UNITED NATIONS	HS
	Commission on Human Settlements	Distr. GENERAL HS/C/17/L.1/Add.6 8 May 1999 ORIGINAL: ENGLISH

1. Committee II considered agenda items 9 and 10 jointly at its 1st and 2nd meetings on 7 May 1999. In its consideration of agenda item 9, it had before it the following documents:

1. Work programme of the United Nations Centre for Human Settlements (Habitat) for the biennium 2000-2001: report of the Executive Director (HS/C/17/8); and
2. Draft work programmes of the regional commissions in the field of human settlements for the biennium 2000-2001: note by the secretariat (HS/C/17/CRP.1).

1. Proposed budget of the United Nations Habitat and Human Settlements Foundation for the biennium 2000-2001: report of the Executive Director (HS/C/17/9);
2. Report of the Advisory Committee on Administrative and Budgetary Questions: note by the secretariat (HS/C/17/9/Add.1);
3. Financial matters: Use of extrabudgetary resources of the United Nations Centre for Human Settlements (Habitat) in the 1998-1999 period: report of the Executive Director (HS/C/17/9/Add.2);
4. United Nations Habitat and Human Settlements Foundation: Financial report and audited financial statements for the biennium ended 31 December 1997 and report of the Board of Auditors: note by the secretariat (HS/C/17/CRP.2); and
5. Status of voluntary contributions to the United Nations Habitat and Human Settlements Foundation as at 1 March 1999: note by the secretariat (HS/C/17/INF/5).

4. He said, in addition, that the revitalization process had led to a new strategic focus which centred around two global campaigns, on security of tenure and on urban governance, and which required the Centre to adopt the style and profile of a global advocacy agency. The reduction of urban poverty would be a key element in measuring the impact of the two campaigns.

5. He informed the Committee that, following the established cycle of preparation of the medium-term plans, UNCHS (Habitat) had been requested to initiate the preparation of its medium-term plan for the period 2002-2005. That process would begin immediately after the end of the seventeenth session of the Commission and would be based on the same strategic vision.

6. Concerning the content of the draft work programme, he said that its overall substantive focus was on addressing problems of urbanization, including its impact on rural settlements. The proposed work programme was divided into two subprogrammes one on adequate shelter for all and one on sustainable urban development", reflecting the two themes of Habitat II and the Habitat Agenda. Furthermore, the draft work programme was different from previous work programmes in that it was a flexible, indicative framework for programme delivery; it was results-oriented, with clear expected results and performance indicators; it had a much clearer strategic focus, concentrating on activities likely to have maximum catalytic impact in increasing access to shelter and improving urban governance; in keeping with the spirit of Habitat II, the implementation of the work programme would require a higher level of partnership and network-building than ever before; and it was closely linked to the budget, since the work programme and the budget represented two sides of the same coin.

7. With regard to the proposed budget, he said that, for the first time, the Centre had adopted the harmonized budget format, which gave an integrated presentation of all sources of funds available for programme implementation, including regular budget, technical cooperation funds and the Foundation resources. Through increased fund-raising efforts, a very restricted expenditure policy and improved financial management, the Centre had been able to reverse the negative balance of the past and had been able to report a modest positive fund balance at the mid-point of the 1998-1999 biennium.

8. He reported that the proposed budget of the Foundation had been examined by ACABQ, where it had been well received. The Centre acknowledged the recommendations of ACABQ for further improvement of the budget presentation.

9. He also informed the Committee of a recent decision by the Controller to write off the debt of $3.3 million concerning the advance of the Central Emergency Revolving Fund to UNCHS (Habitat) with regard to the reconstruction on housing and infrastructure in southern Lebanon. With regard to the $1.1 million debt to UNEP, he said that he would refer the matter to the Bureau of the Governing Council of UNEP.

10. In conclusion, he briefly outlined the main contents of the budget-related documents before the Committee and ended his introduction with a plea to the Committee for a broadening of the donor base and with a recommendation for the approval of the work programme and budget for the biennium 2000-2001 and the revised budget estimates for 1998-1999.

11. Several delegations supported the Centre's new strategic vision, welcomed the narrower focus of the work programme and its restructuring to two subprogrammes only, and expressed appreciation for the proposed work programme's flexibility and its results-oriented approach and for the harmonized work programme and budget preparation methodology used.

12. One delegation wished to know how projects executed through funding from UNDP and other United Nations organizations would be integrated into the Centre's work programme.

13. Some delegations, while accepting for the time being the two campaigns on security of tenure and urban governance proposed in the work programme, hoped that other important themes in the Habitat Agenda would not be forgotten and that the traditional areas in which the Centre had always been strong would not be abandoned.

14. One delegation considered it important for the Centre to indicate which programmes were meant to be short-term and which were meant to be long-term, as that would help in improving programme performance assessment.

15. While expressing appreciation for the Acting Executive Director's introductory remarks to the effect that rural-urban linkages would be an important area for the Centre's work, several delegations questioned the adoption by the Centre of the name "City Agency of the United Nations" and considered that rural settlements should be highlighted in the Centre's work programme.

16. In that connection, the representative of the secretariat reiterated the position outlined by the Acting Executive Director, whereby the Centre would also devote significant time and resources to the impact of urbanization on rural areas, to dealing with the ecological footprints of cities on their rural hinterlands, as well as to understanding and strengthening rural-urban synergies in general.

17. Some delegations asked for precise details regarding the implementation of the work programme, including when the work programme would be elaborated and how suggestions by Governments would be taken into account. In response, the representative of the secretariat explained that the current level of detail was generally adequate in that it met the requirements of the programme planning guidelines issued by United Nations Headquarters and that implementation of the work programme would be carried out in consultation with Governments.

18. One delegations voiced concern about the proposed advocacy approach, which it saw as moving the Centre away from its original mandate of capacity-building and technical assistance. In that connection, concern was expressed that, in taking-up issues that might be contentious and sensitive in the proposed global campaigns, the Centre might become politicized. In response, the representative of the secretariat explained that advocacy had to be understood as the application of concerted effort by the Centre to convince Governments and other partners to adopt and implement generally accepted human settlement norms, standards, policies and legal frameworks.

19. Another delegation considered that there was a need to place greater emphasis on sustainable development of human settlements, including those located in areas prone to natural or environmental disasters, and cited a resolution on the subject adopted by the Commission at its sixteenth session.

20. A number of delegations questioned the intention to use the adoption of the World Charter of Local Self-Government by the United Nations General Assembly as an indicator for measuring the performance of the Centre in the area of participatory urban governance, and pointed out that such a course would suggest that the Centre was working for a certain outcome when, in fact, an outcome of such a kind ought to emerge from intergovernmental negotiations. In response the representative of the secretariat said that there was a need to revise the indicator in a way which would show that the work of the Centre would stop at the point of submitting a draft of the Charter to the General Assembly. That explanation failed to satisfy one delegation.

21. Several delegations commended the Centre on its revised harmonized presentation of the budget document and supported the findings of the ACABQ report. A number of delegations proposed that, in future, the Centre should also adopt a results-based budget approach.

22. There was general consensus on the need to broaden the donor base and to request donors to pay their pledges as early as possible. A number of delegations recommended that donor contributions should not be earmarked.

23. The delegation of Egypt announced a pledge of $6,000 to the Foundation for 1999 and encouraged other developing countries to do the same.

24. Some delegations sought clarification concerning the basis for what they considered to be optimistic income projections, and concerning the balance between general-purpose and special-purpose income. Some delegations requested more information on the contribution of the Foundation, and of UNCHS (Habitat) as a whole, to the United Nations Office at Nairobi. One delegation sought clarification on the difference between the income projection for the biennium 2000-2001 and the proposed budget, which exceeded the projected income.

25. The representative of the secretariat explained that the projected balance between special-purpose and general-purpose contributions had changed, owing to the completion of a long-term programme funded from the special purpose contribution from one of the Centre's major donors. For that reason, a conservative estimate had been given for the special purpose contributions in the biennium 2000-2001. On the other hand, a careful review of the pledges and other income, and the expectation of renewed donor confidence as a result of the recently completed revitalization process of UNCHS (Habitat), had led to the projected increase in general-purpose contributions.

26. The representative of the secretariat further explained that the budget for the biennium 2000-2001 exceeded the income because the budget also included part of the carry-over funds from the current biennium. With regard to the contribution to the United Nations Office at Nairobi, the secretariat advised the Committee that for the biennium 2000-2001 UNCHS (Habitat) would contribute $1.85 million to the United Nations Office at Nairobi, of which $400,000 would be paid out of the Foundation general-purpose funds and $336,000 out of the Foundation special-purpose funds.

27. Several delegations recommended that the Commission approve a recommendation to the General Assembly to write off the Habitat II debt. One delegation reserved its position on that issue.

28. A number of delegations emphasized the need for resolutions of the Commission to include a cost estimate and proposal for funding.

(to be completed)