Excellencies,
Ladies and gentleman,
 
Let me begin by congratulating you once again on the adoption of the landmark resolution to reposition the UN development system.
 
Thank you for your constructive engagement, ambition and perseverance.  You are helping to ensure that our actions match the ambition of the 2030 Agenda for Sustainable Development and make a difference in the lives of people.
 
The Secretary-General and I are deeply committed to translate your resolution into action.
 
And we are determined to maintain the same spirit of transparency and partnership that has marked this process as we implement the mandates you have entrusted to us. 
 
We have been at work since the adoption of the resolution to operationalize its mandates.
 
I am working through the United Nations Sustainable Development Group to move forward in a coordinated, smooth and swift manner.
 
In recent days, we have engaged with UN entities, staff and Resident Coordinators. We have also sent letters to the system and Resident Coordinators, to ensure that the resolution and its mandates are well understood.
 
This early engagement has been very encouraging. The system has embraced the resolution and is unpacking all its elements to operationalize these both at entity and system-wide levels.
 
We also count on Member States to continue to support the overall process of change in your engagement in the Executive Boards of all agencies, funds, programmes, specialized and non-resident entities.
 
As we begin our discussion, let me dive into some of the details of three key action areas:  first, the transition team; second, an update on the implementation plan for the reinvigorated RC system; and third, funding issues. 
 
First, the transition team.
The Secretary-General is establishing a transition team to manage the change process in the Organization in a coordinated manner across all reform streams, with a dedicated and lean capacity for the repositioning of the UN development system.
 
I am very pleased to welcome the head of the UNDS transition team, Mr. Robert Piper.
 
Robert brings a wealth of experience from his work across the UN system.
 
He has served as Resident Coordinator in different contexts and is uniquely positioned to support us moving forward.
 
As we welcome Robert, I would also like to express my deep gratitude to John Hendra and Navid Hanif – our QCPR co-chairs – who have accompanied us in this journey since our first steps in early 2017.
 
John and Navid have played a critical role in supporting our analytical process and consultations around the vision of the Secretary-General. The mandate of the co-chairs expires this month, but our gratitude will remain as we proceed.
 
The UN development system transition team will focus on strategic direction, progress-tracking towards the deliverables requested in the resolution, and ensuring minimal disruption to our work on the ground.
 
It will be a lean team, which will benefit from secondments from the system. It will be fully operational by late August, and active for 18 to 24 months
 
Let me now turn to the second action area – and an immediate priority for the transition team – that is, reinvigorating the Resident Coordinator system. 
 
The RC system is at the heart of the ability of the UN development system to deliver results on the ground and support countries in their efforts to realize the SDGs.
 
We are discussing with the system a first draft of the outline for the implementation plan. We will also be holding a series of briefings and informal conversations with Member States – like the one today – to ensure that there are no surprises when you receive the final draft of the implementation plan by early September.
 
In principle, the plan will outline short term and medium-term actions needed for a smooth transition, with a time horizon of 24 months. It will provide clarity on overall timeless and sequencing of actions, including on immediate actions needed.

• In outlining actions from now to December, the plan will focus on creating the authorizing environment by looking at all administrative, legal and oversight arrangements for the new RC system.
• It will also specify arrangements to transition staff and operational support. In doing so, it will clarify UNDP’s new role in serving the RC system, including which services it will continue to provide – now on a fee-for-service basis.
• The plan will also look into the recalibration of functions and relationships both in the field and at regional and headquarters. This will cover, for example, the provisions to ensure accountability for results from RCs to national counterparts; as well as reporting lines between RC and the SG, UNCT members and RCs.
• Finally, it will outline the start-up financing needs for the new RC system to be operational from day one.
• In looking into longer-term transition measures, the Plan that will specify what changes will be made to RC selection, attraction and training processes, as well as longer-term mechanisms to fully operationalize the hybrid funding model for the RC system.
• This section will also elaborate on the implications for the RC system of the reviews of our regional architecture and multi-country offices; as well as of new models of physical presence.
• Finally, the plan will identify risks and contingency measures needed for a smooth and timed transition. 

In gathering inputs for the implementation plan, we have established a working group comprising UNDP, UN-DOCO and the Department of Management.

• This working group is reviewing all details of the Resident Coordinator system – including human resources, procurement, logistics, legal status – with an emphasis on ensuring business continuity as the role of the functions of Resident Coordinator and UNDP Resident Representative are separated.
• The group is working with the assumption that the core capacities of DOCO and all Resident Coordinators will be transferred to the United Nations Secretariat by January 2019, with the strengthening of the Resident Coordinator Offices to unfold during 2019.

The members of the UNSDG Core Group and the co-Chairs of the UNSDG Strategic Results Group will serve as a sounding board as we explore the best pathways forward. 
 
Throughout the process, we will also be sharing regular updates with you on the various aspects of the reinvigorated system.

Now let me turn to the third action area – funding of the RC system, the Funding Compact and the critical need to secure the necessary resources for the Resident Coordinator system this year.

• The implementation plan will outline details regarding the hybrid model and its innovative proposal of a 1% levy. But we all know that the implementation of this proposal will take time; and the immediate needs will need to be covered through voluntary contributions.
• I cannot overemphasize the importance of front-loading of the trust fund to be up and running by 1 January 2019. Considering the amount to be mobilized in cost-sharing from UNSDG entities – approximately USD 70 million – we would still require about USD 220 million for the first year of operation of the RC system, including the full costs of DOCO, RC offices and the “coordination funds” needed for UNDAFs and other in-country planning documents.
• I appeal to you to contribute generously and without delay. A dedicated Trust Fund is being established as I speak – the details of which will be communicated in a letter to all Member States by the Secretary-General.
• I appeal to all of you to be part of this effort. The RC system belongs to all of you; and returns on this investment will be measured in development results

The RC system is a critical – but not the exclusive – focus of the Funding Compact proposed by the Secretary-General.

• We will be providing you shortly with further information on the scope, timelines and format of the Funding Dialogues that will allow us to flesh out the details around the Funding Compact.
• I am meeting with regional groups to better understand your expectations around this critical piece, so that we can launch the dialogues in the second half of July.
• It is our intention to ensure that the Dialogues conclude by December – to ensure that its outcomes can be endorsed by the ECOSOC at its 2019 Operational Activities Segment. By then, we must have clarity on all mutual accountability measures, indicators and follow-up mechanism for the Funding Compact.

Excellencies,
Ladies and gentleman,
 
We will keep you updated on all other mandates – including the independent reviews of the UN development system regional architecture and of multi country-offices, as the process unfolds.
 
Rest assured that all aspects of the repositioning of the UN development system are being taken extremely seriously. This is, after all, an indivisible package.
 
I am grateful for your support and leadership and will continue to count on you over the course of the months ahead.
 
Transformational change is a complex endeavour; but together we can ensure that it is well-managed and inclusive to ensure smooth transitions and tangible outcomes for people. 
 
In the meantime, I welcome your input and feedback.
 
Thank you.