In his latest report to the Security Council on Somalia, he says, "At this stage of progress in the Somali peace process, there will likely be a call for an expanded peace-building role and presence for the United Nations, in order that it may assist the Somali parties in implementing their agreement.

"At the same time, it is clear that any enhanced role for the Organization in Somalia must be incremental, and should be based on the outcome of discussions with the new government."

Col. Abdullahi Yusuf Ahmed was inaugurated last Thursday as the Somali Transitional President.

Mr. Annan commends the efforts of his UN Representative for Somalia, Winston Tubman, the UN Political Office for Somalia, the UN country team, the Somalia Aid Coordination Body, the European Commission, the League of Arab States and others to come up with the peacebuilding framework envisaged by the Council in 2001 and 2004 and expected it to lead to a "rapid assistance package."

He appeals to the international community to fund the package quickly and generously and proposes maintaining the resources provided to the UN Political Office for Somalia for the 2004-2005 period at the current level.

He notes that despite the country's urgent humanitarian needs, only limited funds were donated in response to the 2004 Inter-Agency Consolidated Appeal for Somalia for $118 million, with major donors being Ireland, Italy and Norway.