Independent review of the United Nations Office for Project Services

The Executive Board

1. Takes note of the final report on the independent review of the United Nations Office for Project Services (UNOPS) (DP/2003/40) and the report on the independent review pertaining to the business model and related issues of the United Nations Office for Project Services - comments of the Executive Director (DP/2003/CRP.19);

2. Expresses concern that, despite the anticipated upturn in revenue towards the end of 2003, present business projections for 2004 fall far short of levels needed to sustain the financial viability of UNOPS, and encourages the Executive Director in his intent to focus attention on further business acquisition, including through analyzing opportunities to build new relationships;

3. Recalls the commitment by the Secretary-General to encourage United Nations entities to work through UNOPS as contained in the document DP/2002/CRP.5;

4. Supports the approach of the Executive Director outlined in document DP/2003/CRP.19 with regard to the immediate steps to be taken on the most pressing issues facing UNOPS today, and welcomes the intention of the Executive Director to implement a number of internal changes immediately;

5. Requests the Executive Director of UNOPS to develop, in consultation with the Executive Board, a full response to the recommendations set out in the report on the independent review (DP/2003/40) for consideration at the first regular session 2004 of the Executive Board;

6. Notes that the key question of long-term sustainability of UNOPS is linked to broader issues, such as vision, mandate and governance, that will need to be addressed by the Executive Board in consultation with UNOPS and all relevant stakeholders, considers that this discussion needs to take place in parallel with the implementation of internal reforms, and requests the Executive Director to facilitate this broader consultation process as soon as possible;

7. Requests the Executive Director to report to the Executive Board at its first regular session 2004 on the strategy for business acquisition and progress achieved in implementing the internal changes; to present a comprehensive timetable, detailed budget, benchmarks for monitoring the progress and modalities for meeting the costs of the change process; as well as to report on the broader consultation process set out in paragraph 6 above.

12 September 2003