development Goals established in 2000—to ensure environmental sustainability. “We are already moving towards making our Headquarters in New York climate-neutral and environmentally sustainable.”
