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					                      UNITED
                      NATIONS                                                                                         HSP
                                                                                                   HSP/GC/20/9
                                                                                                   Distr. General
                      Governing Council                                                            14 February 2005
                      of the United Nations Human
UN-Habitat                                                                                         Original: English
                      Settlements Programme



   Twentieth session
   Nairobi, 4–8 April 2005
   Item 9 of the provisional agenda∗
   Work programme of UN-Habitat for the 2006–2007 biennium and budget of the United Nations Habitat and
   Human Settlements Foundation for the 2006–2007 biennium


                   Proposed work programme and budget for 2006–2007
                   Report of the Executive Director


       Summary

               The present document provides the proposed integrated work programme and budget of the United
         Nations Habitat and Human Settlements Foundation for the biennium 2006–2007, in the context of the
         overall financial framework of the United Nations Human Settlements Programme (UN-Habitat). The
         budget is based on estimations of expected voluntary contributions to the general and special purpose funds,
         as well as the level of expenditures required to supplement the United Nations regular budget and technical
         cooperation resources in order to implement the UN-Habitat work programme for the biennium and to
         provide required programme support.

               The Executive Director recommends that the Governing Council of the United Nations Human
         Settlements Programme approve the work programme and budget of the United Nations Habitat and
         Human Settlements Foundation for the biennium 2006–2007, as proposed herein.




             ∗
                   HSC/GC.20/1.




   K0580526      210305


       For reasons of economy, this document is printed in a limited number. Delegates are kindly requested to bring their copies to
       meetings and not to request additional copies. This document is printed on environment friendly paper.
HSP/GC/20/9


Contents

                                                                                                                                                                 Page
        Introduction .................................................................................................................................................... 4
        Implementation of the recommendations made by the Advisory Committee on Administrative and
        Budgetary Questions for the biennium 2002–2003.......................................................................................... 5

Part one: Executive summary................................................................................................................................. 6

I.      Programme overview ....................................................................................................................................... 6
II.     Financial framework ........................................................................................................................................ 6

Part two: Resource plan.......................................................................................................................................... 9

III.    Revised resource plan for 2004–2005 .............................................................................................................. 9
IV.     Proposed resource plan for 2006–2007 .......................................................................................................... 10
        A. Overall financial framework................................................................................................................... 10
        B. United Nations Habitat and Human Settlements Foundation proposed budget for the
            biennium 2006–2007 .............................................................................................................................. 18

Part three : Work programme ............................................................................................................................. 25

V.      Overview     .................................................................................................................................................. 25
VI.     Policy-making organs..................................................................................................................................... 27
VII.    Executive direction and management ............................................................................................................ 27
VIII.   Programme of work ....................................................................................................................................... 33
        A. Subprogramme 1: Shelter and sustainable human settlements development.......................................... 33
        B. Subprogramme 2: Monitoring the Habitat Agenda................................................................................. 41
        C. Subprogramme 3: Regional and technical cooperation .......................................................................... 47
        D. Subprogramme 4: Human settlements financing .................................................................................... 52
        E. Programme support................................................................................................................................. 56

Annexes

I.      Legislative mandate ....................................................................................................................................... 60
II.     Organizational structure and post distribution for the biennium 2006–2007 ................................................. 62
III.    Terminology .................................................................................................................................................. 63
IV.     Assumptions and methodology ...................................................................................................................... 65

Tables

1.         Projected income for the bienniums 2002–2003, 2004–2005 and 2006–2007.............................................7
2.         Proposed expenditure for the bienniums 2002–2003, 2004–2005 and 2006–2007......................................7
3.         Consolidated resource plan: estimated 2004–2005, revised 2004–2005 and proposed 2006–2007.............8
4.         United Nations Human Settlements Programme (UN-Habitat) consolidated budget estimates
           by expenditure category and source of fund budget for the biennium 2006–2007 ....................................12
5.         Estimated programme resources by source of funds and subprogramme...................................................13
6.         UN-Habitat - Estimated distribution of posts by source of funds ..............................................................14
7.         UN-Habitat Estimated distribution of posts by source of funds and programme ......................................15
8.         United Nations Habitat and Human Settlements Foundation Budget for the biennium 2006–2007 ..........19
9.         United Nations Habitat and Human Settlements Foundation: general purpose funds only budget
           for the biennium 2006–2007 ......................................................................................................................21
10.        United Nations Habitat and Human Settlements Foundation (special account for programme
           support) budget for the biennium 2006–2007 ............................................................................................23
11.        Overall staffing table: (United Nations Habitat and Human Settlements Foundation) general and
           special purpose funds for the biennium 2004–2005 and 2006–2007 ........................................................24
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12.   Summary budget estimates by expenditure category and source of funds, budget for the biennium
      2006–2007 – policy-making organs ..........................................................................................................27
13.   Expected accomplishments and indicators of achievement........................................................................28
14.   Summary budget estimates by expenditure category and source of funds, budget for the biennium
      2006–2007: Office of Executive Management and Administration...........................................................32
15    Expected accomplishments and indicators of achievement........................................................................33
16.   Summary budget estimates by expenditure category and source of funds, budget for the
      biennium 2006–2007: Subprogramme 1: Shelter and sustainable human settlements development ........ 40
17.   Expected accomplishments and indicators of achievement for the biennium ............................................ 41
18.   Summary budget estimates by expenditure category and source of funds, budget for the
      biennium 2006–2007: Subprogramme 2: Monitoring the Habitat Agenda ................................................ 45
19.   Expected accomplishments and indicators of achievement for the biennium ............................................ 47
20.   Summary budget estimates by expenditure category and source of funds, budget for the
      biennium 2004–2005: Subprogramme 3: Regional and technical cooperation .......................................... 50
21.   Expected accomplishments and indicators and achievements for the biennium ........................................ 52
22.   Summary budget estimates by expenditure category and source of funds, budget for the
      biennium 2006–2007 (in thousands of US dollars): Subprogramme 4: Human settlements financing...... 56
23.   Expected accomplishments and indicators of achievement........................................................................ 56
24.   Summary budget estimates by expenditure category and source of funds, budget for the
      biennium 2006–2007: Programme Support Division ................................................................................ 58

Figures

1.    Use of total resources 2006–2007 ............................................................................................................... 9
2.    Distribution of programme resources 2006–2007 ..................................................................................... 11
3.    Distribution of Professional staff posts by source of funds 2006–2007 .................................................... 14
4.    Summary of General Purpose and Special Purpose Contributions (1994–2004) ...................................... 17
5.    United Nations Habitat and Human Settlements Foundation (use of resources by expenditure
      category, 2006–2007) ................................................................................................................................ 20




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HSP/GC/20/9



              Introduction
              1.      In accordance with financial rule 303.1 of the Foundation, the Executive Director of UN-Habitat is
              submitting herewith the proposed work programme and budget of the United Nations Habitat and Human
              Settlements Foundation for the biennium 2006–2007, covering anticipated programme and support
              expenditures.
              2.     In accordance with financial rule 303.5 of the Foundation, the proposal has been submitted to the
              Advisory Committee on Administrative and Budgetary Questions (ACABQ) for its review and comments.
              The report of the Advisory Committee is contained in document HSP/GC/20/9/Add.1.
              3.      The work programme and budget document has been prepared using a prioritized and integrated
              format as requested by the Governing Council in its resolution 19/2. In developing the new format,
              UN-Habitat has incorporated the detailed comments of the ACABQ in its report on the proposed budget for
              2004–2005 (HSP/GC/19/9/Add.1). UN-Habitat also had the benefit of discussing the draft proposals with the
              Committee of Permanent Representatives, whose valuable comments have been reflected in this document.
              4.      The integrated work programme and budget proposal has been prepared in line with the proposed
              Strategic Framework for the period 2006–2007 (A/59/6 Prog.12), presently before the General Assembly.
              5.      The recommendations of ACABQ for the biennium 2002–2003 and the action taken by UN-Habitat
              to implement them, are set out below in tabular form.




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                Implementation of the recommendations made by the Advisory Committee on
                Administrative and Budgetary Questions for the biennium 2002–2003


Recommendations or comments of ACABQ                      Action taken to implement the recommendations

                                          Report of ACAQB (HSP/GC/19/9/Add.1)

“… recommends that the presentation and format of the     The budget document format has been revised and reflects the
budget document be changed so as to provide a clear       UN-Habitat plans, programmes, objectives and expected
and precise presentation of UN-Habitat plans,             accomplishments of the entire programme in a more concise format
programmes, objectives and expected                       and in accordance with the Strategic Framework.
accomplishments.”


“... the proposed budget and the draft work programme     The current work programme and budget submission has been
be combined into a single integrated and coherent         integrated into a single programme budget document
programme budget document.”                               (HSP/GC/20/9).


“... recommends that the information contained in the     This section has been moved and the relevant comments/actions
table in Annex III, on management action taken to         have been incorporated in the text where appropriate.
implement the recommendations of oversight bodies
and the Advisory Committee, be incorporated in the
narratives relating to the subjects covered in the
recommendations.”


“… requests that the next budget submission include       Information regarding the basis and adequacy of rates used for
information regarding the basis and adequacy of rates     support income is addressed in the Support Budget component of
used for support income from technical cooperation,       this document.
general purpose and special purpose funds and trust
fund activities.”


“…the apparent top-heaviness of the staffing of           Subsequent to the ACABQ report, UN-Habitat provided additional
UN-Habitat has not been fully justified in terms of the   information regarding the staffing table to the Governing Council
current operational and management needs of the           (HSP/GC/19/9/Add.2 Paragraph 8), whereupon the Governing
Programme. The Committee recommends that this             Council approved the 2004–2005 staffing table. The present 2006–
issue be addressed in the next budget submission.”        2007 work programme and budget has no significant changes in the
                                                          composition of the staffing table.


“…it is not clear to the Committee that the necessary     Subsequent to the ACABQ report, UN-Habitat clarified that the
funding for the new posts would actually be available.    proposed effective net increase in posts under the Foundation was
In this connection, the Committee emphasizes the need     only 12 professional posts (HSP/GC/19/9/Add.2 Paragraphs 9-11)
for a planned approach to the additional funds, should    and provided additional information regarding the prioritization of
they become available.”                                   additional posts and outputs to the Governing Council
                                                          (HSP/GC/19/9/Add.3). These priorities were reflected in the work
                                                          programme adopted by the Governing Council. A cautious and
                                                          planned approach has been followed in the filling of established
                                                          posts.




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HSP/GC/20/9



      Part One: Executive summary

      I.      Programme overview
              6.       The United Nations Human Settlements Programme (UN-Habitat) has overall responsibility for the
              human settlements programme and serves as the focal point for human settlements in the United Nations
              system as decided by the General Assembly in its resolution 56/206 of 21 December 2001. The overall
              purpose of UN-Habitat is to improve the living and working environment for all through more effective
              participatory and transparent management and development of human settlements. Important recent mandates
              derive from Millennium Declaration targets on achieving a significant improvement in the lives of at least 100
              million slum dwellers by the year 2020, as well as reducing by half the proportion of people without access to
              safe drinking water and sanitation by the year 2015.
              7.      In order to achieve the objectives, the work of UN-Habitat will continue to be organized around the
              following four subprogrammes: Subprogramme 1: Shelter and sustainable human settlements development;
              Subprogramme 2: Monitoring the Habitat Agenda; Subprogramme 3: Regional and technical cooperation;
              Subprogramme 4: Human settlements financing.
              8.       In terms of strategy, there will be no major changes in the UN-Habitat programme of work. The
              programme of work will focus more sharply, however, on the United Nations Millennium Declaration,
              particularly the targets of reducing by half the proportion of people living without access to safe drinking water
              and of achieving a significant improvement in the lives of at least 100 million slum dwellers by the year 2020.
              The two global campaigns on secure tenure and urban governance and all other activities will be aligned with
              efforts to implement the Millennium Declaration targets on slums as well as on water and sanitation.
              UN-Habitat will put emphasis on disaster preparedness and management as well as post-crisis reconstruction.
              This follows the Programme’s appointment to the Executive Committee for Humanitarian Affairs (ECHA), in
              recognition of its mandate as a link between emergency relief, stabilization and reconstruction. UN-Habitat is
              increasingly recognizing youth as a significant stakeholder and partner group in sustainable human settlements
              development. In 2006–2007, more emphasis will be placed on mainstreaming youth in UN-Habitat
              programmes. Emphasis will also be put on highlighting the role of women as active participants and
              beneficiaries of human settlements programmes and projects.

      II.     Financial framework
              9.      UN-Habitat has prepared revised income estimates and a revised expenditure budget for the current
              biennium 2004–2005. The revised estimates have been prepared on the basis of the previous year’s trends, an
              analysis of the actual income received over the first 10 months of 2004 and a review of the anticipated
              commitments for the remainder of the biennium.
              10.      The revised estimates for 2004–2005 are detailed in tables 1–3 and reflect an increase from $27.1
              million to $45.2 million for Foundation special purpose contributions and a decrease from $160.1 million to
              $66.9 million for technical cooperation contributions. The latter reflects the reduction of income due to the
              closure of the Iraq Oil-for-Food Programme on 21 November 2003. The estimates for the Foundation general
              purpose contributions are maintained at the original level of $23.5 million for the biennium, while the estimate
              for the United Nations regular budget reflects the actual allocation for the 2004–2005 biennium.
              11.      The harmonized 2006–2007 budget has been prepared on the basis of a careful analysis of the
              estimated income for the 2006–2007 biennium. The analysis was based upon a review of the previous year’s
              trends and anticipated future year commitments. The income projection for 2006–2007 envisages a 13 per
              cent increase in the general purpose contributions and a doubling of special purpose contributions compared to
              the approved 2004–2005 budget. The expected technical cooperation contributions are maintained at the
              revised 2004–2005 level, while the United Nations regular budget will be adjusted later in accordance with the
              allocations approved by the General Assembly in December 2005.
              12.      The projected income for the biennium 2006–2007 amounts to $166.4 million, the details of which
              are reflected in table 1 below.




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                                                                                                   HSP/GC/20/9


 Table 1. Projected income for the bienniums 2002–2003, 2004–2005 and 2006–2007 (in
 millions of US dollars)

                                      2002–2003                 2004–2005              2006–2007           %*
                                 Estimated    Actual       Estimated   Revised         Proposed          Change
 Regular budget                     14.5          14.5           14.8        16.5         16.5           N/A
 Foundation
        General purpose             10.2          16.5           23.5        23.5         26.5           13%
         Special purpose            13.6          38             27.1        45.2         56.5          108%
         Total                      23.8          54.5        50.6           68.7         83.0          64%
 Technical cooperation              86.6         172.3       160.1           66.9         66.9         (-58%)
 Total income                     124.9          241.3        225.5         152.1        166.4          (-26%)

 *       Percentage change of projected income for 2006–2007 against the 2004–2005 estimates

 13.    The overall expenditure framework proposed to support the draft work programme for 2006–2007
 amounts to $166.3 million and is summarized in table 2 below.

 Table 2. Proposed expenditure for the bienniums 2002–2003, 2004–2005 and 2006–2007 (in
 millions of US dollars)

                                  2002–2003           2004–2005         2004–2005     2006–2007          %*
                                    Actual             Estimated         Revised        Proposed      Change
Regular budget                       14.5                 14.8            16.5             16.5         N/A
Foundation
       General purpose               14.0                 24.2            24.2             27.6          14%
       Special purpose               31.4                 26.3            42.8             55.1         110%
       Total                         45.4                 50.5            67.0             82.7          64%
Technical cooperation               169.3                160.6            69.0             67.1         (-58%)
Total expenditures                  229.2                225.9           152.5            166.3         (-26%)

 *       Percentage change of proposed expenditure for 2006–2007 against the 2004–2005 estimates

 14.    The use of the resources is reflected in more detail in Table 3, showing the allocations for programme,
 programme support and management and administration. It should be noted that 91 per cent of the total
 proposed budget is expended on programme activities (figure 1).
 15.      It is proposed that the overall staffing table for UN-Habitat for the 2006–2007 biennium will remain at
 the level of 144 Professionals, as was approved for the 2004–2005 biennium. It should be noted that
 UN-Habitat will submit proposals for 5 additional Professional posts and 1 upgrade from P4 to P5 under the
 United Nations regular budget account, which will be reflected in the staffing table once the General
 Assembly has made its decision on the UN-Habitat regular budget in December 2005.




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HSP/GC/20/9


Table 3. Consolidated resource plan: estimated 2004-2005, revised 2004-2005 and proposed 2006-2007 (in thousands of US dollars)
                                      2002–2003                       Baseline Resource Plan 2004–2005                                       Revised Resource Plan 2004–2005                                                     Resource Plan 2006–2007
                                        Total       Regular    Technical                UNHHSF                  Total      Regular     Technical                UNHHSF                     Total        Regular     Technical                  UNHHSF                    Total

                                        actual      budget     cooperation   General     Special     Total     resources   budget     Cooperation   General      Special        Total     resources     budget     cooperation     General      Special     Total      resources

                                      resources/                             purpose     purpose                                                    purpose      purpose                                                           purpose     purpose

                                     expenditures

Resources Available

Opening balance                          17,332.5                  9,086.4    6,926.8     3,160.1   10,086.9    19,173.3                 12,356.6    9,737.5      9,641.3      19,378.8    31,735.4                   10,243.3       9,046.9   12,012.4     21,059.3    31,302.6

    Income

        Contributions                   237,931.6   14,832.7     158,700.0   22,000.0    27,120.0   49,120.0   222,652.7   16,515.7      66,000.0   22,000.0     45,200.0      67,200.0   149,715.7     16,515.7      66,000.0      25,000.0   56,500.0     81,500.0   164,015.7

        Other                             3,382.5                  1,400.0    1,500.0                1,500.0     2,900.0                    900.0    1,500.0                    1,500.0     2,400.0                      900.0       1,500.0                 1,500.0     2,400.0

    Total                               258,646.6   14,832.7     169,186.4   30,426.8    30,280.1   60,706.9   244,726.0   16,515.7      79,256.6   33,237.5     54,841.3      88,078.8   183,851.1     16,515.7      77,143.3      35,546.9   68,512.4    104,059.3   197,718.3

Use of resources

    Policy making organs                     22.2       34.6                                                        34.6   24.8                                                                  24.8   24.8                                                                24.8

    Programme resources

     Total programme resources          213,140.1   12,266.1     157,270.8   18,894.0    24,000.0   42,894.0   212,430.9   13,500.3      66,018.0   18,894.0     40,000.0      58,894.0   138,412.3     13,500.3      64,629.7      23,165.3   50,000.0     73,165.3   151,295.3

    Support budget

     Programme support                    9,380.5                  2,173.7    1,340.4     1,993.9    3,334.3     5,508.0                  1,881.3    1,340.4      2,428.9       3,769.3     5,650.6                    1,942.2       1,760.2    4,183.5      5,943.7     7,885.9

     Management and administration        6,687.6    2,532.0       1,114.0    3,956.2      336.0     4,292.2     7,938.2   2,990.6        1,114.0    3,956.2           400.0    4,356.2     8,460.8     2,990.6          486.3       2,675.7      964.7      3,640.4     7,117.3

            Total support budget         16,068.1    2,532.0       3,287.7    5,296.6     2,329.9    7,626.5    13,446.2   2,990.6        2,995.3    5,296.6      2,828.9       8,125.5    14,111.4     2,990.6        2,428.5       4,435.9    5,148.2      9,584.1    15,003.2

Total                                   229,230.4   14,832.7     160,558.5   24,190.6    26,329.9   50,520.5   225,911.7   16,515.7      69,013.3   24,190.6     42,828.9      67,019.5   152,548.5     16,515.7      67,058.2      27,601.2   55,148.2     82,749.4   166,323.3

    Prior period adjustments              2,243.5

    Other adjustments                        75.7

Closing balance                          31,735.4                  8,627.9    6,236.2     3,950.2   10,186.4    18,814.3                 10,243.3    9,046.9     12,012.4      21,059.3    31,302.6                   10,085.1       7,945.7   13,364.2     21,309.9    31,395.0

                                                                                                                                                    Analysis of closing balances:

                                                                                                                                                    Statutory reserve                                                                2,419.1               2,419.1      2,419.1

                                                                                                                                                    Operating reserve: programme support costs                       600.0                       650.0       650.0      1,250.0

                                                                                                                                                    Other fund balances                                             1,992.1          5,526.6    3,072.9    8,599.5     10,591.6

                                                                                                                                                    Project balances                                                7,493.0                     9,641.3     9,641.3    17,134.3
                                                                                                                                                                                                                   10,085.1         7,945.7    13,364.2    21,309.9    31,395.0
                                                                                                                                                                         TOTAL




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   Figure 1. Use of total resources 2006–2007




  Programme                                                      Management &
    Support                                                      Administration
      5%                                                             4%




                                                                    Programme of
                                                                        Work
                                                                        91%



     Part Two: Resource plan

III. Revised resource plan for 2004–2005
     16.    Table 3 shows the resource plan for 2004–2005 (based on the higher level budget scenario) as
     approved by the Governing Council in its resolution 19/2 and the proposed revised resource plan for
     2004–2005 based on updated projections on income and expenditures.
     17.     The main changes between the approved resource plan for 2004–2005 and the revised resource plan
     can be summarized as follows:
            (a)     The balances brought forward (including reserves and project balances) are the
     actual balances reported in the final accounts for the biennium 2002–2003;
            (b)    The United Nations regular budget allocation reflects the actual allocation of $16.5
     million approved by the General Assembly for the biennium 2004–2005;
            (c)     The proposed revised resource plan for the United Nations Habitat and Human
     Settlements Foundation has been increased from $50.5 million to $67.0 million. This is due to a
     projected increase of 67 per cent in the special purpose contributions from $27.1 million to
     $45.2 million, while the general purpose contributions remain at the level of $23.5 million;
             (d)      The revised expenditure budget for the technical cooperation account has been
     decreased from $160.6 million to $69.0 million. It should be noted that at the time of the
     submission of the 2004–2005 budget, at the end of 2002, the Oil-for-Food Programme in Iraq was
     still operating and an allocation of $90.0 million for the 2004–2005 biennium was included in the
     resource plan. Following the closure of the Oil-for-Food Programme on 21 November 2003, the
     expenditure budget for technical cooperation activities has been decreased to $69.0 million;
           (e)     The revised resource plan is submitted to the Governing Council for review and
     UN-Habitat recommends to the Governing Council the approval of the revised allocation for the
     United Nations Habitat and Human Settlements Foundation for the 2004–2005 biennium.



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HSP/GC/20/9


      IV. Proposed resource plan for 2006–2007
      A.      Overall financial framework
              18.    In framing the UN-Habitat budget proposals for the biennium 2006–2007, a positive
              assumption has been made that the upward trend in contributions to UN-Habitat that has been
              experienced in recent years will continue. The harmonized budget format provides an opportunity
              for member states to see the inter-linkages between the three primary sources of income of UN-
              Habitat: the United Nations regular budget; the United Nations Habitat and Human Settlements
              Foundation; and contributions towards technical cooperation activities.
              19.      The total resources available for the biennium 2006–2007 are estimated at $197.7 million (see table
              3), of which $31.3 million is projected as the opening balance at 1 January 2006. The distribution of the
              estimated income of $166.4 million is as follows: the United Nations regular budget $16.5 million; technical
              cooperation activities $66.9 million; and the United Nations Habitat and Human Settlements Foundation $83
              million.
              20.     The expenditure budget for the biennium 2006–2007 has been projected at $166.3 million (tables 3
              and 4). This reflects a 26 per cent decrease compared to the estimated 2004–2005 expenditure budget of
              $225.9 million. The decline in the projected expenditures for the technical cooperation activities from
              $160.6 million to $67.1 million, due to the closure of the Oil-for-Food Programme, has lead to an overall
              decrease in the total expenditure budget. It is proposed to increase the Foundation expenditure budget by
              64 per cent from $50.5 million approved for 2004–2005 to $82.7 million in the biennium 2006–2007, as it is
              expected that the trend of increasing earmarked contributions to the Foundation will continue in the next
              biennium, due to the expected rising number of partnerships and the expansion of existing trust funds like the
              Water and Sanitation Trust Fund, the Palestinian Trust Fund and the Slum Upgrading Facility.
              21.      The greater part of the expenditure budget $151.3 million (91 per cent), is reserved for programme
              activities, whilst the remaining $15.0 million is budgeted for support activities and policy making organs
              (table 3 and figure 1).
              22.    The resource plan for the 2006–2007 proposes to allocate the following additional resources for post
              and non-post items (tables 4 and 6) as set out below.

      1.      Posts
              23.      UN-Habitat will submit proposals for five new Professional posts, one at P-5, four at P-4 and one
              upgrade from P-4 to P-5 under the United Nations regular budget. The staffing table of the Foundation will
              remain at the same level as approved for the biennium 2004–2005, with the exception of one proposed
              upgrade from P-4 to P-5 for the Press and Media Coordinator, to reflect increased responsibilities in the
              Coordinator’s key role as the interface between UN-Habitat and the international and local media as well as
              with major Habitat partners. The staffing table for the Technical Cooperation Fund will remain at the same
              level as for the current biennium. A detailed distribution of posts is provided in tables 6 and 7.

      2.      Non-post costs
              24.      It is proposed that the overall budget for non-post costs (excluding project expenditures) be increased
              by 13 per cent ($1.36 million) over the 2004–2005 biennium. The most significant increases are allocated for
              other staff costs ($470,800) to provide for coverage for maternity leave, periods of peak work loads and
              common staff services and travel ($619,800). The increase in the travel budget is required as a corrective
              measure for past under-funding as the increasing travel needs for resource mobilization and joint
              programming with Habitat partners have not been fully catered for. The relative isolation of UN-Habitat in
              Nairobi and the generally higher costs of travel from Nairobi create an additional cost. The proposed travel
              allocation represents approximately 4 per cent of the total UN-Habitat budget and is in line with the practice
              in other United Nations bodies. UN-Habitat will continue, however, to invest in improving its ability to make
              effective use of modern technology in an endeavour to reduce travel and communications costs. The travel
              budget will also provide for increased participation by UN-Habitat in United Nations coordination bodies like



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                                                                                                       HSP/GC/20/9


    the Executive Committee on Humanitarian Affairs (ECHA), the Chief Executive Board for Coordination, the
    High-level Committee on Management and the High-level Committee on Programmes. A detailed
    distribution of the non-post items is provided in table 4.
    25.      To enhance its normative work, UN-Habitat has been steadily expanding its presence at the country
    level through the deployment of Habitat Programme Managers in United Nations Development Programme
    (UNDP) country offices, in accordance with the memorandum of understanding signed with UNDP in
    October 2002. By the end of August 2004, 17 such managers were in place and it is expected that this number
    will double by the end of 2005. The Habitat Programme Managers are actively involved in the preparation
    process of the poverty reduction strategy papers, in monitoring the Millennium Declaration targets 10 and 11,
    in coordinating the human settlements dimension in humanitarian and rehabilitation programmes, and in
    assisting with the development of proposals for local-level slum upgrading and other urban poverty reduction
    projects.
    26.      It is envisaged that by the end of 2007 a total of 45 Habitat Programme Managers will have been
    recruited. Least developed countries and post-conflict societies will be given priority in the placement of the
    managers. It is estimated that more than half of these managers (25) will be funded by global programmes
    and other special purpose contributions. The estimated cost of $2.4 million for the remaining 20 managers
    will be shared equally between the Foundation general purpose contributions and the Foundation special
    account for programme support, as reflected in the budget.
    27.     Figure 2 and table 5 provide detailed information regarding the distribution of the work programme
    resources over the four subprogrammes. It should be noted that 50 per cent of the expected programme
    resources will be used for technical cooperation activities.

    Figure 2. Distribution of programme resources 2006–2007

                                                                                    Shelter and
                      Human                                                     Sustainable Human
                    Settlements                                                    Settlements
                     Financing                                                    Development
                        9%                                                             23%




Regional and                                                                                  Monitoring the
 Technical                                                                                    Habitat Agenda
Cooperation                                                                                        18%
   50%




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           Table 4. United Nations Human Settlements Programme (UN-Habitat) consolidated budget
           estimates by expenditure category and source of fund budget for the biennium 2006 – 2007 (in
           thousands of US dollars)

                                                2004–2005      Increase / (Decrease)        2006–2007
                                                Approved
                                                               Amount             %         Estimates
                                              appropriations
 Regular budget
   Posts                                            14,030.5     -            -             14,030.5
   Other staff costs                                 1,107.4     -            -              1,107.4
   Consultants                                         234.1     -            -                234.1
   Travel                                              383.5     -            -                383.5
   Contractual services                                 78.4     -            -                 78.4
   General operating expenses                          464.6     -            -               464.6
   Supplies and materials                               85.3     -            -                 85.3
                       Total regular budget         16,515.7     -            -             16,515.7
 Foundation
   Posts                                            16,793.2    3,793.5            22.6     20,586.8
   Other staff costs                                   150.6      401.8           266.9        552.4
   Consultants                                         331.5       113.0           34.1        444.5
   Travel                                              568.3      634.1           111.6      1,202.4
   Contractual services                                726.4      198.2            27.3        924.6
   General operating expenses                        1,802.4        98.7            5.5      1,901.1
   Supplies and materials                              153.6        60.7           39.5        214.3
   Furniture and equipment                             218.5        11.7            5.3        230.2
   Support to UNON                                   1,176.0       717.1           61.0      1,893.1
   Project expenditures (non-earmarked)              4,600.0      200.0             4.3      4,800.0
   Project expenditures (earmarked)                 24,000.0   26,000.0           108.3     50,000.0
                          Total foundation          50,520.5   32,228.9            63.8     82,749.4
 Technical cooperation
   Posts                                             7,747.7    (2,625.8)         (33.9)     5,121.9
   Other staff costs                                    77.5         68.9            89.0      146.4
   Consultants                                         320.0     (141.3)          (44.2)       178.7
   Travel                                              474.7       (14.3)           (3.0)      460.4
   Contractual services                                  -           21.2          100.0        21.2
   General operating expenses                          650.3     (135.9)          (20.9)      514.4
   Supplies and materials                               98.6       (25.8)         (26.2)        72.8
   Furniture and equipment                              75.7       (19.6)         (25.9)        56.1
   Support to UNON                                   1,114.0      (627.7)         (56.3)      486.3
   Project expenditures                            150,000.0   (90,000.0)         (60.0)    60,000.0
                Total technical cooperation        160,558.5   (93,500.3)         (58.2)    67,058.2

                                                2004–2005      Increase / (Decrease)
           Object of expenditure                Approved       Amount         %             Estimates    %
                                              Appropriations
   Posts                                            38,571.4      1,167.7            3.0     39,739.2    77.1
   Other staff costs                                 1,335.4        470.8           35.3      1,806.2     3.5
   Consultants                                         885.6       (28.3)          (3.2)        857.3     1.7
   Travel                                            1,426.5        619.8           43.5      2,046.3     4.0
   Contractual services                                804.8        219.4           27.3      1,024.2     2.0
   General operating expenses                        2,917.3         (37.2)        (1.3)      2,880.1     5.6
   Supplies and materials                              337.5          34.9          10.3        372.4     0.7
   Furniture and equipment                             426.1          (7.9)        (1.9)        418.2     0.8
   Support to UNON                                   2,290.0           89.4          3.9      2,379.4     4.6
   Project expenditures (non-earmarked)              4,600.0        200.0            4.3       4,800.0
   Project expenditures (earmarked)                174,000.0    (64,000.0)        (36.8)    110,000.0
 Grand total                                       227,594.7    (61,271.4)        (26.9)    166,323.3    100.0

12
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       Table 5. Estimated programme resources by source of funds and subprogramme (in thousands of
       United States dollars)

                                                                    2004–2005           Change
                                                                                                          2006–2007
                     Subprogramme                                   Approved                              Estimates
                                                                  Appropriations   Amount            %
Policy-making organs
United Nations regular budget                                             24.8            -          -           24.8
                                 Total policy-making organs               24.8            -          -           24.8
Programme
  Shelter and sustainable human settlements development (I)
   United Nations regular budget                                       5,908.4            -         -         5,908.4
   Foundation general purpose                                          8,005.9       1,268.0      15.8        9,273.9
   Foundation special purpose                                          9,232.3      11,001.7     119.2       20,234.0
  Total shelter and sustainable human settlements development         23,146.6      12,269.7      53.0       35,416.3
  Monitoring the Habitat Agenda (II)
   United Nations regular budget                                       5,040.1            -          -        5,040.1
   Foundation general purpose                                           6,341.8      2,290.2      36.1        8,632.0
   Foundation special purpose                                           7,791.1      6,440.4      82.7       14,231.5
                        Total monitoring the Habitat Agenda            19,173.0      8,730.6      45.5       27,903.6
  Regional and technical cooperation (III)
   United Nations regular budget                                        2,276.3            -         -        2,276.3
   Foundation general purpose                                           1,192.7         415.8      34.9       1,608.5
   Foundation special purpose                                           3,702.5       2,511.0      67.8       6,213.5
   Technical cooperation                                              157,270.8    (92,641.1)    (58.9)      64,629.7
                       Total regional and technical cooperation       164,442.3    (89,714.3)    (54.6)      74,728.0
  Human settlements financing (IV)
   United Nations regular budget                                          275.5           -          -          275.5
   Foundation general purpose                                           3,353.6        297.3       8.9        3,650.9
   Foundation special purpose                                           3,274.1      6,046.9     184.7        9,321.0
                           Total human settlements financing            6,903.2      6,344.2      91.9       13,247.4
Subtotal
United Nations regular budget                                          13,500.3            -         -       13,500.3
Foundation general purpose                                             18,894.0       4,271.3      22.6      23,165.3
Foundation special purpose                                            24,000.0       26,000.0     108.3      50,000.0
Technical cooperation                                                 157,270.8    (92,641.1)    (58.9)      64,629.7
                                           Total programme           213,665.1     (62,369.8)    (29.2)     151,295.3
Programme support
Foundation general purpose                                             1,340.4         419.8       31.3       1,760.2
Foundation special purpose                                             1,993.9       2,189.6      109.8       4,183.5
Technical cooperation                                                  2,173.7       (231.5)     (10.7)       1,942.2
                              Total programme support                  5,508.0       2,377.9       43.2       7,885.9
Management and administration
United Nations regular budget                                          2,990.6             -         -        2,990.6
Foundation general purpose                                             3,956.2      (1,280.5)    (32.4)       2,675.7
Foundation special purpose                                               336.0          628.7     187.1         964.7
Technical cooperation                                                  1,114.0        (627.7)    (56.3)         486.3
                    Total management and administration                8,396.8      (1,279.5)    (15.2)       7,117.3

Grand total
United Nations regular budget                                         16,515.7             -         -       16,515.7
Foundation general purpose                                            24,190.6        3,410.5      14.1      27,601.1
Foundation special purpose                                            26,329.9       28,818.3    109.5       55,148.2
Technical cooperation                                                160,558.5     (93,500.3)    (58.2)      67,058.2
                                                Grand total          227,594.7     (61,271.4)    (26.9)     166,323.3
                                                                                                                  13
    HSP/GC/20/9



            Table 6. UN-Habitat - Estimated distribution of posts by source of funds

                                                                 Professional category and above

                                                                                                                               Grand
                                                        USG ASG D–2        D-1 P-5 P-4       P-3 P–2/1 Total L-L       Other   Total

2004–2005 revised*
 United Nations regular budget                               1         1     4     8    17   12      5   48      23     2          73
 Foundation general purpose                                       1    2     5     9    12   16      4   49      37     2          88
 Foundation special purpose                                            1     1     1     2    4      2   11      18                29
 Technical cooperation                                                       3    12     5    2      1   36      15     1          52
                                      Total 2004-2005        1    1    4    13    30    36   34      2   144     93     5          242
  Changes (decrease)/increase
  United Nations regular budget                              -     -   -      -    -     -    -      -     -       -    -           -
  Foundation general purpose                                 -     -   -      -    1   (1)    -      -     -     (1)    1           -
  Foundation special purpose                                 -     -   -      -    -     -    -      -     -       -    -           -
  Technical cooperation                                      -     -   -      -    -     -    -      -     -       -    -           -
                                         Net changes         -     -   -      -    1   (1)    -      -     -     (1)    1           -
2006–2007
 United Nations regular budget                               1         1     4     8    17   12      5   48      23     2          73
 Foundation general purpose                                       1    2     5    10    11   16      4   49      36     3          88
 Foundation special purpose                                            1     1     1     2    4      2   11      18                29
 Technical cooperation                                                       3    12     5    2      1   36      15     1          52
                                     Total 2006–2007         1    1    4    13    31    35   34      2   144     92     6          242

            Figure 3. Distribution of Professional staff posts by source of funds 2006–2007




    *        The source of funding for three Professional posts and two General Service posts previously proposed but not funded
    by the United Nations regular budget in the 2004–2005 biennium has been shifted to Foundation special purpose
    project-funded (one D–2, one P-5 and two General Service) and Technical cooperation (one P-4).

    Note: Excludes five (5) new posts and one (1) upgrade being requested under the United Nations regular budget for the
    biennium 2006–2007.
    14
                                                                                                                    HSP/GC/20/9



      Table 7. UN-Habitat estimated distribution of posts by source of funds and programme
                                                           Professional category and above                                   Grand
          Subprogramme                   USG       ASG     D-2     D-1     P-5    P-4   P-3   P-2/1   Total   L-L    Other   Total
Subprogramme 1: Shelter and sustainable human settlements development
    2004–2005
    United Nations regular budget                                     1     4      7      5       3      20     9                 29
    Foundation general purpose                                 1      3     3      4      5       2      18    12        2        32
    Foundation special purpose                                        1     1             1               3     1                  4
    Technical cooperation                                                                         4       4                        4
                     Subtotal 2004–2005       -        -       1      5     8     11    11        9      45    22        2        69
    2006–2007
    United Nations regular budget                                     1     4      6      5       3      19     9                 28
    Foundation general purpose                                 1      2     3      4      5       2      17    11        2        30
    Foundation special purpose                                        -     1             1               2     1                  3
    Technical cooperation                                                                         4       4                        4
                     Subtotal 2006–2007       -        -       1      3     8     10    11        9      42    21        2        65
Subprogramme 2: Monitoring the Habitat Agenda
    2004–2005
    United Nations regular budget                                     1     3      5      6       2      17     9                 26
    Foundation general purpose                                              4      3      6       2      15    12                 27
    Foundation special purpose                                 1                   1      1               3     1                  4
    Technical cooperation                                                                         2       2                        2
                     Subtotal 2004–2005       -        -       1      1     7      9    13        6      37    22        -        59
    2006–2007
    United Nations regular budget                              -      1     3      6      6       2      18     9                 27
    Foundation general purpose                                 1      1     4      3      6       2      17    13                 30
    Foundation special purpose                                        1            1      1               3     1                  4
    Technical cooperation                                                                         2       2                        2
                     Subtotal 2006–2007       -        -       1      3     7     10    13        6      40    23        -        63
Subprogramme 3: Regional and technical cooperation
    2004–2005
    United Nations regular budget                              1                   3                      4     1                  5
    Foundation general purpose                                                            1               1     1                  2
    Foundation special purpose                                                                            -                        -
    Technical cooperation                                             3    12      2      1       5      23     8        1        32
                     Subtotal 2004–2005       -        -       1      3    12      5      2       5      28    10        1        39
    2006–2007
    United Nations regular budget                              1                   3                      4     1                  5
    Foundation general purpose                                                            1               1     1                  2
    Technical cooperation                                             3    12      2      1       5      23     8        1        32
                     Subtotal 2006–2007       -        -       1      3    12      5      2       5      28    10        1        39
Subprogramme 4: Human settlements financing
    2004–2005
    United Nations regular budget                                                  1                      1                        1
    Foundation general purpose                         1       1      1     1      1      2               7     6                 13
                     Subtotal 2004–2005       -        1       1      1     1      2      2       -       8     6        -        14
    2006–2007
    United Nations regular budget                                                  1                      1                        1
    Foundation general purpose                         1       -      1     1      1      2               6     5                 11
    Foundation special purpose                                 1                                          1                        1
                     Subtotal 2006–2007       -        1       1      1     1      2      2       -       8     5        -        13
Programme support
    2004–2005
    Foundation general purpose                                        1     1      1      1               4     3                  7
    Foundation special purpose                                                     1      2       2       5    16                 21
    Technical cooperation                                                          3      1       3       7     7                 14
                     Subtotal 2004–2005       -        -       -      1     1      5      4       5      16    26        -        42
    2006–2007
    Foundation general purpose                                        1     1      1      1               4     3                  7
    Foundation special purpose                                                     1      2       2       5    16                 21
    Technical cooperation                                                          3      1       3       7     7                 14
                     Subtotal 2006–2007       -        -       -      1     1      5      4       5      16    26        -        42
Management and administration
    2004–2005
    United Nations regular budget            1                        2     1      1      1               6     4        2        12
    Foundation general purpose                                                     3      1               4     3                  7
                     Subtotal 2004–2005      1         -       -      2     1      4      2       -      10     7        2        19
    2006–2007
    United Nations regular budget            1                        2     1      1     1                6     4        2         12
    Foundation general purpose                                              1      2     1                4     3        1          8
                     Subtotal 2006–2007      1         -       -      2     2      3     2        -      10     7        3         20
                  2004–2005 total posts      1         1       4    13     30     36    34       25     144    93        5        242
                  2006–2007 total posts      1         1       4    13     31     35    34       25     144    92        6        242


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      3.      United Nations regular budget
              28.     The regular budget appropriation for UN-Habitat approved by the General Assembly for the
              biennium 2004–2005 amounted to $16.5 million, of which $15.5 million falls under section 15, “Human
              settlements”, and $1.0 million under section 23, “Regular programme of technical cooperation”, for sectoral
              advisory services in the field of human settlements.
              29.      UN-Habitat submitted to United Nations Headquarters a proposal for an increase in the United
              Nations regular budget funding of UN-Habitat for the biennium 2006–2007. Since the United Nations regular
              budget is subject to the approval of the General Assembly at its sixtieth session in December 2005, the
              2006–2007 amounts are provisional. Accordingly, no cost adjustments have been applied to this part of the
              resource plan for 2006–2007, as this will be done at United Nations Headquarters at the time of the adoption
              of the budget by the General Assembly.
              30.       Five new Professional posts and one upgrade have been proposed for the 2006–2007 regular budget.
              The proposed posts are: a senior human settlements specialist (P-5) to coordinate UN-Habitat shelter activities
              in humanitarian affairs, as well as to provide the human settlements perspective in disaster and post conflict
              situations. This will be effected in coordination with the Office for the Coordination of Humanitarian Affairs
              (OCHA) and other relevant United Nations agencies; three human settlements officers (P-4) to be based in the
              three regional offices of UN-Habitat to coordinate the monitoring of Millennium Declaration targets 10 and
              11 and urban indicators at regional and local levels; and one human settlements officer (P-4) to strengthen the
              Youth and Partners Section in UN-Habitat. The human settlements officer will particularly focus on further
              developing and implementing UN-Habitat programme activities related to youth, both in terms of
              policy-making as well as joint youth programmes at the local level with other Habitat partners. One upgrade
              from P-4 to P-5 is proposed for a senior human settlements officer post in the UN-Habitat New York office to
              reflect the increase in responsibilities of the post with regard to General Assembly and inter-agency affairs, as
              well as coordination with key Habitat partners. These proposed posts will be reflected in the staffing table
              subject to their review and approval by the General Assembly in December 2005.

      4.      United Nations Habitat and Human Settlements Foundation
              31.     The contributions to the Foundation are of two kinds: general purpose and special purpose. General
              purpose contributions are voluntary contributions from Governments to support the implementation of the
              approved UN-Habitat work programme. Special purpose contributions are earmarked donations from
              Governments and other donors for the implementation of specific activities, consistent with the UN-Habitat
              mandate and work programme. Included within the special purpose funds is the special account for
              programme support costs, under which charges for support services for the implementation of activities
              financed by special purpose contributions are reflected.
              32.      The level of contributions towards the United Nations Habitat and Human Settlements Foundation
              has been increasing steadily over the past years (see figure 4). Over the past two years UN-Habitat has been
              able to sign multi-year agreements with a number of donor countries, covering both general purpose
              contributions as well as special purpose contributions. This has improved the funding predictability and has
              contributed towards the financial stability of the organization.
              33.       Over the past decade, the level of general purpose contributions has increased from an average of
              $3 million per year to an estimated $11 million in 2004. Similarly, the special purpose contributions have
              increased from an average of $8 million in the mid-1990s to an estimated $18 million in 2004. This is more or
              less in line with the requirements for the approved budget for the 2004–2005 biennium (higher level
              scenario), which were $11 million per annum for general purpose contributions and $13.5 million for the
              special purpose contributions.
              34.     The proposed budget for the United Nations Habitat and Human Settlements Foundation for the
              biennium 2006–2007 is $82.7 million, including $73.1 million for programme resources and a support budget
              of $9.6 million (table 8). This represents an increase of 64 per cent in the total Foundation budget compared to
              the $50.5 million approved for the 2004–2005 biennium, reflecting increasing support for the organization.




16
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Figure 4. Summary of General Purpose and Special Purpose Contributions (1994-2004)




           Note: 2004 (e) shows estimated figures for the year 2004

           35.      To sustain this budget, an income of $83 million is required over the biennium, apportioned as
           $25 million in general purpose contributions, $56.5 million in special purpose contributions and $1.5 million
           in other miscellaneous income (table 3).
           36.       With regard to the non-earmarked contributions, the required income translates to $12.5 million per
           year, or an increase of 13 per cent compared to the approved income estimate for the 2004–2005 biennium.
           Figure 4 shows the history of general purpose contributions over the period 1994–2004. There is clearly a
           rising trend in the contributions and it is envisaged that this will continue in the 2006–2007 biennium.
           37.      With regard to the special purpose contributions, the assumption is that income will be $28.25 million
           per annum. Figure 4 illustrates the special purpose contributions over the period 1994–2004. Over the last few
           years, the special purpose contributions have increased significantly. With the Water and Sanitation Trust
           Fund and the Slum Upgrading Facility coming to full development in the next biennium, as well as the
           expected increase in the number of partnership programmes, the projected increase to $28.25 million per
           annum is considered prudent.



                                                                                                                           17
HSP/GC/20/9

              38.     While commendable progress has been made in resource mobilization efforts by UN-Habitat, it
              should be noted that one of the Programme’s remaining challenges in this area is to overcome the structural
              financial weakness that it faces in that the special purpose contributions outweigh the general purpose
              contributions, which remain at a relatively modest level. In addition, it should be noted that the funding is
              dependent on a relatively small group of key donors.
              39.     In view of a financial situation that is not yet entirely predictable and stable on a multi-year basis,
              UN-Habitat has taken a cautious approach with regard to the filling of established posts in the United Nations
              Habitat and Human Settlements Foundation. Out of the 58 Professional posts approved for the 2004–2005
              biennium, 15 posts (26 per cent) remained frozen as at 31 August 2004. The budget proposal for 2006–2007
              does not envisage an increase in posts.
              40.      In line with the UN-Habitat policy not to maintain outstanding pledges for periods longer than four
              years, all outstanding pledges related to the period up to December 2000 will be written off at the close of the
              2004 accounts and a report will be submitted to the Governing Council. As at 31 August 2004, an amount of
              $1,150 remained outstanding on pledges prior to December 2000.

      5.      Technical cooperation activities
              41.     The proposed budget for technical cooperation activities has been decreased from $160.6 million
              approved for the 2004–2005 biennium to $67.1 million for the 2006–2007 biennium. As already mentioned,
              while reviewing the revised allocations for 2004–2005, the main reason for this reduction has been the scaling
              down of UN-Habitat technical cooperation activities in Iraq, following the closure of the Oil-for-Food
              Programme. With the support of bilateral donors, however, as well as allocations through the UNDG Trust
              Fund for Iraq, UN-Habitat has been able to develop a significant technical cooperation portfolio in Iraq
              (approximately $50 million), which could be further increased as the conditions for post-conflict
              reconstruction improve.
              42.     UN-Habitat charges a 10 per cent programme support fee on actual expenditures of country-specific
              technical cooperation activities. However, it should be noted that in a few instances a lower rate is charged
              when United Nations system-wide agreements have been reached on other rates. This is the case, for example,
              with contributions from the European Commission and the United Nations Development Group (UNDG)
              Trust Fund for Iraq.

      B.      United Nations Habitat and Human Settlements Foundation proposed budget
              for the biennium 2006–2007

      1.      Proposed budget for 2006–2007
              43.     In accordance with financial rule 303.1 of the Foundation, the Executive Director of UN-Habitat is
              submitting the proposed budget of the United Nations Habitat and Human Settlements Foundation for the
              biennium 2006–2007, covering anticipated programme and support costs, for approval by the Governing
              Council at its twentieth session.
              44.     The proposed expenditure budget for the Foundation amounts to $82.7 million (see table 8). The
              budget consists of the following elements:
                       (a)       Programme                                        $73.2 million           (88.5%)
                       (b)       Programme support                                $5.9 million            (7.1%)
                       (c)       Management and administration                     $3.6 million           (4.4%)
              45.      Two thirds of the Foundation resources ($54.8 million) are allocated to project expenditures (figure 5).
              The remaining 34 per cent are allocated to posts and other staff costs (26 per cent) and non-staff items
              (8 per cent). Detailed resource tables are provided for in the respective sections in chapter VI below.
              46.     The staffing table for the Foundation in the biennium 2006–2007 will remain at the same level as for
              the biennium 2004–2005. Accordingly, the staffing table for the Foundation comprises 60 Professional and 57
              General Service posts, of which 11 Professional and 18 General Service posts are funded from special purpose
              contributions (see tables 6 and 11). One post, the press and media coordinator, is proposed for upgrading from
              P-4 to P-5.


18
                                                                                                                      HSP/GC/20/9


                    Table 8. United Nations Habitat and Human Settlements Foundation Budget for the
                    biennium 2006–2007 (in thousands of US dollars)

                                                     2004–2005                       Changes                           2006–2007
                                                     Approved            Volume                     Cost                Estimates
                                                   appropriations
                                                                         Amount         %       Amount         %

Programme
  Posts                                                     12,721.5         354.1      2.8        1,498.5     11.8        14,574.1
  Other staff costs                                           102.6         256.0     249.7          19.6      19.1           378.2
  Consultants                                                 331.5          (0.0)     (0.0)         18.2       5.5           349.7
  Travel                                                      455.1         425.9      93.6          48.2      10.6           929.2
  Contractual services                                         527.4          52.8     10.0          31.7       6.0           611.9
  General operating expenses                                               1,207.1    100.0          66.1     100.0         1,273.2
  Supplies and materials                                                    102.9     100.0            5.6    100.0           108.5
  Furniture and equipment                                     155.9         (24.3)    (15.6)           8.9      5.7           140.5
  Project expenditures (non-earmarked)                       4,600.0         200.0      4.3                                 4,800.0
  Project expenditures (earmarked)                          24,000.0      26,000.0    108.3                                50,000.0
                               Total programme              42,894.0      28,574.5     66.6        1,696.8      4.0        73,165.3

Support budget
    Programme support
           Posts                                             2,971.1       1,200.0     40.4         515.0      17.3          4,686.1
           Other staff costs                                     39.4         84.0    213.2          12.2      31.0           135.6
           Consultants                                                        59.9    100.0            3.3    100.0              63.2
           Travel                                                77.3       100.5     130.0          15.2      19.7           193.0
           Contractual services                                199.0          20.1     10.1          12.0       6.0           231.1
           General operating expenses                                       463.1     100.0          25.3     100.0           488.4
           Supplies and materials                                             69.1    100.0            3.7    100.0              72.8
           Furniture and equipment                               47.5         22.2     46.7            3.8      8.0              73.5
                    Total programme support                  3,334.3       2,018.9     60.5         590.5      17.7         5,943.7

    Management and administration
           Posts                                            1,100.6           91.6      8.3         134.4      12.2          1,326.6
           Other staff costs                                     8.6          28.0    325.6            2.0     23.3              38.6
           Consultants                                                        30.0    100.0            1.6    100.0              31.6
           Travel                                               35.9          40.1    111.7            4.2     11.7              80.2
           Contractual services                                               77.4    100.0            4.2    100.0              81.6
           General operating expenses                       1,802.4      (1,669.2)    (92.6)           6.3      0.4           139.5
           Supplies and materials                             153.6        (122.3)    (79.6)           1.7      1.1              33.0
           Furniture and mquipment                              15.1           0.3      2.1            0.8      5.3              16.2
           Support to UNON                                  1,176.0         618.8      52.6          98.3       8.4         1,893.1

    Total management and administration                     4,292.2        (905.3)    (21.1)        253.5       5.9         3,640.4

                         Total support budget               7,626.5        1,113.6     14.6         844.0      11.1         9,584.1

                                    Grand total            50,520.5       29,688.1     58.8        2,540.8      5.0        82,749.4


                    47.      It should be noted that the general purpose contributions to the United Nations Habitat and Human
                    Settlements Foundation primarily cater for UN-Habitat staff and operational costs and that the costs of
                    activities are to a large extent funded from special purpose contributions.




                                                                                                                                 19
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              Figure 5. United Nations Habitat and Human Settlements Foundation (use of resources by
              expenditure category, 2006–2007)




      2.      Proposed programme budget for 2006–2007
              48.      The proposed programme budget for 2006–2007 provides for an expenditure of $73.2 million as
              detailed in table 8. Within the programme budget, an amount of $50 million has been set aside for direct
              programme expenditure out of special purpose contributions, as compared to $24 million budgeted for the
              2004–2005 biennium. The remaining $23.2 million of programme expenditure is provided for by general
              purpose funds and are reflected in table 9. An amount of $15 million (65 per cent) pertains to staff costs,
              $3.4 million (14 per cent) to non-post costs while $4.8 million (21 per cent) is allocated for non-earmarked
              projects.
              49.      The proposed programme staffing table consists of 47 Professional posts and 34 General Service
              posts, of which 41 Professional posts and 32 General Service posts are funded from general purpose funds
              (tables 7 and 11). Compared to the staffing table for 2004–2005, the number of posts in the proposed
              programme budget for 2006–2007 has been reduced by one General Service post. This post has been
              reallocated to management and administration and is intended to strengthen the New York office. A detailed
              summary of posts financed by the United Nations Habitat and Human Settlements Foundation, by
              subprogramme and category of staff, is provided in table 7.
              50.      The non-earmarked project expenditures for the biennium are increased from $4.6 million to
              $4.8 million. As in the past, these project and programme activities are approved by the Executive Director on
              a case-by-case basis and are targeted to those areas of the approved work programme where the Programme
              has to respond to urgent requests for assistance, organize identification missions and prepare project
              documents for fund-raising. These activities follow the programme priorities of UN-Habitat, and tend to
              concentrate on areas for which it is difficult to attract earmarked funding.
              51.      Given the limited resources of the Foundation, the non-earmarked project activities are normally
              restricted to preparatory assistance, activities with a demonstrated multiplier effect and those that are likely to
              have a significant impact on the overall development of human settlements. Resources may also be provided
              for information activities, documentation and awareness-raising.




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                     Table 9. United Nations Habitat and Human Settlements Foundation: general purpose funds
                     only budget for the biennium 2006–2007 (in thousands of US dollars)

                                                       2004–2005                   Changes                   2006–2007
                                                      Approved                 Volume           Cost         Estimates
                                                     appropriations     Amount        %       Amount


Programme
      Posts                                                 12,721.5      354.1        2.8    1,498.5           14,574.1
      Other staff costs                                        102.6      256.0      249.7       19.6              378.2
      Consultants                                              331.5        (0.0)     (0.0)      18.2              349.7
      Travel                                                   455.1       425.9      93.6       48.2              929.2
      Contractual services                                     527.4         52.8     10.0       31.7              611.9
      General operating expenses                                         1,207.1     100.0       66.1            1,273.2
      Supplies and materials                                               102.9     100.0        5.6              108.5
      Furniture and equipment                                  155.9      (24.3)    (15.6)        8.9              140.5
      Project expenditures (non-earmarked)                   4,600.0      200.0        4.3                       4,800.0


                                 Total programme            18,894.0    2,574.5      13.6     1,696.8           23,165.3


Support budget
  Programme support
      Posts                                                 1,199.5                            166.8             1,366.3
      Other staff costs                                         6.2        22.7     364.5        7.0                35.9
      Travel                                                   34.4        48.4     141.0       10.0                92.8
      Contractual services                                     88.4        5.0        5.6         5.1                  98.5
      General operating expenses                                         115.8      100.0         6.3                 122.1
      Supplies and materials                                               9.9      100.0         0.5                  10.4
      Furniture and equipment                                  11.9       20.5      172.7         1.8                  34.2


                          Total programme support           1,340.4      222.3       16.6      197.5             1,760.2


  Management and administration
    Posts                                                   1,100.6        91.6       8.3        134.4           1,326.6
    Other staff costs                                           8.6        28.0     324.4          2.0              38.6
    Consultants                                                            30.0     100.0          1.6              31.6
    Travel                                                     35.9        40.1     111.6          4.2              80.2
    Contractual services                                                   77.4     100.0          4.2              81.6
    General operating expenses                              1,802.4    (1,669.2)    (92.6)         6.3             139.5
    Supplies and materials                                    153.6      (122.3)    (79.6)         1.7              33.0
    Furniture and equipment                                    15.1          0.3      2.1          0.8              16.2
    Support to UNON                                           840.0         40.2      4.8         48.2             928.4

           Total management and administration              3,956.2     (1,483.9)   (37.5)       203.5           2,675.7


                              Total support budget          5,296.6     (1,261.6)   (23.8)       400.9           4,435.9

                                      Grand total          24,190.6     1,312.9       5.4      2,097.7          27,601.1




                                                                                                                21
HSP/GC/20/9


              52.      The other increases in the programme budget are $275,600 for other staff costs (to provide for
              coverage for maternity leave, periods of peak workloads and common staff services), $18,200 for consultants,
              $474,100 for travel and $84,500 for contractual services (table 8). It should be noted that the expenditures for
              general operating expenses and supplies and materials are reflected under each of the subprogrammes, instead
              of a consolidated allocation under management and administration as in the previous biennium. This is done
              in order to reflect the actual operating costs of the subprogramme.

      3.      Proposed support budget for 2006–2007
              53.    The details of the proposed support budget for the biennium 2006–2007 are reflected in table 8,
              showing the two components of the support budget: programme support and management and administration.

      (a)     Programme support
              54.     The programme support budget is funded out of two principal resources, the general purpose
              contributions (table 9) and the special account for programme support costs (table 10). Where the special
              account is concerned, in accordance with United Nations financial rules and regulations, UN-Habitat charges
              a 13 per cent programme support fee on actual expenditures of activities funded by special purpose
              contributions. It should be noted that in a few instances lower rates are charged. This is when United Nations
              system-wide agreements have been reached on other rates, as is the case with contributions from the
              European Commission and the United Nations Fund for International Partnership (UNFIP). It should be
              noted that, following recommendations made by the Joint Inspection Unit (JIU), set out in its report
              JIU/REP/2002/3, on the programme support costs and concerns raised by a number of donor countries, a
              United Nations inter-agency working group has been established under the auspices of the High Level
              Committee on Management, to review the measurement, adequacy and recovery of programme support
              costs. UN-Habitat is participating in this working group and will abide by its recommendations, once
              approved.
              55.     The proposed programme support budget for 2006–2007 is $5,943,700, of which $1,760,200 is
              funded from general purpose contributions and the remaining $4,183,500 from the special account for
              programme support costs.
              56.      The proposed programme support staffing table comprises nine Professional and 19 General Service
              posts (table 11). This is at the same level as the 2004–2005 biennium. Nevertheless there is a volume increase
              of $1,200,000 on staff expenditures, due to the allocation for the salaries of Habitat Programme Managers
              stationed in UNDP country offices.
              57.     The other increases in the programme support budget are $96,200 for other staff costs to provide for
              such contingencies as coverage for maternity leave, periods of peak workloads and common staff services,
              $63,200 for consultants, $115,700 for travel and $32,100 for contractual services. It should be noted that the
              expenditures for general operating expenses and supplies and materials are also reflected under programme
              support, instead of a consolidated allocation under management and administration as in the previous
              biennium. This is done in order to reflect the actual operating costs of the programme support.

      (b)     Management and administration
              58.     The proposed budget for management and administration has decreased to $3,640,400 compared to
              $4,292,200 for 2004–2005. The budget has three main components: posts, general operating expenses and the
              contribution to the United Nations Office at Nairobi.

      (i)     Posts
              59.      There are two staffing amendments proposed for the 2006–2007 biennium. The post of press and
              media coordinator is to be upgraded from P-4 to P-5. This is in recognition of the increased responsibilities of
              the position arising from the elevation of UN-Habitat to a programme and the resulting intensified
              international media engagement in UN-Habitat activities. In addition, one General Service post is reallocated
              from programme resources to strengthen the UN-Habitat New York office.



22
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                Table 10. United Nations Habitat and Human Settlements Foundation (special account for
                programme support) budget for the biennium 2006–2007 (in thousands of US dollars)

                                                      2004–2005                     Changes                    2006–2007
                                                      Approved                   Volume                Cost
                                                   appropriations         Amount           %        Amount     Estimates

Programme support
  Posts                                                   1,771.6             1,200.0       67.7      348.2         3,319.8
  Other staff costs                                          33.2                61.3      184.8        5.2            99.7
  Consultants                                                                    59.9      100.0         3.3           63.2
  Travel                                                     42.9                52.1      121.2         5.2         100.2
  Contractual services                                     110.6                 15.1        13.7        6.9         132.6
  General operating expenses                                                   347.3       100.0        19.0         366.3
  Supplies and materials                                                         59.2      100.0         3.2           62.4
  Furniture and equipment                                   35.6                  1.7        4.7         2.0           39.3
                 Total programme support                 1,993.9             1,796.6        90.1       393.0        4,183.5


Management and administration
 Support to UNON                                           336.0               578.6       172.2       50.1          964.7
   Total management and administration                     336.0               578.6       172.2       50.1          964.7


                             Total expenditures           2,329.9           2,375.2        101.9      443.1         5,148.2


       (ii)     General operating expenses
                60.     As mentioned above, in order to give a more accurate picture of the actual operation costs of the
                subprogrammes and the programme support functions, the general operating expenses of the Foundation are
                no longer consolidated under management and administration, but are reflected under each of the
                appropriation lines. This reallocation has led to a volume decrease of $1,669,200 on the provision for general
                operating expenses under management and administration. The total allocation in the Foundation for general
                operating expenses has been increased by 5.5 per cent from $1,802,400 to $1,901,100.

       (iii)    United Nations Office at Nairobi
                61.      Under agreements reached with the United Nations Office at Nairobi, UN-Habitat is required to
                reimburse the Office for the delivery of services related to the extrabudgetary funds of UN-Habitat. The
                2006–2007 contribution is tentatively set at $2,379,400, of which $1,893,100 is provided by the Foundation
                and $486,300 is provided by the technical cooperation special account for programme support costs. It should
                be noted that the United Nations Office at Nairobi has sought additional regular budget funding for the
                2006–2007 biennium, and approval of this proposal by the General Assembly at its fifty-ninth session may
                lead to reductions in the reimbursement of services provided by the Office.

       4.       Financial reserve
                62.      In accordance with financial rule 311.2 (b), upon the recommendation of the Executive Director, the
                Governing Council determines the level of the general purpose statutory reserve from time to time. The
                statutory reserve was set at $1,002,663 in 1989 and increased to $2,419,100 in 2004. In view of the expected
                level of expenditures in the 2006–2007 biennium, no further increase in the statutory reserve is required.




                                                                                                                              23
HSP/GC/20/9



                                    Table 11. Overall staffing table: (United Nations Habitat and Human Settlements
                                    Foundation) general and special purpose funds for the biennium 2004–2005 and 2006–2007

                                                                         Programme support   Management and
                                         Level         Programme                              administration       Total
                                          USG
                                          ASG                        1                                                       1
                                          D-2                        3                                                       3
                                          D-1                        5                  1                                    6
                                          P-5                        9                  1                                   10
      2004-2005




                                          P-4                        9                  2                      3            14
                                          P-3                       16                  3                      1            20
                                          P-2                        4                  2                                    6
                                       Subtotal                     47                  9                      4           60
                                           L-L                      33                 19                      3           55
                                           O-L                       2                                                      2
                                       Subtotal                     35                 19                      3           57

                                    Grand total                     82                 28                    7             117
                                          USG                        -                  -                    -                   -
                                          ASG                        -                  -                    -                   -
      Changes (decrease)/increase




                                          D-2                        -                  -                    -                   -
                                          D-1                        -                  -                    -                   -
                                          P-5                        -                  -                    1               1
                                          P-4                        -                  -                  (1)              (1)
                                          P-3                        -                  -                    -                 -
                                          P-2                        -                  -                    -                 -
                                      Subtotal                       -                  -                    -                 -

                                          L-L                      (1)                  -                      -            (1)
                                          O-L                        -                  -                      1             1
                                       Subtotal                    (1)                  -                      1               -

                                    Grand total                    (1)                  -                      1                 -
                                          USG
                                          ASG                        1                                                       1
                                          D-2                        3                                                       3
                                          D-1                        5                  1                                    6
      2006-2007




                                          P-5                        9                  1                      1            11
                                          P-4                        9                  2                      2           13
                                          P-3                       16                  3                      1           20
                                          P-2                        4                  2                                   6
                                       Subtotal                     47                  9                      4           60

                                          L-L                       32                 19                      3           54
                                          O-L                        2                                         1            3
                                       Subtotal                     34                 19                      4           57
                                    Grand total                     81                 28                      8           117




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     Part Three: Work programme

V.   Overview
     63.       UN-Habitat is responsible for the implementation of the human settlements programme. The
     activities for which UN-Habitat is responsible fall within programme 12 of the strategic framework for the
     period 2006–2007. The Programme is guided by the General Assembly and its subsidiary organs that include
     the Governing Council and the Committee of Permanent Representatives to UN-Habitat. UN-Habitat serves
     as the focal point for human settlements in the United Nations system, as mandated by the General Assembly
     in its resolution 56/206; provides support to its Governing Council in keeping the human settlements
     programme under appraisal; assists Member States in providing, through the Governing Council, the
     Economic and Social Council and the General Assembly, a coordinated mechanism for promoting and
     monitoring the implementation of the Habitat Agenda and the Millennium Declaration targets on slums and
     water and sanitation; assists the Secretary-General in enhancing the policy coherence and coordination of the
     human settlements programme; enhances cooperation and partnerships with local authorities,
     non-governmental organizations, the private sector and major groups in civil society in the implementation of
     the Habitat Agenda at the global, regional, national and local levels; provides advisory services at the request
     of Member States, focusing on enhancing in-country capacity to realize adequate shelter for all and
     sustainable human settlements development; and facilitates mobilization of financing of housing and basic
     infrastructure.

A.   Structure of the programme
     64.      In keeping with the strategic framework for the period 2006–2007, the work of UN-Habitat during
     the period 2006–2007 biennium, will continue to be organized around four subprogrammes, which reflect the
     recommendations of the second United Nations Conference on Human Settlements, held in Istanbul, Turkey,
     from 3 to 14 June 1996 (Habitat II) and the Habitat Agenda, the United Nations Millennium Declaration, the
     Declaration on Cities and Other Human Settlements in the New Millennium, and also the relevant
     recommendations and commitments of the World Summit on Sustainable Development. The
     subprogrammes under the human settlements programme are as follows:
             •     Subprogramme 1: Shelter and sustainable human settlements development
             •     Subprogramme 2: Monitoring the Habitat Agenda
             •     Subprogramme 3: Regional and technical cooperation
             •     Subprogramme 4: Human settlements financing

B.   Course of action
     65.      UN-Habitat will focus its resources and activities on the attainment of the Millennium Declaration
     targets as set forth in General Assembly resolution 55/2 of 8 September 2000. In particular, the Global
     Campaign for Secure Tenure and the Global Campaign on Urban Governance will continue to guide the
     efforts to implement relevant goals of the Millennium Declaration, that is, achieving a significant
     improvement in the lives of at least 100 million slum dwellers by the year 2020, as well as reducing by half
     the proportion of people without access to safe drinking water and sanitation by the year 2015. The Shelter
     and Sustainable Human Settlements Development Division will carry out both advocacy and normative
     activities through the Programme’s global campaigns. The Global Campaign on Secure Tenure will continue
     to spearhead a global strategy that promotes secure tenure for all, partnership with the urban poor as well as
     inclusive and sustainable human settlements policies. In keeping with the provisions of Governing Council
     resolution 19/16, the campaign will continue to promote the rights of women as essential to successful shelter
     policies. The Campaign on Urban Governance will continue to promote accountable and transparent urban
     governance that responds and benefits all sectors of society, particularly the urban poor.




                                                                                                                  25
HSP/GC/20/9

              66.      The Monitoring and Research Division will continue to monitor progress made in the implementation
              of the Habitat Agenda and the Millennium Declaration targets on slums, water and sanitation. This will be
              done by gathering, analysing and disseminating global data and information on human settlements and
              urbanization, as well as collating and disseminating knowledge on urban economies. The Division will also
              identify best practices, test and mainstream gender and partners, including youth, in human settlements
              programmes and projects. Through the Regional and Technical Cooperation Division, UN-Habitat will
              undertake field operations that combine technical assistance and capacity-building projects designed to test
              methods and concepts that may later be scaled up by governments. Habitat Programme Managers will
              promote the mainstreaming of urban issues in United Nations development assistance frameworks and
              poverty reduction strategy programmes. They will serve as in-country liaison officers for UN-Habitat, with
              special responsibility for monitoring the implementation of the slum target of the Millennium Declaration, the
              Habitat Agenda and the global campaigns and programmes in their countries. Finally, through the Human
              Settlements Financing Division, the Programme will facilitate financing of housing and basic infrastructure
              development, focusing on the improvement of the lives of slum dwellers on a large scale. UN-Habitat will
              continue to position itself as a broker between governments at all levels and international finance institutions
              to promote the development of affordable housing and infrastructure.

      C.      Significant changes
              67.      In line with the strategic framework for 2006–2007, there will be no significant changes in either
              programmatic or resource requirements. Youth is emerging as an important and cross-cutting stakeholder
              group in human settlements development and sustainable urbanization. It is increasingly being recognized
              that, given the right opportunities, young people can be effective agents of change. Accordingly, in 2006–
              2007, more effort will be placed on mainstreaming youth in UN-Habitat normative and operative
              programmes. A road map will also be developed for the promotion of urban youth empowerment and
              participation in the implementation of the Habitat Agenda and relevant Millennium Declaration targets.
              UN-Habitat will also put more emphasis on activities in the area of disaster preparedness and management
              and post-crisis reconstruction, following its inclusion in ECHA, in recognition of its mandate as a link
              between emergency relief, stabilization and reconstruction. A special feature of the UN-Habitat strategy will
              be to highlight the role of women in the efforts to improve shelter conditions and urban governance.

      D.      Partners
              68.      UN-Habitat will serve as the focal point for the implementation of the programme within the United
              Nations system and will collaborate and cooperate with Governments and other United Nations organizations,
              including the Department of Economic and Social Affairs of the Secretariat, the Office of the United Nations
              High Commissioner for Human Rights, the Economic Commission for Africa, the Economic Commission for
              Europe, the Economic Commission for Latin America and the Caribbean, the Economic and Social
              Commission for Asia and the Pacific, the Economic and Social Commission for Western Asia, the United
              Nations Development Programme (UNDP), the United Nations Office for Project Services (UNOPS), the
              United Nations Children’s Fund (UNICEF), the United Nations Environment Programme (UNEP), the Office
              of the United Nations High Commissioner for Refugees (UNHCR), the United Nations Relief and Works
              Agency for Palestine Refugees in the Near East (UNRWA), the Food and Agriculture Organization of the
              United Nations (FAO), the World Health Organization (WHO), the World Bank, the United Nations
              Industrial Development Organization (UNIDO), the Global Environment Facility (GEF), the United Nations
              Office on Drugs and Crime (UNODC), the United Nations Institute for Training and Research (UNITAR),
              the International Labour Organization (ILO) and the Joint United Nations Programme on HIV/AIDS
              (UNAIDS). Outside the United Nations, UN-Habitat will cooperate with Governments, local authorities,
              other Habitat Agenda partners, international financial institutions and regional development banks.
              69.      The pursuit of partnership is one of the ten principles embedded in the Habitat Agenda and
              UN-Habitat has continuously encouraged collaboration and partnership among all sectors of society and
              among all those involved in decision-making processes for development. In its own work, UN-Habitat has
              joined many different categories of partners to form alliances, pool resources, share knowledge, contribute
              skills and capitalize on the comparative advantages of collective action. Many of the Programme’s
              partnerships bring direct cost savings either through cash or in-kind contributions or by reducing opportunity
              costs, enabling it to use available resources for activities that are complemented by partners’ contributions.




26
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VI. Policy-making organs
     70.     In its resolution 56/206 of 21 December 2001 the General Assembly transformed the Commission on
     Human Settlements into the Governing Council of UN-Habitat, a subsidiary body of the General Assembly,
     with effect from 1 January 2002. The Governing Council reports to the General Assembly through the
     Economic and Social Council and provides overall policy guidance, direction and supervision to UN-Habitat.
     The Committee of Permanent Representatives to UN-Habitat was also transformed into an intersessional
     subsidiary body of the Governing Council. The objectives, functions and responsibilities of the Governing
     Council are set out in General Assembly resolution 32/162 of 19 December 1977 and in paragraph 222 of the
     Habitat Agenda, which was adopted at the Habitat II Conference.
     71.      The Governing Council is composed of 58 Member States, which have a membership term of four
     years. It holds its regular sessions biennially at the headquarters of UN-Habitat in Nairobi. During these
     sessions, the Governing Council reviews the biennial programme of work of UN-Habitat, the budget of the
     United Nations Habitat and Human Settlements Foundation and the operational activities carried out by
     UN-Habitat. The sessions bring together representatives of Member States and Habitat Agenda partners,
     including local authorities, non-governmental organizations, the private sector, the Global Parliamentarians on
     Habitat, women’s groups, Youth for Habitat, trade unions, professionals and researchers, foundations and
     academies of science. The Committee of Permanent Representatives normally meets eight times during each
     biennium, while its three working groups each meet once a month, making a total of approximately 70
     meetings. The Governing Council, its intersessional subsidiary body, the Committee of Permanent
     Representatives and the Committee’s three working groups are serviced by the secretariat of the Governing
     Council, External Relations and Inter-Agency Affairs Section of UN-Habitat.
     Resource requirements
     72.    The estimated resource requirements by source of funding for this area are set out in the following
     table.
     Table 12. Summary budget estimates by expenditure category and source of
     funds, budget for the biennium 2006–2007 (in thousands of US dollars):
     policy-making organs

                  Source of funds                     2004–2005                  Change              2006–2007
                Expenditure category                  Approved           Amount           %          Estimates
                                                   appropriations


       United Nations regular budget
         Staff costs                                              19.6          -       0.0%                19.6
         Non-staff costs                                           5.2          -       0.0%                 5.2
                                       Total                      24.8          -       0.0%                24.8




VII. Executive direction and management
A.   Objective
     73.      The overall objective of the Office is to improve coherence and direction in the implementation of the
     legislative mandate and approved work programme of UN-Habitat.

B.   Implementation responsibility
     74.      Responsibility for implementing the programme of work below rests with the Office of Executive
     Direction and Management. To ensure that expected accomplishments are realized, the efforts of the office
     will be focused on supporting the Executive Director in providing overall guidance, monitoring the
     implementation of the work programme and partnerships as well as providing information on human
     settlements to the international community and all Habitat Agenda partners.

                                                                                                                   27
HSP/GC/20/9

                75.      The Office of Executive Direction and Management supports the Executive Director in providing
                overall direction and coordination, in managing implementation of the Programme’s work programme and in
                administering relations with Member States, United Nations offices, bodies, programmes, funds, agencies and
                other Habitat partners in coordinating the system-wide implementation of the Habitat Agenda and the
                Millennium Declaration targets The Monitoring and Evaluation Unit is responsible for monitoring the
                implementation of the work programme and evaluating the activities of the programme. In addition, the office
                provides information, press and media outreach to the international community and all Habitat Agenda
                partners, and plans and executes major global, regional and national events. The office is also responsible for
                the coordination of fund-raising activities. The liaison offices of UN-Habitat in Geneva, Brussels and New
                York also fall under the Office of Executive Direction and Management. They represent the Programme at
                intergovernmental, inter-departmental and inter-agency meetings and provide substantive support in meetings
                and policy advice on human settlements, as well as carrying out outreach activities.
                Table 13.     Expected accomplishments and indicators of achievement

              Expected accomplishments                                      Indicators of achievement

      (a)   Enhanced policy coherence in the       (a) (i)      Integration of UN-Habitat inputs into system-wide policy
            management of the human                             documents and reports and a more strategic focus in the policy
            settlement activities of the United                 prescriptions proposed by the various programmes and other
            Nations system and strengthened                     activities of UN-Habitat.
            relationship with key partners
                                                                Dec. 2003:
                                                                Limited focus on human settlements and UN-Habitat in key
                                                                policy documents and activities of the United Nations system.

                                                                Dec. 2005:
                                                                Better reporting by the United Nations on human settlements-
                                                                related Millennium Declaration targets and more coordination
                                                                by UN-Habitat at the intra-secretariat and inter-agency levels.

                                                                Dec. 2007:
                                                                Effective and consistent reflection of human settlements-
                                                                related Millennium Declaration targets by the United Nations
                                                                system

                                                       (ii)     Closer and more visible partnerships with key partners, in
                                                                particular local authorities and their associations.

                                                                Dec. 2005:
                                                                Adoption by the Governing Council at its twentieth session of
                                                                the international guidelines on decentralization developed by
                                                                the Advisory Group of Experts on Decentralization in
                                                                collaboration with the United Nations Advisory Committee of
                                                                Local Authorities


                                                                Dec. 2007:
                                                                Programme of cooperation between United Cities and Local
                                                                Governments on the work of the Advisory Group of Experts on
                                                                Decentralization, the Global Observatory of Local Democracy
                                                                and Decentralization and the United Nations Advisory
                                                                Committee of Local Authorities established and fully
                                                                operational

      (b)   Regular monitoring and evaluation      (b) (i)      Timely reporting on progress made in the implementation of the
            of the Implementation of the                        UN-Habitat work programme (2006–2007) to CPR
            UN-Habitat Work Programme,
            2006-2007



28
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                                                         Number of reports in Dec. 2003: ad hoc reports on 2
                                                         subprogrammes
                                                         Number of progress reports to CPR in Dec. 2005: Regular
                                                         reports on 4 subprogrammes
                                                         Number of progress reports to CPR in Dec. 2007:
                                                         Comprehensive and detailed reports produced as determined by
                                                         the CPR

                                                (ii)     Consistent and regular evaluation of UN-Habitat programmes

                                                         Number of reports Dec. 2003: ad hoc evaluations undertaken by
                                                         units of UN-Habitat
                                                         Number of evaluation reports per year Dec. 2005: 4
                                                         Number of evaluation reports per year Dec. 2007: 6

(c)   Improved access by key partners to    (c) (i)      Increased media coverage of human settlements issues in the
      current and relevant                               international and national press
      information on human settlements
      and UN-Habitat activities and                      Number of issues in national media per week Dec. 2003: 5
      enhance public awareness of human                  Number of issues in national media per week Dec. 2005: 3
      settlements and urbanization issues                Number of issues in national media per week Dec. 2007: 5

                                                         Number of issues in international media per week Dec. 2003: 3
                                                         Number of issues in international media per week Dec. 2005: 1
                                                         Number of issues in international media per week Dec. 2007: 5

                                                (ii)     Increased distribution of UN-Habitat publications

                                                         Number of publication copies in Dec. 2003: 77,510
                                                         Number of publication copies in Dec. 2005: 60,000
                                                         Number of publication copies in Dec. 2007: 90,000

                                                (iii)    Increased number of visitors to UN-Habitat public web sites

                                                         Number of visitors in Dec. 2003: 1.3 million
                                                         Number of visitors in Dec. 2005: 2 million
                                                         Number of visitors in Dec. 2007: 2.5 million



 C.      External factors
         76.    The Office of Executive Direction and Management is expected to achieve its objectives on the
         assumption that there will be adequate extrabudgetary resources to support all the activities.

 D.      Strategy
         77.     The strategy to accomplish the above targets will be as follows:
                 (a)      Policy products will be steadily improved to enhance and consolidate the leadership role of
         UN-Habitat in the formulation of system-wide human settlements policies and strategies, on the one hand, and
         improving policy coherence in the prescriptions offered in the various subprogrammes of the UN-Habitat
         work programme, on the other. This will imply strengthening and giving greater visibility to the strategic
         planning and policy and inter-organizational and political affairs functions of the office;
                 (b)      Similarly, a strengthened Monitoring and Evaluation Unit will have enhanced capacity not
         only to monitor the implementation of the work programme, but also to ensure that its evaluations of the
         various normative and operational activities of UN-Habitat feed back as lessons learned into the work
         programme;
                 (c)       The office will ensure that all Habitat Agenda partners have easy access to up-to-date
         information on human settlements issues, UN-Habitat programmes and the organization’s publications. It will
         also support the advocacy work of UN-Habitat through press and media outreach to the international
         community, major global, regional and national media events and the public web site. The office will provide
                                                                                                                    29
HSP/GC/20/9

                information and reference materials through a physical and virtual library. The UN-Habitat intranet will
                enhance in-house sharing of knowledge and activity trends;
                          (d)     Finally, during the 2006–2007 biennium, greater emphasis will be placed on strengthening
                the United Nations Advisory Committee of Local Authorities to make it a more effective instrument, both to provide
                policy advice to the Executive Director as well as serve as a link for collaboration with local authorities and
                their international associations in implementing the Millennium Declaration targets and the Habitat Agenda.

      E.        Outputs1
                78.      During the biennium, the Office of Executive Direction and Management will produce the following
                outputs:

                         1.       Servicing of intergovernmental and expert bodies

                         I.       Substantive servicing of meetings

                                  The following meetings will be serviced:
                                   (a)    Twenty-first session of the Governing Council of UN-Habitat (2007);
                                   (b)    Third session of the World Urban Forum (2006).

                         II.      Parliamentary documentation

                                  The following documents will be produced:
                                   (a)    Progress report of the Executive Director to the Governing Council at its twenty-first
                                          session (2007) (1) [2];
                                   (b)    Updated strategic policy document for the information of the Governing Council at its
                                          twenty-first session (2007) [1];
                                   (c)    Strategic policy document for the third session of the World Urban Forum (2006) [1];
                                   (d)    Report of the Executive Director on cooperation within the United Nations system and
                                          among Habitat Agenda partners (1) [1];
                                   (e)    Report of the Secretary-General to the General Assembly at its sixty-first and
                                          sixty-second sessions of the on the implementation of the Habitat Agenda (2) (2006
                                          and 2007) [2];
                                   (f)    Reports to the Economic and Social Council on the coordinated implementation of the
                                          Habitat Agenda (2) [2].

                         III.     Other services provided
                                  The following services will be provided:

                                   Expert group meetings
                                   The following expert group meetings will be arranged:
                                   (a)    Meetings of the United Nations Advisory Committee of Local Authorities (4) [1];
                                   (b)    Expert Advisory Group on Decentralization (2006–2007) [1]




      1
               The figures in round brackets ( ) denote number of outputs
      The figures in bold and square brackets [ ] denote the level of prioritization, priority [1] being the highest.

                [1]      = Priority 1
                [2]      = Priority 2
                [3]      = Priority 3

30
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             2.        Other substantive activities

             I.        Recurrent publications

                       (a)   Habitat Debate (12) [2];
                       (b)   UN-Habitat Annual Report (2) [2];

             II.       Non-recurrent publications

                       (a)   Programme performance report (1) [1]
                       (b)   Evaluation reports (8) [2]
                       (c)   Annual Report on the Evaluation Activities of UN-Habitat (2) [2]
                       (d)   Progress reports on implementation of the work programme to the Committee of
                             Permanent Representatives (4) [2]
                       (e)   Policy statements delivered at international meetings and conferences,
                             intergovernmental meetings or as inputs to system-wide policy documents and
                             statements (60) [2].

             III.      Electronic, audio and video issuances

                       Electronic and print catalogue of all UN-Habitat publications, audio and video issuances,
                       including films, videotapes, radio broadcasts, tapes of news, documentary and feature
                       programmes on human settlement issues, projects and events such as the World Urban
                       Forum and World Habitat Day [2].

              IV.      Press releases and press conferences

                       Press releases on topical human settlement issues, and speeches on United Nations
                       international days, media interviews of the Executive Director [2].

              V.       Booklet, pamphlets, fact sheets:

                       Booklets, pamphlets, fact sheets, information kits for World Habitat Day and the third
                       session of the World Urban Forum [2].

              VI.      Exhibits

                       Exhibitions on World Habitat Day, World Urban Forum III and other significant events,
                       guided tour and lecturers [2].

              VII.     Technical materials

                       (a)   Evaluation database (electronic depository of operational and normative work of UN-
                             Habitat) [1]
                       (b)   CD-ROM containing full text of key publications for partners (1) [2]
                       (c)   Interactive UN-Habitat web site including discussion forum (1) [2]
                       (d)   Archives policy and records management system (1) [2]
                       (e)   Tools for supporting evaluation activities (1) [2]

F.   Resource requirements
     79.       The estimated resource requirements by source of funding and corresponding proposed staffing table
     for this section are provided below. The non-staff costs required to support the activities under this section are
     comprised of costs associated with consultants, travel, contractual services, general operating expenses,
     supplies and materials, furniture and equipment and support to the United Nations Office at Nairobi.

                                                                                                                     31
HSP/GC/20/9



       Table 14. Summary budget estimates by expenditure category and source of funds,
       budget for the biennium 2006–2007 (in thousands of US dollars): Executive Management
       and Administration

               Source of funds                           2004–2005                      Change                      2006–2007

                Expenditure category                       Approved                Amount                 %         Estimates
                                                         appropriations

 United Nations regular budget
  Staff costs                                                     2,757.9           -            -                        2,757.9
  Non-staff costs                                                   232.7           -            -                          232.7
                                                                  2,990.6           -            -                        2,990.6
 Foundation general purpose
  Staff costs                                                     1,109.2           256.0         23.1                    1,365.2
  Non-staff costs                                                 2,847.0        (1,536.5)       (54.0)                   1,310.5
                                                                  3,956.2        (1,280.5)       (32.4)                   2,675.7
 Foundation special purpose
   Established posts
   Non-post items                                                    336.0          628.7        187.1                     964.7
                                                                     336.0          628.7        187.1                     964.7

 Technical cooperation
  Staff costs
  Non-staff costs                                                 1,114.0         (627.7)        (56.3)                    486.3
                                                                  1,114.0         (627.7)        (56.3)                    486.3
  Total for Management and Administration
   Staff Costs                                                    3,867.1           256.0          6.6                    4,123.1
   Non-staff costs                                                4,529.7        (1,535.5)       (33.9)                   2,994.2
                                      Total
                                                                  8,396.8        (1,279.5)       (15.2)                   7,117.3




                Post distribution for the biennium 2006–2007 for Executive Management and
                Administration by funding and level
                                                                                                                           Grand
                                               USG        D-1    P-5   P-4       P-3 P–2/1 Total              L-L Other     total

 2004–2005
 United Nations regular budget                       1      2      1         1     1                  6         4   2       12
 Foundation general purpose                                                  3     1                  4         3            7
                         2004–2005 subtotal          1      2      1         4     2         -       10         7   2       19

 Changes (decrease)/increase
 Foundation general purpose                                  -     1      (1)       -        -       -          -   1        1
                                 Net changes    -            -     1      (1)       -        -       -          -   1        1

 2006–2007
 United Nations regular budget                       1      2      1         1     1            6               4   2       12
 Foundation general purpose                                        1         2     1            4               3   1        8
                         2006–2007 subtotal          1      2      2         3     2         - 10               7   3       20




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 VIII. Programme of work
 A.     Subprogramme 1: Shelter and sustainable human settlements development

 1.     Legislative mandate
        80.    The legislative mandate for subprogramme 1 is provided by the following Governing Council and
        General Assembly resolutions:
                 (a)       Governing Council resolutions 16/7, on the realization of the human right to adequate
        housing; 17/10, on the rural dimension of sustainable urban development; 18/3, on the global campaigns on
        secure tenure and urban governance; 18/4, on the implementation of General Assembly resolution 53/242 and
        cooperation between the United Nations Centre for Human Settlements (Habitat) and the United Nations
        Environment Programme (subprogrammes 1–3); 18/5, on international cooperation and the review of
        mechanisms for monitoring the implementation of the Habitat Agenda; 18/11, on intensifying dialogue on
        effective decentralization and strengthening of local authorities within the framework of the Habitat Agenda;
        19/3, on the global campaigns on secure tenure and urban governance; 19/4, on cooperation between the
        United Nations Human Settlements Programme and the United Nations Environment Programme; 19/12, on
        the decentralization and strengthening of local authorities; 19/5, on implementing and monitoring the goal of
        the United Nations Millennium Declaration on improving the lives of slum-dwellers; 19/6, on water and
        sanitation in cities; and 19/16, on women’s role and rights in human settlements development and slum
        upgrading;
                (b)      General Assembly resolutions 53/242, on the report of the Secretary-General on
        environment and human settlements; 54/232, on implementation of the first United Nations Decade for the
        Eradication of Poverty; 55/2, on the United Nations Millennium Declaration; 57/144, on follow-up to the
        outcome of the Millennium Summit; S–25/2, on the Declaration on Cities and Other Human Settlements in
        the New Millennium; 58/217, on the International Decade for Action, “Water for Life”, 2005–2015; 58/218,
        on implementation of Agenda 21, the Programme for the Further Implementation of Agenda 21 and the
        outcomes of the World Summit on Sustainable Development; and 58/222, on implementation of the First
        United Nations Decade for the Eradication of Poverty (1997–2006)

 2.     Objective
        81.     The overall objective of the subprogramme is to improve the shelter conditions of the world’s poor
        and to ensure sustainable human settlements development.

 3.     Implementation responsibility
        82.      Responsibility for implementing the subprogramme rests with the Shelter and Sustainable Human
        Settlements Development Division (the Global Division). To ensure that the expected accomplishments will
        be achieved, the subprogramme's efforts will mainly focus on global advocacy on the two global campaigns
        on secure tenure and urban governance as well as on the Millennium Declaration targets on slums, water and
        sanitation. The other global programmes will be carried out within the context of the campaigns.

 Table 15.      Expected accomplishments and indicators of achievement

Expected accomplishments                                            Indicators of achievement
(a)   Improved regulatory frameworks      (a)    (i)     Increased number of Governments and local authorities
      and capacities that provide:                       introducing and implementing slum upgrading policies in line
      security of tenure; progressive                    with the Millennium Declaration target on slums
      realization of land, housing and
      property rights; and increased                     Number of Governments and local authorities in Dec. 2003:
      supply of higher quality                           8 and 4
      affordable housing for the poor,                   Number of Governments and local authorities in Dec. 2005: 16
      including women and HIV/AIDS                       and 9
      orphans, especially in slums                       Number of Governments and local authorities in Dec. 2007: 19
                                                         and 13

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                                                          (ii)    Increased number of Governments adopting regulatory
                                                                  frameworks for the progressive realization of land, housing and
                                                                  property rights, including women’s property rights

                                                                  Number of Governments in Dec. 2003: 12
                                                                  Number of Governments in Dec. 2005: 20
                                                                  Number of Governments in Dec. 2007: 27

                                                          (iii)   Increased number of Governments adopting policies and
                                                                  procedures for more open and affordable housing and land
                                                                  markets

                                                                  Number of Governments in Dec. 2003: 12
                                                                  Number of Governments in Dec. 2005: 20
                                                                  Number of Governments in Dec. 2007: 27

                                                          (iv)    Increased number of Governments and local authorities
                                                                  introducing measures and policies to reduce forced evictions

                                                                  Number of Governments and local authorities in Dec. 2003:
                                                                  8 and 4
                                                                  Number of Governments and local authorities in Dec. 2005:16
                                                                  and 9
                                                                  Number of Governments and local authorities in Dec. 2007:19
                                                                  and 13

      (b)     Improved capacity for delivering     (b)   (i)      Increased number of cities implementing UN-Habitat-
              and managing affordable, reliable                   supported policies, strategies and programmes for increasing
              urban infrastructure and basic                      access of the urban poor to infrastructure
              services, especially drinking
              water, sanitation, waste                            Number of cities in Dec. 2003: 14
              management and public transport
                                                                  Number of cities in Dec. 2005: 21
                                                                  Number of cities in Dec. 2007: 24

                                                          (ii)    Increased number of countries and cities implementing
                                                                  policies, strategies and programmes designed to increase access
                                                                  of the urban poor to more reliable drinking water and sanitation

                                                                  Number of Governments and cities in Dec. 2003: 14
                                                                  and 14
                                                                  Number of Governments and cities in Dec. 2005:21
                                                                  and 36
                                                                  Number of Governments and cities in Dec. 2007:24
                                                                  and 39

                                                          (iii)   Number of countries working with UN-Habitat to promote
                                                                  access to diverse and efficient public and non-motorized
                                                                  transport

                                                                  Number of countries in Dec.2003: 3
                                                                  Number of countries in Dec.2005: 5
                                                                  Number of countries in Dec. 2007: 7

      (c)     Improved capacity for urban          (c)            Increased number of countries and cities introducing and
              governance, including                               implementing policies, legislation and action plans and
              decentralization and subsidiarity,                  strengthening institutional planning and management
              inclusiveness, stakeholder                          arrangements for promoting good urban governance
              participation, partnership,
              transparency and accountability,                    Number of countries and cities in Dec.2003: 33 and 70
              citizenship, efficiency and                         Number of countries and cities in Dec. 2005: 41 and 90
              effective local leadership                          Number of countries and cities in Dec. 2007: 56 and 120

34
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(d)   Improved capacity for more           (d)    (i)     Increased number of Governments and cities working with
      environmentally sustainable                         UN-Habitat to promote environmentally sustainable urban
      urban developments that are safer                   development and safer cities
      and less prone to disaster and
      better able to manage                               Number of Governments and cities in Dec. 2003: 13
      post-conflict and post-disaster                     Governments and 42 cities
      situations                                          Number of Governments and cities in Dec.2005: 21
                                                          Governments and 60 cities
                                                          Number of Governments and cities in Dec. 2007: 22
                                                          Governments and 89 cities

                                                  (ii)    Increased number of Governments and cities undertaking
                                                          management of post-conflict and postdisaster situations
                                                          through programme agreements for human settlements’
                                                          rehabilitation


                                                          Number of Governments and cities in Dec.2003: 20 countries
                                                          and 2 global activities.

                                                          Number of Governments and cities 2005: The number of
                                                          countries cannot be pre-determined, as it is difficult to predict
                                                          the incidence of disaster situations beforehand. This number
                                                          can be defined only in December 2005, which will then
                                                          formulate the baseline data for the biennium 2006–2007

                                                          Number of Governments and cities in Dec. 2007:
                                                          The number of countries cannot be predetermined, as it is
                                                          difficult to predict the incidence of disaster situations.




 4.    Strategy
       83.    The subprogramme’s main strategy will be global advocacy, focusing on two global campaigns: the
       Global Campaign for Secure Tenure and the Global Campaign on Urban Governance, as follows:
                (a)       The two campaigns will be aligned with efforts to implement the goals of the Millennium
       Declaration as set forth in General Assembly resolution 55/2, particularly on achieving significant
       improvement in the lives of at least 100 million slum dwellers by the year 2020 as well as reducing by half the
       proportion of people without access to safe drinking water by the year 2015. The campaigns will mobilize all
       Habitat Agenda partners in pursuit of these goals in order to achieve sustainable human settlements. There
       shall be an effort to enhance the global visibility of the campaigns;
                (b)       The global programmes entailing normative, capacity-building and knowledge management
       activities on secure tenure, shelter and housing and property rights, urban environment, water and sanitation,
       shelter and HIV/AIDS, and safer cities will be carried out within the context of the campaigns, thereby
       assisting to translate normative work into practical real life processes at national and community levels. Global
       programmes will, therefore support national campaign launches and the implementation of national campaign
       action plans through the development of new policies and tools;
                (c)        The capacity at national and local levels to contribute to planning, management and delivery
       of shelter, land, infrastructure and services will be supported by a dedicated capacity-building programme, at
       the request of Governments; and
              (d)       A special feature of the strategy will be to focus on the role of women as active participants
       and beneficiaries in the efforts to improve shelter conditions and urban governance.




                                                                                                                       35
HSP/GC/20/9

      5.      External factors
              84.    The subprogramme is expected to achieve its objectives and expected accomplishments on the
              assumption that:
                     (a)     There is political will and commitment to promote sustainable shelter and human settlements
              development and implement policies with UN-Habitat advice and assistance;
                      (b)       The extrabudgetary resources required will be made available; and
                      (c)       Member States will respond positively to the guidelines and recommendations provided, and
              specifically ensure the availability of financial resources and supportive legal, institutional and policy
              frameworks needed to sustain the policies and strategies initiated or supported through UN-Habitat activities.

      6.      Outputs2
              85.     During the biennium, the subprogramme on shelter and sustainable human settlements development
              will produce the following outputs:

                       1.       Servicing of intergovernmental and expert bodies

                                The following meetings will be serviced:

                       I.       Substantive servicing of meetings

                               (a)   Third session of the World Urban Forum (2006) (9)

                               (b)   Twenty-first session of the Governing Council (2007) (7)

                       II.      Parliamentary documentation

                               (a)   Documentation for the third session of the World Urban Forum 2006) (9)
                               (b)   Documentation for the twenty-first session of the Governing Council (2007) (7)
                               (c)   Documentation for the Commission on Sustainable Development (2006, 2007)
                               (d)   Contribution to the UNEP twenty-fourth Governing Council and Environmental
                                     Management Group (2) [1]

                      III.      Other services provided

                                The following services will be provided:

                                Expert group meetings

                               (a)   Meetings of the Advisory Group on Forced Evictions (2) [1]
                               (b)   Implementing and monitoring the goal of the United Nations Millennium Declaration
                                     on improving the lives of slum dwellers (1) [1]
                               (c)   Ad hoc expert groups on land tenure and management, including women’s equal tenure
                                     (1) [1]
                               (d)   Global Campaign for Secure Tenure (1) [1]
                               (e)   Assistance on land administration to intergovernmental bodies and/or United Nations
                                     representatives, including the World Bank (2) [2]

      2
              The figures in round brackets ( ) denote number of outputs
              The figures in bold and square brackets [ ] denote the level of prioritization, priority [1] being the highest.

                  [1] = Priority 1
                  [2] = Priority 2
                  [3] = Priority 3

36
                                                                                      HSP/GC/20/9


      (f)   Expert group meetings/seminars on effective enabling shelter strategies, including
            cooperative housing, and the progressive realization of the human right to adequate
            housing (2) [2]
      (g)   Provision of support to the United Nations Committee on Economic, Social and
            Cultural Rights on housing rights monitoring (1) [2]
      (h)   Regional Ministerial Conference (1) [2]
      (i)   Regional Conference of Mayors (1) [2]
      (j)   United Nations Advisory Group on Local Authorities (2) [2]
      (k)   Expert group meetings for land, water, decentralization and adaptation and application
            of tools (4). [1]
      (l)   Meetings of the International Steering Group of the Global Campaign on Urban
            Governance (2) [3]
      (m) Thematic expert group meeting on urban crime prevention in Latin America and Asia
             (2) [2]
      (n)   Partnership meeting on urban Environmental Planning Management in support of
            “Coalition for Sustainable Urbanization” (1) [2]
      (o)   Expert group meeting on Watsan Trust Fund (2) [1]
      (p)   International meeting of UN-Habitat partners on addressing the shelter dimension of
            HIV/AIDS (2006) (1) [2];

IV    Assistance to representatives/rapporteurs

      (a)   Provision of support to the United Nations Special Rapporteur on adequate housing (1)
            [3]

2.     Other substantive activities

       The following activities will be undertaken:

I.     Recurrent publications

      (a)   The State of Water and Sanitation in the World’s Cities (1) [1]
      (b)   Water and Cities Quarterly Newsletter (8) [2]
      (c)   Annual Report Documenting Cases of Unlawful Evictions (2) [1]

II.    Non-recurrent publications

      (a)   Report on the progressive realization of the human right to adequate housing (based on
            housing rights indicators) (1) [2]
      (b) Report on lessons from experiences with slum upgrading policies, programmes and
            projects (1) [3]
      (c)   Updated compilations of national housing rights legislation (2) [3]
      (d) Updated compilations of case law and adjudication on housing rights (2) [3]
      (e)   Report on “Citywide Slum-upgrading – Lessons learnt from the City-Without-Slums
            subregional programme for Eastern and Southern Africa” (1) [2]
      (f)   Publications on land in different legal systems (2) [1];
      (g) Publications on Land Tenure Systems Law and Land Reform Review Series (4) [1]
      (h) Regional crime prevention papers (Asia, Africa, LAC) [3]
      (i)   Regional-thematic reports on urban environmental issues (3) [3]
      (j)   Paper on land governance (1) [1]
                                                                                                  37
HSP/GC/20/9

                     (k) Paper on participatory budgeting (1) [1]
                     (l)   Publications on water, sanitation, energy and transport (6) [2]

              III.    Booklet, pamphlets and fact sheets

                     Booklets, pamphlets, fact sheets, information kits on the Global Campaign for Secure Tenure
                     and Cities Without Slums Regional Programme (2) [3]

              IV.     Technical materials
                     (a)   Tools/guidelines for national/local governments and other stakeholders for the
                           development of effective enabling shelter strategies (1) [3]
                     (b)   Tools/guidelines for improving conditions in rental housing markets, including
                           model leases and good practice guidelines (1) [2]
                     (c)   Gender-sensitive, affordable tools on land management and land administration;
                           Tools on secure tenure and access to land (2) [1]
                     (d)   Tools/guidelines on slum upgrading frameworks (1) [3]
                     (e)   Updated guidelines on how to undertake a national campaign for secure tenure
                           (1) [2]
                     (f)   Guidelines on promoting local authority and community partnerships for the
                           provision of shelter including slum upgrading (1) [3]
                     (g)   Best practices on decentralization (1) [3]
                     (h)   Tools on pro-poor governance of land and water (2) Adaptation and application
                           packages for transparency, local to local dialogues, land and water tool kits (4)
                           [1]
                     (i)   Safer Cities Toolkit and Training Module developed and tested in Africa, Latin
                           America and Asia. (1) [2]
                     (j)   Youth training module developed and tested in Africa, Latin America and Asia
                           (1) [2]
                     (k)   Development and testing of process indicators and impact measuring indicators
                           for Safer Cities initiatives (1) [2]
                     (l)   Tools for improved urban environmental planning management (2) [3]
                     (m) Global environmental planning management tools adapted/translated at local
                         level (4) [3]
                     (n)   Guidelines/tools to operationalize UN-Habitat guiding principles for Sustainable
                           Relief (1) [2]
                     (o)   Documented crisis/disaster management experiences with established
                           methodologies and practices for sustainable settlements rehabilitation,
                           reconstruction and vulnerability reduction (1) [2]
                     (p)   Tool/guidelines/policy documents on sustainable settlements rehabilitation,
                           reconstruction, vulnerability reduction and disaster preparedness toolkit. (4) [2]
                     (q)   National adaptations of manuals on leadership roles and competencies (1) ;
                           Collaboration between local government and civil society organizations through
                           participatory planning and managing conflict and differences (10) [2];
                     (r)   Training manual on participatory budgeting as an interface resource
                           accompanying the campaign’s flagship tools on the same topic (1) [2]
                     (s)   Tools on alternatives to forced eviction [1]
                     (t)   Water and sanitation toolkits; Millennium Development Goal monitoring
                           manual; rainwater harvesting manual; sanitation field guide book (8) [2]
                     (u)   Tools/indicators for monitoring the shelter situation of HIV/AIDS victims




38
                                                                                        HSP/GC/20/9

3.     Technical cooperation

       The following services will be delivered:

I.     Advisory services
      (a)   Improving national shelter policies, programmes and projects; focusing on housing
            developments, land and property administration and coordination and secure tenure,
            particularly favouring women (8) [1]
      (b)   Monitoring the improvement of local governance (2) [1]
      (c)   National campaign launches related action plans to promote good governance in 10
            countries. [1]
      (d)   Facilitating the application of norms of improved local governance in selected countries
            (4) [1]
      (e)   Environmental planning management advisory/capacity-building/ monitoring missions
            to local authority partners (35) [3]
      (f)   International cooperation/inter-agency coordination on joint urban environmental
            planning management /Sustainable Cities Programme initiatives with UNEP (3) [1]
      (g)   Cooperation with ILO on the “better services- more jobs” programme (3) [2]
      (h)   Cooperation with UNDP public-private partnership for the urban environment on
            innovative partnerships for better urban environmental services (2) [2]
      (i)   Advisory service to national training and capacity-building institutions on tools
            adaptation, training design and delivery, and capacity-building strategies to strengthen
            local authorities (15) [1]
      (j)   Water and sanitation services to 16 countries in Africa and 8 countries in Asia Pacific
            (24) [1]
      (k)   Provision of technical support to the Alliance of Mayors and Local Authority
            Associations Against HIV/AIDS in reviewing national legal and institutional
            frameworks on local government and HIV/AIDS and developing community-based
            shelter initiatives for HIV/AIDS orphans. [2]
      (l)   National activities for the Global Campaign for Secure Tenure, including support to
            situation analysis, consensus building, action planning, high-level launches and
            implementation of action plans (12) [1]

II.    Group training
      (a)   Tools for enhancing women’s engagement in local governance (10) [1]
      (b)   Enhancing the engagement of youths in urban governance (10) [2]
      (c)   City activities for the Cities Without Slums subregional programme, including support
            to city situation analysis, consensus building, action plans and implementation (12) [2]
      (d)   Training provided to Safer Cities coordinators and municipal officials on Safer Cities
            toolkit in the three regions (3) [2]
      (e)   Environmental planning management capacity-building workshops with national urban
            institutions (4) [2]
      (f)   Environmental planning management support functions, expertise and curricula
            development anchored in national and subregional urban institutions (3) [3]
      (g)   Training of national and local governments in developing human settlements policies
            for natural and human-made disaster reconstruction areas [2]
      (h)   Regional and national training of trainers workshops on (i) leadership roles and
            competencies (1); (ii) collaboration between local government and civil society
            organizations through participatory planning and managing conflict (1); (iii) local
            economic development (1); (iv) local government financial management (1) [1]
      (i)   Training component of water for Asian and African cities projects (8) [1]



                                                                                                      39
HSP/GC/20/9

                      III.        Field projects
                                (a)   Regional water and sanitation programmes in Africa and Asia including field projects
                                      (8) [1]
                                (b)   Formulation, execution, backstopping and evaluation of Safer Cities projects (16) [2]
                                (c)   Environmental planning management projects and replications in support of local
                                      authorities improving environmental services and better management by the urban
                                      environment (35) [2]
                                (d)   Projects to respond to natural and human-made disasters [2]
                                (e)   Support to water and sanitation projects in countries in Africa and Asia and the Pacific
                                      (24) [1]
                                (f)   Capacity-building projects on local economic development (5 cities) [2]
       7.       Resource requirements
                86.       The estimated resource requirements by source of funding and corresponding proposed staffing table
                for this section are provided below. The non-staff costs required to support the activities under this section are
                comprised of costs associated with consultants, travel, contractual services, general operating expenses,
                supplies and materials, furniture and equipment and support to the United Nations Office at Nairobi.
       Table 16. Summary budget estimates by expenditure category and source of funds, budget
       for the biennium 2006–2007 (in thousands of US dollars): Subprogramme 1: Shelter and
       sustainable human settlements development

            Source of funds                         2004–2005                        Change                     2006–2007
              Expenditure category                  Approved                    Amount                %          Estimates
                                                   appropriations

United Nations regular budget
  Staff costs                                                     5,417.9           -                 -                5,417.9
  Non-staff costs                                                   490.5           -                 -                  490.5
                                                                  5,908.4           -                 -                5,908.4
Foundation general purpose
  Staff costs                                                     5,357.8         425.4              7.9               5,783.2
  Non-staff costs                                                 2,648.1         842.6             31.8               3,490.7
                                                                  8,005.9       1,268.0             15.8               9,273.9
Foundation special purpose
  Staff costs
  Non-staff costs                                                 9,232.3      11,001.7            119.2              20,234.0
                                                                  9,232.3      11,001.7            119.2              20,234.0
Total for subprogramme
  Staff costs                                                    10,775.7        425.4               3.9              11,201.1
  Non-staff costs                                                12,370.9      11,844.3             95.7              24,215.2
                                      Total                     23,146.6      12,269.7             53.0              35,416.3




40
                                                                                                                  HSP/GC/20/9


       Post distribution for the biennium 2006–2007 for subprogramme 1: Shelter and
       sustainable human settlements development by funding and level

                                                      Professional category and above                                     Grand
                                              D–2       D-    P-5    P-4    P-3     P– Total L-L           Other          Total

2004–2005
 United Nations regular budget                            1     4      7      5    3      20       9                        29
 Foundation general purpose                       1       3     3      4      5    2      18      12          2             32
 Foundation special purpose                               1     1             1           3        1                         4
 Technical cooperation                                                             4      4                                  4
                     2004–2005 subtotal           1       5     8     11     11    9      45      22          2             69

 Changes (decrease)/increase
 United Nations regular budget                    -       -      -   (1)       -    -     (1)      -          -             (1)
 Foundation general purpose                       -     (1)      -     -       -    -     (1)    (1)          -             (2)
 Foundation special purpose                       -     (1)      -     -       -    -     (1)      -          -             (1)
 Technical cooperation                            -       -      -     -       -    -      -       -          -              -
                            Net changes           -     (2)      -   (1)       -    -     (3)    (1)          -             (4)

2006–2007
 United Nations regular budget                            1     4      6      5    3      19       9                        28
 Foundation general purpose                       1       2     3      4      5    2      17      11          2             30
 Foundation special purpose                                     1             1           2        1                         3
 Technical cooperation                                                             4      4                                  4
                     2006–2007 subtotal           1       3     8     10     11    9      42      21          2             65



       B.      Subprogramme 2: Monitoring the Habitat Agenda

       1.      Legislative mandate
               87.    The legislative mandate for subprogramme 1 is provided by the following Governing Council,
               General Assembly and Economic and Social Council resolutions:
                        (a)     Governing Council resolutions 17/8, on The State of the World Cities: 1999; 17/10, on the
               rural dimension of sustainable urban development; 18/4, on implementation of General Assembly resolution
               53/242 and cooperation between the United Nations Centre for Human Settlements (Habitat) and the United
               Nations Environment Programme; 18/10, on the role of local authorities; 19/5, on implementing and
               monitoring the goal of the United Nations Millennium Declaration on improving the lives of slum-dwellers;
               19/6, on water and sanitation in cities; 19/10, on urban-rural linkages and sustainable urbanization; 19/13, on
               enhancing the engagement of youth in the work of UN-Habitat; and 19/16, on women’s role and rights in
               human settlements development and slum upgrading;
                       (b)       General Assembly resolutions 34/114, on the global report on human settlements and
               periodic reports on international cooperation and assistance on human settlements; 55/194, on the scope to be
               covered by the special session of the General Assembly for an overall review and appraisal of the
               implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II), major
               United Nations conferences and summits; 54/232, on implementation of the first United Nations Decade for
               the Eradication of Poverty; 55/2, on the United Nations Millennium Declaration; 57/144 on follow-up to the
               outcome of the Millennium Summit; S–25/2, on the Declaration on Cities and Other Human Settlements in
               the New Millennium; 58/218, on implementation of Agenda 21, the Programme for the Further
               Implementation of Agenda 21 and the outcomes of the World Summit on Sustainable Development; 58/222,
               on implementation of the first United Nations Decade for the Eradication of Poverty (1997–2006); 58/226, on
               implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II) and the
               strengthening of the United Nations Human Settlements Programme (UN-Habitat); and 58/230, on follow-up
               to and implementation of the outcome of the International Conference on Financing for Development;



                                                                                                                             41
HSP/GC/20/9

                      (c)       Economic and Social Council resolutions 2001/22, on the integrated and coordinated
                implementation of and follow-up to major United Nations conferences and summits: coordinated
                implementation of the Habitat Agenda; and 2003/62, on the coordinated implementation of the Habitat
                Agenda.

       2.       Objective
                88.     The overall objective of the subprogramme is to monitor and assess progress towards the attainment
                of the Habitat Agenda goals and the targets of the Millennium Declaration and Johannesburg Plan of
                Implementation on slums, safe drinking water and sanitation.

       3.       Implementation responsibility
                89.      Responsibility for implementing this subprogramme rests with the Monitoring and Research
                Division. To ensure that the expected accomplishments are achieved, the Division will collect, analyse,
                document, generate and collate knowledge on the functioning of urban economies and disseminate global data
                on human settlements conditions and trends including best practices as well as mainstreaming new innovative
                policies, strategies, gender and youth partnerships.

                Table 17.     Expected accomplishments and indicators of achievement for the biennium

      Expected accomplishments                                             Indicators of achievement

      (a)     Expanded global systems for       (a)    (i)     Increased number of national observatories producing improved
              the collection, analysis,                        data on human settlements
              documentation and
              dissemination of data and                        Number of national observatories in Dec. 2003: 5
              information on human                             Number of national observatories in Dec.2005: 15
              settlement conditions, trends,                   Number of national observatories in Dec. 2007: 25
              policies and practices

                                                       (ii)    Increased number of local urban observatories producing
                                                               improved data on human settlement

                                                               Number of local urban observatories in Dec. 2003: 15
                                                               Number of local urban observatories in Dec. 2005: 35
                                                               Number of local urban observatories in Dec. 2007: 80

                                                       (iii)   More members of the Habitat Agenda Global Research Network
                                                               contributing to UN-Habitat flagship reports

                                                               Number of members in Dec. 2003: 6
                                                               Number of members in Dec. 2005: 10
                                                               Number of members in Dec. 2007: 15



                                                       (iv)    Higher number of active partners of the Best practices and Local
                                                               leadership programme

                                                               Number of active partners in Dec. 2003: 21
                                                               Number of active partners in Dec. 2005: 24
                                                               Number of active partners in Dec. 2007: 30

      (b)     Enhanced capacity for             (b)    (i)     Increased number of human settlements programmes that
              mainstreaming gender,                            mainstream gender
              partnerships and youth concerns
              in human settlements activities                  Percentage of human settlements programmes mainstreaming
                                                               gender in Dec. 2003: 45%
                                                               Percentage of human settlements programmes mainstreaming
                                                               gender in Dec. 2005: 50%

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                                                                                                            HSP/GC/20/9

                                                          Percentage of human settlements programmes mainstreaming
                                                          gender in Dec. 2007: 75%

                                                  (ii)    Increased number of human settlements programmes that
                                                          mainstream partnerships

                                                          Number of human settlements programmes in Dec.2003: 25
                                                          networks and 5 regional coalitions
                                                          Number of human settlements programmes in Dec. 2005: 34
                                                          networks and 14 regional coalitions
                                                          Number of human settlements programmes in Dec. 2007: 38
                                                          networks and 14 regional coalitions

                                                  (iii)   Increased number of human settlements programmes that
                                                          mainstream youth concerns

                                                          Percentage of human settlements programmes in Dec. 2003: 50%
                                                          Percentage of human settlements programmes in Dec. 2005: 70%
                                                          Percentage of human settlements programmes in Dec. 2007: 85%

(c)   Better global awareness of            (c)   (i)     Increased number of scientific and media reviews of UN-Habitat
      sustainable human settlements                       flagship reports and other publications
      issues
                                                          Number of scientific and media reviews in Dec. 2003: 64
                                                          Number of scientific and media reviews in Dec. 2005: 70
                                                          Number of scientific and media reviews in Dec. 2007: 80

                                                  (ii)    Increased visits to UN-Habitat electronic data on human
                                                          settlements

                                                          Number of visits in Dec. 2003: 1.7 million hits
                                                          Number of visits in Dec. 2005: 2.5 million hits
                                                          Number of visits in Dec. 2007: 3.5 million hits

                                                  (iii)   Higher numbers of hard copy orders of UN-Habitat flagship
                                                          reports

                                                          Number of hard copy orders in Dec. 2003: 5, 000
                                                          Number of hard copy orders in Dec. 2005: 5,500
                                                          Number of hard copy orders in Dec. 2007: 7,500




 4.    Strategy
       90.     The strategy consists of :
               (a)       Collecting, analysing, documenting and disseminating global data and information on
       human settlements conditions and trends, including indicators, best practices and policies, for assessing
       progress towards the attainment of the goals of the Habitat Agenda, as well as the goals of the United Nations
       Millennium Declaration as set forth in General Assembly resolution 55/2, especially on slums, safe drinking
       water and sanitation;
                (b)      Identifying, developing, testing, disseminating and mainstreaming new and innovative
       policies and strategies on urban planning, urban economic development, urban-rural development linkages,
       municipal and housing finance, urban poverty eradication and employment generation, gender and women’s
       empowerment, partnerships and youth; and
               (c)      Following an increasing recognition of the role of youth as an important partner in human
       settlements development, UN-Habitat will mainstream youth in its normative and operational activities.




                                                                                                                    43
HSP/GC/20/9

      5.      External factors
              91.    The subprogramme is expected to achieve its objectives and expected accomplishments on the
              assumption that:
                    (a)       Adequate resources will be available to carry out country level assessments of the
              implementation of the Habitat Agenda;
                    (b)       Member States will be willing to support the creation of Habitat Agenda monitoring
              mechanisms at the national and local levels; and
                      (c)      Member States will request technical advisory services, respond positively to the technical
              advice rendered and sustain the Habitat Agenda monitoring policies and strategies initiated through
              programmes and projects of UN-Habitat.

      6.      Outputs3
              92.       During the biennium, the subprogramme will deliver the following outputs:

                        1.       Servicing of inter-governmental and expert bodies
                                 The following services will be provided:

                        I.       Substantive servicing of meetings:
                                  (a)   Twenty-first session of the Governing Council (2007)
                                  (b)   Third session of the World Urban Forum (2006)
                                  (c)   Thirty-seventh session of the United Nations Statistical Commission (2007)

                        II.      Parliamentary documentation
                                  (a)   Documentation for the twenty-first session of the Governing Council (2007)
                                  (b)   Documentation for the third session of the World Urban Forum (2006)
                                  (c)   Documentation for the Commission on Sustainable Development (2006, 2007)

                        III.     Other services provided
                                 The following services will be provided:
                                 Expert group meetings
                                  (a)   Expert group meeting on gender mainstreaming in municipal development (1) [2]
                                  (b) Expert group meeting on monitoring the slum target of the Millennium Declaration (1)
                                        [1]
                                  (c)   Expert group meetings on best practices (Technical Advisory Committee and Jury) (2)
                                        [2]
                                  (d) Annual Best Practices and Local Leadership Programme Steering Committee
                                        Meetings (2) [2]

                        2.       Other substantive activities
                                 The following activities will be undertaken:

                        I.       Recurrent publications
                                  (a)   The State of the World’s Cities, 2006 (1) [1]


      3
              The figures in round brackets ( ) denote number of outputs.
              The figures in bold and square brackets [ ] denote the level of prioritization, priority [1] being the highest.

                    [1] = Priority 1
                    [2] = Priority 2
                    [3] = Priority 3

44
                                                                                      HSP/GC/20/9


      (b) Global Report on Human Settlements, 2007 (1) [1]
      (c)   Casebook on Lessons Learnt from Best Practices, Good Urban Policies and Enabling
            Legislation (1) [1]

II.   Non-recurrent publications
      (a)   New and innovative strategies for financing housing improvement in urban low-
            income areas (1) [2]
      (b) Rural-urban development linkage approach: The experiences and potentials (1) [2]
      (c)   Global dialogue on human settlements research papers (10) [2]
      (d) Slums of the World: trends review and update (1) [1]
      (e)   UN-Habitat lecture series (2) [2]
      (f)   Reference manual on gender mainstreaming in municipal development (1) [1]
      (g) Training manual on setting up a youth information and resource centre (1) [2]
      (h) Publication on learning from best practices in youth employment and livelihoods (1)
            [2]
      (i)   Guide on low-cost housing for women (1) [2]
      (j)   Geographical information systems training manuals (1) [2]
      (k) Urban inequities survey training manual (1) [1]
      (l)   Urban indicators programme training manual (2006) (1) [1]
      (m) Publication on learning from best practices in water and sanitation (1) [2]
      (n) Publication on urban policies and legislation that support the relevant targets of the
            Millennium Declaration (1) [2]
      (o) Road map on youth empowerment (1) [2]
      (p) Updating of the best practices database [2]
      (q) UN-Habitat “Historyline” on the slum target of the Millennium Declaration for the
            United Nations Development Group (1) [1]
      (r)   Trend analysis on the slum target of the Millennium Declaration (2) [1]
3.    Technical cooperation
      The following activities will be undertaken:

I.    Advisory services
      (a)   Support to selected countries in review of housing finance systems and institutions [2]
      (b) Assistance to selected countries in setting up micro-finance schemes [2]
      (c)   Support to countries implementing women’s empowerment, gender, HIV/AIDS and
            shelter projects [2]
      (d) Support to the establishment of a network of women mayors and councillors in Africa
            [2]
      (e)   Support to countries and cities as part of the Global Sample of Cities (Urban
            Indicators Programme) on city-data collection and analysis [1]
      (f)   Support for youth empowerment in human settlements [2].

II.   Group training

      (a)   Workshop for informal economy operators on city by-laws and regulations (1) [2]
      (b) Regional workshops for statisticians of the national statistic offices on city collection
            and analysis [2].

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HSP/GC/20/9

          7.      Resource requirements
                  93.       The estimated resource requirements by source of funding and corresponding proposed staffing table
                  for this section are provided below. The non-staff costs required to support the activities under this section are
                  comprised of costs associated with consultants, travel, contractual services, general operating expenses,
                  supplies and materials, furniture and equipment and support to the United Nations Office at Nairobi.

                  Table 18. Summary budget estimates by expenditure category and source of funds, budget
                  for the biennium 2006–2007 (in thousands of US dollars): Subprogramme 2: Monitoring the
                  Habitat Agenda

               Source of funds                               2004–2005                    Change                  2006–2007

            Expenditure category                          Approved             Amount               %             Estimates
                                                        appropriations

     United Nations regular budget
      Staff costs                                                    4,601.8          -             -                     4,601.8
      Non-staff costs                                                  438.3          -             -                       438.3
                                                                     5,040.1          -             -                     5,040.1
     Foundation general purpose
      Staff costs                                                    4,134.6        1,392.6         33.7                  5,527.2
      Non-staff costs                                                2,207.2          897.6         40.7                  3,104.8
                                                                     6,341.8        2,290.2         36.1                  8,632.0
     Foundation special purpose
      Staff costs
      Non-staff costs                                                7,791.1        6,440.4         82.7                 14,231.5
                                                                     7,791.1        6,440.4         82.7                 14,231.5
     Total for subprogramme
      Staff costs                                                  8,736.4       1,392.6            15.9                 10,129.0
      Non-staff costs                                             10,436.6       7,338.0            70.3                 17,774.6
                                        Total                     19,173.0       8,730.6            45.5                 27,903.6

                   Post distribution for the biennium 2006–2007 for subprogramme 2: Monitoring the
                   Habitat Agenda, by funding and level

                                                        Professional category and above                                    Grand
                                                      D–2 D-1       P-5    P-4    P-3 P–2/1 Total L-L Other                Total

 2004–2005
 United Nations regular budget                                   1       3      5          6   2    17       9                26
 Foundation general purpose                                              4      3          6   2    15      12                27
 Foundation special purpose                              1                      1          1        3        1                 4
 Technical cooperation                                                                         2    2                          2
                      2004–2005 subtotal                 1       1       7      9         13   6    37      22     -          59

 Changes (decrease)/increase
 United Nations regular budget                           -       -       -      1          -   -        1    -     -          1
 Foundation general purpose                              1       1       -      -          -   -        2    1     -          3
 Foundation special purpose                            (1)       1       -      -          -   -        -    -     -          -
 Technical cooperation                                   -       -       -      -          -   -        -    -     -          -
                            Net changes                  -       2       -      1          -   -        3    1     -          4

 2006–2007
 United Nations regular budget                                   1       3      6          6   2    18       9                27
 Foundation general purpose                              1       1       4      3          6   2    17      13                30
 Foundation special purpose                                      1              1          1        3        1                 4
 Technical cooperation                                                                         2    2                          2
                     2006–2007 subtotal                  1       3       7     10         13   6    40      23     -          63

46
                                                                                                            HSP/GC/20/9


 C.     Subprogramme 3: Regional and technical cooperation
 1.     Legislative mandate

        94.    The legislative mandate for subprogramme 3 is provided by the following Governing Council and
        General Assembly resolutions:
                 (a)       Governing Council resolutions 19/7, on regional and technical cooperation; 19/15, on
        countries with economies in transition; and 19/18 , on human settlements development in the occupied
        Palestinian territories;
                 (b)      General Assembly resolutions 54/232, on implementation of the first United Nations Decade
        for the Eradication of Poverty; 55/2, on the United Nations Millennium Declaration; 57/144, on follow-up to
        the outcome of the Millennium Summit; S–25/2, on the Declaration on Cities and Other Human Settlements
        in the New Millennium; and 58/222, on implementation of the first United Nations Decade for the Eradication
        of Poverty (1997–2006).

 2.     Objective
        95.      The overall objective of the subprogramme is to strengthen the formulation and implementation of
        policies, strategies and programmes and to develop capacities primarily at the national and local levels, within
        the UN-Habitat mandate.

 3.     Implementation responsibility
        96.      The Regional and Technical Cooperation Division will implement this programme. To realize the
        expected accomplishments, the division will focus its efforts on the normative functions that include setting
        standards, proposing norms and principles as well as operational activities comprising policy formulation,
        capacity-building and demonstration projects. Habitat Programme Managers posted in 45 countries will
        promote the mainstreaming of urban issues in United Nations development assistance frameworks and
        poverty reduction strategy programmes. The Habitat Programme Managers will serve as in-country liaison
        officers for UN-Habitat, with special responsibility for the implementation of the slum target of the
        Millennium Declaration, the Habitat Agenda, the global campaigns and global programmes. They will work
        with all UN-Habitat staff on mission in their countries, assist with project and programme identification,
        monitor implementation of existing projects and contribute towards knowledge management and information
        dissemination.

        Table 19.     Expected accomplishments and indicators of achievement for the biennium

Expected accomplishments                                             Indicators of achievement

(a)   Enhanced capacity to implement       (a)    (i)    Increased number of countries working with UN-Habitat to
      human settlements policies,                        strengthen their institutions’ ability to develop strategies to
      strategies and programmes with
                                                         reduce urban poverty
      special focus on reduction of
      urban poverty and response to
                                                         Number of countries in Dec. 2003: 39
      disasters
                                                         Number of countries in Dec. 2005: 40
                                                         Number of countries in Dec. 2007: 49

                                                         Increased number of countries working with UN-Habitat to
                                                         strengthen their institutions’ competence to respond to disasters

                                                         Number of countries in Dec. 2003: 9
                                                         Number of countries in Dec. 2005: 20
                                                         Number of countries in Dec. 2007: 20

(b)   Increased awareness of the global    (b)    (i)    Increased number of regional partners promoting the global
      campaigns on secure tenure and                     campaigns on secure tenure and urban governance
      urban governance, expanded

                                                                                                                       47
HSP/GC/20/9

              knowledge of regional urban                       Number of regional partners in Dec. 2003:19
              settlements management trends                     Number of regional partners in Dec. 2005: 32
              and development of policies to                    Number of regional partners in Dec. 2007: 37
              address these trends
                                                        (ii)    Increased number of regional partners participating in the
                                                                analysis of best practices in settlements management

                                                                Number of regional partners in Dec. 2003:11
                                                                Number of regional partners in Dec. 2005: 14
                                                                Number of regional partners in Dec. 2007: 17

                                                        (iii)   Increased number of regional partners contributing towards the
                                                                preparation of flagship reports

                                                                Number of regional partners in Dec. 2003: 20
                                                                Number of regional partners in Dec. 2005: 36
                                                                Number of regional partners in Dec. 2007: 40

      (c)     Improved ability of                (c)            Increased number of countries benefiting from UN-Habitat
                                                                technical cooperation activities
              UN-Habitat to respond to
              requests for technical                            Number of countries in Dec. 2003: 45
              assistance and policy advice                      Number of countries in Dec. 2005: 50
              at national and local levels                      Number of countries in Dec. 2007: 61




       4.      Strategy
               97.     To achieve the objective, UN-Habitat combines normative and operational functions at regional,
               national and local levels, as follows:
                        (a)     The normative functions include setting standards, proposing norms and principles and
               examples of best practices and good policies built on experience gained through the two global campaigns on
               secure tenure and on urban governance;
                       (b)     The operational activities consist of policy formulation, capacity-building programmes and
               demonstration projects that support the normative work of UN-Habitat in developing countries and countries
               with economies in transition, at the request of Governments.
                        (c)    Women are expected to be active participants and beneficiaries of the programmes and
               projects implemented under this subprogramme, including those aimed at mainstreaming gender issues and
               policies; and
                       (d)      The subprogramme will link regional partners, governments and local authorities, with a
               view to ensuring adequate synergies between normative and operational activities.
       5.      External factors
               98.     The subprogramme is expected to achieve its objectives on the assumption that:
                        (a)      There is the political will and capacity to embark upon policy reform and large-scale
               programme development and execution in support of the urban poor, to improve the housing and tenurial
               rights of the population and to adopt improved tools for urban governance and management; and
                       (b)      Extrabudgetary resources are available, particularly to finance country projects.




48
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6.        Outputs4
          99.      During the biennium, the subprogramme will produce the following outputs:

                   1.        Servicing of intergovernmental and expert bodies

                   I.        Substantive servicing of meetings
                             The following meetings will be serviced:
                             (a)     Twenty-first session of the Governing Council (2007)
                             (b)     Third session of the World Urban Forum (2006)

                   II.       Parliamentary documentation
                             (a)     Documentation for the twenty-first session of the Governing Council (2007)
                             (b)     Documentation for the third World Urban Forum (2006)


                   III.      Other services provided

                             Expert group meetings
                             (a)     Annual meetings of Ministers of Housing and Urban Development of the Latin
                                     American and Caribbean Countries (MINURVI) (2) [2]
                             (b) Meetings of the Campaign Regional Action Committee for Latin America and the
                                     Caribbean (2) [2]
                             (c)     Meetings of the African Ministerial Conference on Housing and Urban Development
                                     (AMCHUD) (1) [2]
                             (d) Meetings of the Ibero-American Forum of Best Practices (2) [3]
                             (e)     Expert meetings on security of tenure and urban governance issues: participatory
                                     budgeting; social housing finance, metropolitan, management, local development plans,
                                     urban safety and settlements upgrading (8) [2]
                             (f)     Meetings on housing and urban development in Eastern Europe and countries with
                                     economies in transition (2) [2]
                             (g) Annual meeting of the Asian and Pacific Ministerial Conference on Land, Housing and
                                     Urban Development (2) [2]

                   2.        Other substantive activities
                             The following activities will be undertaken

                   I.        Recurrent publications:
                             (a)     Habitat Debate in Spanish (8) [1]
                             (b) Operational Activities Report (1) [1]

                II.          Non-recurrent publications:
                             (a)     Community-based approach to empowerment (1) [2]
                             (b) Papers for the Campaign Regional Action Committee for Latin American and Caribbean

4
         The figures in round brackets ( ) denote number of outputs
The figures in bold and square brackets [ ] denote the level of prioritization, priority [1] being the highest.

          [1]         = Priority 1
          [2]         = Priority 2
          [3]         = Priority 3

                                                                                                                          49
HSP/GC/20/9

                           and the Ibero-American Forum of Best Practices (4) [3]
                     (c)   Housing finance for Eastern European and countries with economies in transition (1) [3]
                     (d) Housing policy on Iraq (1) [3]
                     (e)   Urban profiles of 10 African countries (11 reports) [3]


              3.      Technical cooperation
                     The following services will be provided

              I.     Advisory services

                     (a)   Mainstreaming of urban issues in United Nations development assistance frameworks
                           and poverty reduction strategy papers and promotion of UN-Habitat global programmes
                           by national Habitat Programme Managers posted in 45 countries [1]
                     (b) Advisory services provided to Latin American countries on urban governance, local
                           environmental planning, urban safety, sectoral indicators, settlements upgrading and
                           local economic development (8) [1]
                     (c)   Advisory services to Eastern Europe and countries with economies in transition on
                           housing policy, housing finance, urban governance, land management tools in urban
                           governance; water and sanitation (15) [1]
                     (d) Advisory services to Asian and Pacific countries including China on land tenure, urban
                           environment and solid waste management (10) [1]
                     (e)   Programme formulation and backstopping in areas of post-conflict and post-disaster
                           management and reconstruction in African countries (20)[1]
                     (f)   Advisory services to African countries on housing and slum upgrading, water and
                           sanitation, land and shelter issues, environmental planning, and safer cities (32) [1]


              II.    Group training

                     (a)   Community participation, disaster management and secure tenure in African countries
                           (3) [3]
                     (b) Settlements upgrading (Afghanistan, Bangladesh, Cambodia, Mexico); urban
                           information systems (Panama); micro credit (Colombia); urban management (Colombia,
                           Sri Lanka); vulnerability reduction and urban plans (Bolivia, South Pacific) (10); Group
                           training to African countries on safer cities, poverty reduction, urban governance,
                           environmental planning, water and sanitation (16) [2]


              III.   Field projects

                     (a)   Projects in African countries on urban poverty alleviation, slum upgrading and urban
                           development (15) [1]
                     (b) Projects on reconstruction, municipal management and urban environment and human
                           security in Asian countries (10) [1]
                     (c)   Water and sanitation projects in Asian countries (Afghanistan, Bangladesh, Lao
                           Peoples’ Democratic Republic, Myanmar and Timor Leste) (5) [1]
                     (d) Slum upgrading and urban development projects in six countries and vulnerability
                           reduction projects in four countries in Latin America (10) [1]
                     (e)   Reconstruction projects in Afghanistan, Iraq, Serbia and Montenegro, Sierra Leone and
                           Somalia [1]
                     (f)   Urban poverty alleviation, slum upgrading, housing finance and secure tenure in Asian
                           and Pacific countries (10) [2]


50
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                                (g) Cities Without Slums projects in Africa, in cooperation with Cities Alliance [1]
                                (h) Monitoring progress and impact assessment in city development strategies in Egypt and
                                      Mozambique in cooperation with Cities Alliance [2]
      8.        Resource requirements
                100. The estimated resource requirements by source of funding and corresponding proposed staffing table
                for this section are provided below. The non-staff costs required to support the activities under this section are
                comprised of costs associated with consultants, travel, contractual services, general operating expenses,
                supplies and materials, furniture and equipment and support to the United Nations Office at Nairobi.
                Table 20. Summary budget estimates by expenditure category and source of funds,
                budget for the biennium 2004–2005 (in thousands of US dollars): Subprogramme 3:
                Regional and technical cooperation

             Source of funds                          2004–2005                     Change                     2006–2007

           Expenditure category                      Approved                Amount              %             Estimates
                                                   appropriations

United Nations regular budget
 Staff costs                                                       2,081.4            -              -                 2,081.4
 Non-staff costs                                                     194.9            -              -                   194.9
                                                                   2,276.3            -              -                 2,276.3
Foundation general purpose
 Staff costs                                                       1,045.2         361.9           34.6                1,407.1
 Non-staff costs                                                     147.5          53.9           36.5                  201.4
                                                                   1,192.7         415.8           34.9                1,608.5
Foundation special purpose
 Staff costs
 Non-staff costs                                                   3,702.5        2,511.0          67.8                6,213.5
                                                                   3,702.5        2,511.0          67.8                6,213.5
Technical cooperation
 Staff costs                                                    6,018.5         (2,356.1)         (39.1)              3,662.4
 Non-staff costs                                              151,252.3        (90,285.0)         (59.7)             60,967.3
                                                              157,270.8        (92,641.1)         (58.9)             64,629.7
Total for subprogramme
 Staff costs                                                    9,145.1        (1,994.2)          (21.8)              7,150.9
 Non-staff costs                                              155,297.2       (87,720.1)          (56.5)             67,577.1
                                       Total                  164,442.3       (89,714.3)          (54.6)             74,728.0


                Post distribution for the biennium 2006–2007 for subprogramme 3: Regional and
                technical cooperation by funding and level

                                                           Professional category and above                                    Grand
                                                    D-2     D-1    P-5    P-4    P-3    P-2/1 Total L-L             Other     Total

2004–2005
United Nations regular budget                          1                      3                      4        1                   5
Foundation general purpose                                                            1              1        1                   2
Technical cooperation                                         3       12      2       1     5        23       8        1         32
                     2004–2005 subtotal                1      3       12      5       2     5        28      10        1         39

Changes (decrease)/increase
                          Net changes                  -       -        -     -       -      -           -     -       -             -

2006–2007
United Nations regular budget                          1                      3                      4        1                   5
Foundation general purpose                                                            1              1        1                   2
Technical cooperation                                         3       12      2       1     5        23       8        1         32
                     2006–2007 subtotal                1      3       12      5       2     5        28      10        1         39
                                                                                                                                 51
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       D.       Subprogramme 4. Human settlements financing

       1.       Legislative mandate

                101. The legislative mandate for subprogramme 4 is provided by the following Governing Council
                resolutions and General Assembly resolutions:
                      (a)     Governing Council resolution 19/11, on strengthening the United Nations Habitat and
                Human Settlements Foundation;
                         (b)      General Assembly resolutions 3327 (XXIX), on the establishment of the United Nations
                Habitat and Human Settlements Foundation; 58/230, on follow-up to and implementation of the outcome of
                the International Conference on Financing for Development; 54/232, on implementation of the first United
                Nations Decade for the Eradication of Poverty; 55/2, on the United Nations Millennium Declaration; 57/144.
                on follow-up to the outcome of the Millennium Summit; 56/206, on strengthening the mandate and status of
                the Commission on Human Settlements and the status, role, and functions of the United Nations Centre for
                the Human Settlements (Habitat); and S–25/2, on the Declaration on Cities and Other Human Settlements in
                the New Millennium.
       2.       Objective
                102. The overall objective of the subprogramme is to facilitate the mobilization of investments from
                international and domestic sources in support of adequate shelter, related infrastructure development
                programmes and housing finance institutions and mechanisms, particularly in developing countries and in
                countries with economies in transition.
       3.       Implementation responsibility
                103. Responsibility for this subprogramme rests with the United Nations Habitat and Human Settlements
                Foundation, anchored in the Human Settlements Financing Division. To ensure the achievement of the
                expected accomplishments, the main focus will be on strengthening the Foundation, providing support for the
                mobilization of seed finance, working with partners and providing technical assistance. Particular emphasis
                will be placed on mobilizing finance from international sources for leveraging domestic investment for slum
                upgrading and other pro-poor human settlements development through longer-term programmes such as the
                Slum Upgrading Facility.
       Table 21.       Expected accomplishments and indicators of achievement for the biennium

                  Expected accomplishments                                       Indicators of achievement

      (a)     Strengthened United Nations Habitat and         (a)   Increased level of resources mobilized for pro-poor
              Human Settlements Foundation as an                    human settlements development
              effective institution for the mobilization of
              financial resources for pro-poor human                Level of funds raised in Dec. 2003: 54 million
              settlements development, particularly in              Level of funds raised in Dec. 2005: 69 million
              developing countries and countries with               Level of funds raised in Dec. 2007: 83 million
              economies in transition
      (b)     Increased financial resources for human         (b)   Increase in the number of countries working with the
              settlements development leveraged by the              Foundation to strengthen policies and mechanisms for
              Foundation from domestic sources through              financing housing and related infrastructure
              strengthened domestic policies and
              mechanisms for financing housing and                  Number of countries in Dec. 2003: 7
              related infrastructure, particularly in               Number of countries in Dec. 2005: 10
              developing countries and countries with               Number of countries in Dec. 2007: 15
              economies in transition
      (c)     Expanded partnerships and alliances             (c)   Increased number of partnerships and alliances formed and
              between UN-Habitat and international and              developed to increase investment allocations for improving
              regional institutions to increase investments         human settlements
              for improving human settlements for low-
              income people, particularly in developing             Number of partnerships and alliances in Dec. 2003: 4
              countries and countries with economies in             Number of partnerships and alliances in Dec. 2005: 8
              transition                                            Number of partnerships and alliances in Dec. 2007: 12


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4.      Strategy

        104.     The strategy for implementing the subprogramme includes:
                (a)      Strengthening the Foundation for the more effective mobilization of resources, both from the
        public and private sectors, for shelter and related infrastructure in developing countries and in countries with
        economies in transition, with special focus on the needs of slum-dwellers and low-income groups and on the
        implementation of Millennium Declaration target on slum upgrading;
                (b)       At the request of Governments, providing finance for the mobilization of seed capital and
        technical assistance to develop and support mechanisms for mobilizing domestic savings and capital in order
        to improve the availability of affordable housing, adequate shelter and infrastructure in developing countries
        and in countries with economies in transition; and
                 (c)      Working with the World Bank Group, regional development banks, other development
        banks, the private sector, United Nations agencies and other relevant partners to link the normative and
        technical cooperation activities of UN-Habitat with the financing institutions, and to mobilize finance from
        international sources to play a catalytic and preparatory role in leveraging domestic investment for slum
        upgrading and other pro-poor human settlements development.
5.      External factors
        105. The subprogramme is expected to achieve its objectives and expected accomplishments on the
        assumption that:
                 (a)       There is an increase in the level of financial commitment and support received from
        international and regional development banks, bilateral development cooperation agencies, and international
        donor facilities to strengthen the Habitat Foundation;
               (b)       There is support among Member States and domestic financial institutions at country level to
        develop financial mechanisms for mobilizing domestic capital for slum upgrading; and
                  (c)      International financial institutions and UN-Habitat provide the political will to overcome
        institutional barriers and identify modalities for effective partnership.

6.      Outputs5
        106.     During the biennium, the subprogramme will deliver the following outputs:

                  1.       Servicing of intergovernmental and expert bodies

                  I.       Substantive servicing of meetings
                          The following meetings will be serviced:
                          (a)    Twenty-first session of the Governing Council of UN-Habitat (2007)
                          (b) Third session of the World Urban Forum (2006)

                  II.      Parliamentary documentation:
                          (a)    Documentation for the twenty-first session of the Governing Council (2007)
                          (b)    Documentation for the third session of the World Urban Forum (2006)




5
        The figures in round brackets ( ) denote number of outputs
The figures in bold and square brackets [ ] denote the level of prioritization, priority [1] being the highest.

         [1]      = Priority 1
         [2]      = Priority 2
         [3]      = Priority 3

                                                                                                                          53
HSP/GC/20/9

              III.    Other services provided
                     The following services will be provided
                      Expert group meetings:

                     (a)   Expert group meetings on the fund-raising strategy for the Habitat Foundation (1) [1];
                     (b)   Expert group meeting on institutional framework and options for the Habitat Foundation
                           (1) [1];
                     (c)   Regional meetings for participatory development of tool kits and instruments for
                           mobilizing domestic capital for slum upgrading, shelter and related infrastructure (2)
                           [3];
                     (d)   Annual meetings of advisory board of development programmes of the Habitat
                           Foundation (2) [2];
                     (e)   Ad hoc expert groups: meetings on the role of international development banks,
                           financial institutions and donor facilities in using resources to leverage domestic capital
                           for housing and related infrastructure (2) [2];
                     (f)   Joint UN-Habitat and Private Infrastructure Development Group (PIDG) annual meeting
                           on mobilizing domestic capital for basic services and related urban infrastructure (2) [1].

              2.      Other substantive activities

                      The following activities will be undertaken:

              I.      Recurrent publications:
                     (a)   Annual Report on the Habitat Foundation and Its Activities (2) [2].

              II.     Non-recurrent publications:
                     (a)   Compilation of the rules, procedures, constitution and structure of the Habitat
                           Foundation (1) [1];
                     (b)   Report on the survey of Member States and other stakeholders on the efficiency and
                           effectiveness of the Habitat Foundation (1) [1];
                     (c)   Report on efforts by commercial lending institutions to promote affordable housing loan
                           products for selected developing countries (1) [1];
                     (d)   Report on types, constraints and innovative mechanisms of domestic capital for basic
                           services and infrastructure for selected developing countries (1) [1];
                     (e)   Compilation of innovative tools and practices for municipal financing of bulk
                           infrastructure in informal settlements for selected developing countries (1) [1];
                     (f)   Joint UN-Habitat/International Financial Institution publication on the role of
                           international and regional financial institutions and international donor facilities in
                           mobilizing domestic capital for slum upgrading (1) [1];
                     (g)   Joint UN-Habitat/International Financial Institution report on trends in global financial
                           service industry and constraints and opportunities for human settlements financing (1)
                           [2];
                     (h)   Memorandums of understanding and other cooperation frameworks concluded with
                           International Financial Institutions, regional development banks, international donor
                           facilities and other United Nations organizations (4) [2].

              III.    Technical materials:
                     (a)   Web-based dissemination of information on the activities of the Habitat Foundation,
                           including its partners, pilot projects and programmes (1) [2];
                     (b)   Database on financing of housing and related infrastructure for the urban poor to assist
                           in the monitoring of the implementation of the Millennium Development Goals (1) [2].




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             3.       Technical cooperation

                      The following services will be undertaken

             I.       Advisory services

                              Provision of advisory services to interested Member States on packaging slum
                              upgrading projects, facilitating cooperation between domestic lending institutions and
                              development partners, and mobilizing domestic capital for upgrading, shelter and
                              basic services; pilot projects that demonstrate various options, for example, seed grant,
                              loan guarantee funds, equity investments and bridge financing (10) [1];

             II.      Group training

                       (a)    Seminars/workshops on lessons learned, partnerships and best practices in unlocking
                              domestic sources of finance, and utilizing international resources to leverage domestic
                              sources for shelter and human settlements development (2) [1];
                       (b)    Joint UN-Habitat/International Financial Institution workshops designed to facilitate
                              cooperation between domestic lending institutions and development partners in
                              selected developing countries (2) [3].

             IV.             Field projects:

                       (a)    Field testing financial instruments for mobilizing domestic capital for housing and
                              related urban infrastructure (5) [1];
                       (b)    Long term programmes to mobilize resources to increase the supply of affordable
                              credit for slum upgrading and related shelter and infrastructure projects (2-4) [2];
                       (c)    Substantive technical and financial assistance to local and national slum upgrading
                              projects, with emphasis on financial packaging and the development of instruments to
                              scale up and replicate such projects (5) [1];
                       (d)    Joint UN-Habitat/International Financial Institutions pilot projects that draw upon
                              respective expertise to mobilize domestic capital for shelter and basic services in
                              selected developing countries (3) [2];
                       (e)    Joint UN-Habitat/International Financial Institutions partnerships that combine pre-
                              investment software development services with fast-track investment portfolio,
                              respectively, in selected developing countries [2].


7.   Resource requirements
     107. The estimated resource requirements by source of funding and corresponding proposed staffing table
     for this section are provided below. The non-staff costs required to support the activities under this section is
     comprised of costs associated with consultants, travel, contractual services, general operating expenses,
     supplies and materials, furniture and equipment and support to the United Nations Office at Nairobi.




                                                                                                                     55
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                  Table 22. Summary budget estimates by expenditure category and source of funds, budget
                  for the biennium 2006–2007 (in thousands of US dollars): Subprogramme 4: Human
                  settlements financing

                  Source of funds                      2004–2005                   Change                   2006–2007
               Expenditure category                    Approved          Amount                   %         Estimates
                                                     appropriations


     United Nations regular budget
      Staff costs                                               259.3              -                -              259.3
      Non-staff costs                                            16.2              -                -               16.2
                                                                275.5              -                -              275.5
     Foundation general purpose
      Staff costs                                              2,286.4         (51.7)             (2.3)           2,234.7
      Non-staff costs                                          1,067.2        349.0              32.7             1,416.2
                                                               3,353.6        297.3                8.9            3,650.9
     Foundation special purpose
      Staff costs
      Non-staff costs                                          3,274.1       6,046.9            184.7             9,321.0
                                                               3,274.1       6,046.9            184.7             9,321.0
     Total for subprogramme
      Staff costs                                              2,545.7         (51.7)             (2.0)          2,494.0
      Non-staff costs                                          4,357.5       6,395.9            146.8           10,753.4
                                          Total                6,903.2       6,344.2             91.9           13,247.4



                  Post distribution for the biennium 2006–2007 for subprogramme 4: Financing human
                  settlements, by funding and level

                                                     Professional category and above                                   Grand
                                           ASG     D-2 D-1 P-5 P-4 P-3 P-2/1 Total L-L                    Other        Total



2004–2005
United Nations regular budget                                            1                  1                               1
Foundation general purpose                    1     1      1      1      1    2             7       6                       13
                     2004–2005 subtotal       1     1      1      1      2    2         -   8       6       -               14

Changes (decrease)/increase
Foundation general purpose                         (1)     -      -      -     -        - (1)      (1)      -               (2)
Foundation special purpose                           1     -      -      -     -        - 1         -       -                1
                           Net changes         -     -     -      -      -     -        - -        (1)      -               (1)

2006–2007
United Nations regular budget                                            1                  1                               1
Foundation general purpose                    1            1      1      1    2             6       5                       11
Foundation special purpose                          1                                       1                               1
                    2006–2007 subtotal        1     1      1      1      2    2         -   8       5       -               13


          E.      Programme support
          1.      Objective
                  108. The overall objective is to provide support to the implementation of the human settlements
                  programme through programme planning, financial and administrative management and human resources
                  planning. Responsibility for this programme rests with the Programme Support Division.
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 2.      Implementation responsibility
         109. The Programme Support Division will support implementation of the four sub programmes by
         providing a number of services that include: programme planning and coordination; budgeting, financial and
         administrative management; human resource planning; ensuring proper servicing of funding partners; and
         compliance with agreements; ensuring implementation of recommendations by the Board of Auditors and the
         United Nations Office for Internal Oversight Services. These services are provided by the Programme Support
         Division, administrative project staff in the regional offices and in coordination and with the assistance of the
         Division of Administrative Services of the United Nations Office at Nairobi.

          Table 23.    Expected accomplishments and indicators of achievement


       Expected accomplishments                                        Indicators of achievement
(a)   Efficient preparation and              (a)   (i)    Approval of the strategic framework by the Committee of
      coordination of the Strategic                       Permanent Representatives, Committee on Programme and
      Framework (2008–2009) and                           Coordination and the General Assembly
      proposed programme budget
      (2008–2009) reflecting the                          Dec. 2003: Not applicable.
      recommendations of the governing                    Dec. 2005: Document by the governing bodies.
      bodies and prepared in accordance                   Dec. 2007: Document by the governing bodies
      with the Programme Planning and
      Budget Division instructions

                                             (a)   (ii)   Approval of the proposed programme budget by the Governing
                                                          Council and the General Assembly

                                                          Dec. 2003: Work programme and budget documents approved
                                                          by the Governing Council and General Assembly.
                                                          Dec. 2005: Integrated document by the governing bodies
                                                          Dec. 2007: Integrated document by the governing bodies.

(b)   Effective budgetary control and        (b)          Level of expenditure within approved budget allotments
      monitoring of expenditure
                                                          Dec. 2003: 95% of allotments
                                                          Dec. 2005: 98% of allotments
                                                          Dec. 2007:98% of allotments

(c)   Improved quality and                   (c)   (i)    Delivery of services in accordance with performance indicators
      cost-effectiveness of the                           specified in the service level agreement
      administrative services provided by
      the United Nations Office at                        Dec. 2003: 70% within agreed service level agreement
      Nairobi to UN-Habitat                               Dec. 2005: 80% within agreed service level agreement.
                                                          Dec. 2007: 85% within agreed service level agreement.

(d)   More efficient planning and                         Maintenance of vacancy rate at an acceptable level
      utilization of human resources
                                                          Dec. 2003: 5% of vacancies
                                                          Dec. 2005: 4% of vacancies
                                                          Dec. 2007: 3% of vacancies

(e)   Improved flow of management                         Production of on-line management reports
      information within the
      organization                                        Dec. 2003: 8 hard copy reports produced and distributed
                                                          Dec. 2005: On-line computerized grant database
                                                          Dec. 2007: On-line management reports




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        3.       Outputs

                 110.    During the biennium, the Programme Support Division will deliver the following outputs:

                         1.       Servicing of intergovernmental and expert bodies

                         I.       Human resources management
                                   (a)   Human resources status reports to the Committee of Permanent Representatives (4)
                                         [1];
                                   (b) Human resource status reports to UNHQ (24) [2].

                         II.      Programme planning, budget and accounts
                                   (a)   The strategic framework 2008–2009 (1) [1];
                                   (b)   The proposed programme budget (2008–2009) (1) [1];
                                   (c)   Quarterly financial reports for the Committee of Permanent Representatives (8) [1];
                                   (d)   Quarterly reports of the Programme Review Committee (8) [2];
                                   (e)   Updated service level agreement with UNON (1) [2];
                                   (f)   Quarterly management information reports (8) [2];
                                   (g)   Support to OIOS and external audit services and implementation of recommendations
                                         [1].


        4.       Resource requirements
                 111. The estimated resource requirements by source of funding and corresponding proposed staffing table
                 for this section are provided below. The non-staff costs required to support the activities under this section is
                 comprised of costs associated with consultants, travel, contractual services, general operating expenses,
                 supplies and materials, furniture and equipment and support to the United Nations Office at Nairobi.

                 Table 24. Summary budget estimates by expenditure category and source of funds,
                 budget for the biennium 2006–2007 (in thousands of US dollars): Programme
                 Support Division

              Source of funds                         2004–2005                     Change                   2006–2007
         Expenditure category                           Approved             Amount               %          Estimates
                                                      appropriations

 Foundation general purpose
  Staff costs                                                     1,205.7       196.5           16.3                  1,402.2
  Non-staff costs                                                   134.7       223.3          165.8                    358.0
                                                                  1,340.4       419.8           31.3                  1,760.2
 Foundation special purpose
  Staff costs                                                     1,804.8     1,614.7           89.5                  3,419.5
  Non-staff costs                                                   189.1       574.9          304.0                    764.0
                                                                  1,993.9     2,189.6          109.8                  4,183.5
 Technical cooperation
  Staff costs                                                     1,806.7      (200.8)         (11.1)                 1,605.9
  Non-staff costs                                                   367.0       (30.7)          (8.4)                   336.3
                                                                  2,173.7      (231.5)         (10.7)                 1,942.2
 Total programme support
  Staff costs                                                     4,817.2     1,610.4           33.4                  6,427.6
  Non-staff costs                                                   690.8       767.5          111.1                  1,458.3
                                         Total                    5,508.0     2,377.9           43.2                  7,885.9


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               Post distribution for the biennium 2006–2007 for programme support by funding and level

                                                 Professional category and above                     Grand
                                           D-1    P-5    P-4 P-3 P-2/1        Total L-L     Other      total


2004–2005
United Nations regular budget                                                  -                        -
Foundation general purpose                   1     1      1      1             4        3              7
Foundation special purpose                                1      2     2       5       16              21
Technical cooperation                                     3      1     3       7        7              14
                      2004–2005 subtotal     1     1      5      4     5      16       26    -         42

Changes (decrease)/increase
                           Net changes       -      -      -     -     -      -    -         -          -

2006–2007
United Nations regular budget                                                  -                        -
Foundation general purpose                   1     1      1      1             4        3              7
Foundation special purpose                                1      2     2       5       16              21
Technical cooperation                                     3      1     3       7        7              14
                    2006–2007 subtotal       1     1      5      4     5      16       26    -         42




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      Annex I
      Legislative mandate
      Programme 12 of the strategic framework: Human settlements

      A.      General Assembly resolutions

              3327 (XXIX)    Establishment of the United Nations Habitat and Human Settlements Foundation
              54/232         Implementation of the first United Nations Decade for the Eradication of Poverty

              55/2           United Nations Millennium Declaration

              57/144         Follow-up to the outcome of the Millennium Summit

              56/206         Strengthening the mandate and status of the Commission on Human Settlements
                             and the status, role, and functions of the United Nations Centre for the Human
                             Settlements (Habitat)

              S–25/2         Declaration on Cities and Other Human Settlements in the New Millennium

              57/270 B       Integrated and coordinated implementation of and follow-up to the outcomes of
                             the major United Nations Conferences and summits in the economic and social
                             fields

              57/275         Special session of the General Assembly for an overall review and appraisal of
                             the implementation of the outcome of the United Nations Conference on
                             Human Settlements (Habitat II) and the strengthening of the United Nations
                             Human Settlements Programme (UN-Habitat)

              58/217         International Decade for Action, “Water for Life”, 2005–2015

              58/218         Implementation of Agenda 21, the Programme for the Further Implementation
                             of Agenda 21 and the outcomes of the World Summit on Sustainable
                             Development

              58/222         Implementation of the first United Nations Decade for the
                             Eradication of Poverty (1997–2006)

              58/226         Implementation of the outcome of the United Nations Conference on Human
                             Settlements (Habitat II) and the strengthening of the United Nations Human
                             Settlements Programme (UN-Habitat)

              58/230         Follow-up to and implementation of the outcome of the International
                             Conference on Financing for Development (subprogrammes 2 and 4)
              58/269         Strengthening of the United Nations: an agenda for further change

      B.      Economic and Social Council resolutions, decisions and agreed conclusions
              2002/1         Themes for the high-level and coordination segments of the substantive
                             session of 2002 of the Economic and Social Council (theme of the
                             coordination segment: Strengthening further the Economic and Social Council,
                             building on it recent achievements, to help it fulfil the role ascribed to it in the
                             charter of the United Nations as contained in the United Nations Millennium
                             Declaration)


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     2003/6        The role of the United Nations Economic and Social Council in the integrated
                   and coordinated implementation of and follow-up to the outcomes of the major
                   United Nations conferences and summits

     2003/62       Coordinated implementation of the Habitat Agenda

C.   Governing Council resolutions
     18/4          Implementation of General Assembly resolution 53/242 and cooperation
                   between the United Nations Centre for Human Settlements (Habitat) and the
                   United Nations Environment Programme (subprogrammes 1 to 3)
     19/2          Work programme and budget of the United Nations Human Settlements
                   Programme for the biennium 2004–2005
     19/5          Implementing and monitoring the goal of the United Nations Millennium
                   Declaration on improving the lives of slum dwellers

     19/6          Water and sanitation in cities
     19/16         Women’s role and rights in human settlements development and slum upgrading




                                                                                               61
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          Annex II

                Organizational structure and post distribution for the biennium 2006–2007

                                                                 EXECUTIVE DIRECTOR
                                                                      RB: 1 USG



                                                             Deputy Executive Director
                                                                    FND: [1 ASG]a




                                                           Office of the Executive Director                 Programme support
                    New York/Geneva
                      liaison offices                              RB              FND                        FND       TC
                                                                  1 D-1            1 P-5                      1 D-1    3 P-4
                      RB       FND                                1 P-5            2 P-4                      1 P-5    1 P-3
                     1 D-1     1 P-5                              1 P-3            1 P-3                      2 P-4    3 P-2
                     1 P-4     1 P-3                                                                          3 P-3
                                                                                                              2 P-2




            Shelter & Sustainable            Monitoring the Habitat                Regional & Technical        Financing Human
             Human Settlements                      Agenda                             Cooperation                Settlements
                Development
                                               RB        FND        TC              RB     FND       TC        RB        FND
             RB        FND       TC          1 D-1       1 D-2     2 P-2           1 D-2   1 P-3   3 D-1      1 P-4     1 ASGa
            1 D-1      1 D-2    4 P-2         3 P-5      2 D-1                     3 P-4           12 P-5                1 D-2
            4 P-5      2 D-1                  6 P-4      4 P-5                                      2 P-4                1 D-1
            6 P-4      3 P-5                  6 P-3      4 P-4                                      1 P-3                1 P-5
            5 P-3      4 P-4                  2 P-2      6 P-3                                      5 P-2                1 P-4
            3 P-2      6 P-3                             2 P-2                                                           2 P-3
                       2 P-2




                                                      Total number of posts                   =    144
                                                      Regular budget (RB)                     =    48
                                                      Foundation (FND)                        =    60
                                                      Technical cooperation (TC)              =    36




      a
       ASG is Deputy Executive Director and manager of the
      Foundation

      Note: Excludes five (5) new posts and one (1) upgrade being
            requested under the Regular Budget




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Annex III

Terminology

    Allotment

    A financial authorization issued by or on behalf of the executive head of the organization to an official or a
    unit to incur obligations for specific purposes and within specified limits during a definite period.

    Appropriation

    Amount approved by the relevant authority for specified purposes for a financial period, against which
    obligations may be incurred for those purposes up to the approved amounts.

    Cost increase or decrease

    Any increase or decrease in the cost of a resource input in a budget period compared with that in a previous
    budget period, arising from changes in costs, prices or exchange rates.

    Expected accomplishment

    A desired outcome involving benefits to end-users, expressed as a quantitative or qualitative standard, value
    or rate. Accomplishments are the direct consequence of the generation of outputs and lead to the fulfilment
    of a certain objective.

    Financial reserve

    A reserve, established at a level determined by the Governing Council of UN-Habitat, to ensure the
    financial liquidity and integrity of the United Nations Habitat and Human Settlements Foundation to
    compensate for uneven cash flows and to meet such other similar requirements as may be decided upon
    from time to time by the Governing Council.

    United Nations Habitat and Human Settlements Foundation general purpose resources

    Resources of the Foundation that are commingled and untied. These include voluntary contributions
    pledged or paid by Governments or intergovernmental organizations, donations from non-governmental
    sources and related interest earnings and miscellaneous income.

    United Nations Habitat and Human Settlements Foundation special purpose resources

    Resources of the Foundation that are provided under specific terms of reference or under specific
    agreements with donors for the purpose of financing wholly or in part the cost of activities consistent with
    the organization’s aims and policies. This also includes the special account for programme support costs.

    Management and administration
    Organizational units whose primary function is the maintenance of the identity, direction and well-being of
    an organization. This will typically include units that carry out the functions of executive direction,
    organizational policy and evaluation, external relations and administration.

    Objective

    An objective in programme budgeting refers to an overall desired achievement involving a process of
    change and aimed at meeting certain needs of identified end-users within a given period.




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HSP/GC/20/9

              Operating reserve

              As required by administrative instruction ST/AI/286, an operating reserve of 20 per cent of the estimated
              annual programme support income is required to protect against unforeseen shortfalls in delivery, inflation
              and currency adjustments or to liquidate legal obligations in case of abrupt terminations of activities
              financed from extrabudgetary resources.

              Output
              Final products or services delivered by a programme or subprogramme to end-users, such as reports,
              publications, training, servicing of meetings, which an activity is expected to produce in order to achieve its
              objectives.

              Performance indicators

              Performance indicators are used to measure the extent to which the objectives or expected accomplishments
              have been achieved.

              Programme support

              Organizational units whose primary functions are the development, formulation and evaluation of an
              organization’s programmes. This will typically include units that provide backstopping of programmes
              whether on a technical, thematic, logistical or administrative basis.

              Subprogrammes

              A set of activities directed towards the attainment of one or more defined objectives or expected
              accomplishments.

              Support budget

              The budget of an organization covering programme support and management and administration of the
              organization.

              Technical cooperation activities

              Activities which provide economic and social development assistance to developing countries and countries
              with economies in transition.

              United Nations regular budget

              The funds provided by the United Nations from its assessed budget to finance the secretariat referred to in
              General Assembly resolution 32/162, section III, paragraph 1.

              Volume increase or decrease
              Any increase or decrease in resource requirements attributable to changes in the level or nature of activities
              carried out by an organization during the current budget period and those proposed for the forthcoming
              budget period. Volume is expressed using the same cost factors applicable for the approved appropriations
              to permit direct comparison of these changes relative to the level of activities approved for the current
              budget period.




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Annex IV
    Assumptions and methodology
    A.     Assumptions for 2006–2007
    1.     Vacancy rates
           1.       Vacancy rates of 5.5 per cent for Professional staff and 3.8 per cent for General Service
           staff are assumed in costing posts for 2006–2007.

    2.     Inflation
            2.     Inflation factors have not been applied either to direct programme activities or to
           regular budget costs, as this will be done later by United Nations Headquarters at the time of
           the adoption of the United Nations regular budget by the General Assembly in 2005.

           3.      The following inflation rates are assumed for Nairobi duty station:
                   (a)      Posts: an average of 8 per cent for the biennium;
                   (b)      Non-staff: an average of 5.4 per cent for the biennium.
           4.      The above inflation rates for posts have been applied to the United Nation's regular
           budget standard salary costs, version 12 (as used in the 2004–2005 initial appropriation), after
           adjusting for the above vacancy rates.

    3.     Exchange rate
           5.      An exchange rate of 78 Kenya shillings to the United States dollar is assumed.

    B.     Methodology: biennial support budget a
            6.     The methodology involves several sequential steps in calculating estimates. These
           calculations are carried out separately for each year of a biennium. Essentially, the
           methodology is to take the approved appropriations for the first year of the current biennium
           and add the volume and cost adjustments, which results in the estimates required for the first
           year of the proposed biennium. Similarly, the approved appropriations for the second year of
           the current biennium are updated to result in the estimates required for the second year of the
           proposed biennium. It should be borne in mind that, normally, the time during which estimates
           are prepared for the proposed biennial support budget is the third quarter of the first year of the
           current biennium. A description of each sequential step follows.

    1.     Volume adjustments
           7.      First, using the approved appropriations as a base, real increases or decreases in
           requirements are calculated and designated as volume changes. Volume changes represent the
           controllable elements in the estimates, subject to the Executive Director’s assessment of what
           the organization requires to perform the tasks with which it is entrusted. Volume changes are
           calculated at the same price levels as the approved appropriations in order to facilitate
           comparison with the currently approved base.




           a
                   The same methodology on cost adjustments will be followed with respect to the biennial programme budget.
                                                                                                                         65
HSP/GC/20/9

      2.      Various cost adjustments
              8.      To the approved appropriations and volume changes are added cost increases or
              decreases attributable to changes in rates or conditions not tied to currency or annual inflation
              adjustments. They reflect only known changes that have occurred in the two years since the
              preparation of the previous biennial support budget. Such cost factors include, for example,
              decisions of the International Civil Service Commission on a variety of staff entitlements (such
              as dependency allowance and education grant). For staff cost adjustments, the standard salary
              cost formulated by United Nations Headquarters is used.

      3.      Currency adjustments
              9.      Currency adjustments are then calculated by year on the total of approved
              appropriations, volume and various cost adjustments. These currency adjustments would
              normally be the difference between the United Nations operational rate of exchange in effect
              on, for example, 1 September of the year preceding the current biennium and, for example, on
              1 September of the first year of the current biennium (that is the time of preparation of the
              proposed biennial support budget).

      4.      Inflation adjustment
              10.     Finally, to complete the picture and to develop the final estimate of requirements for
              the next biennium, the organization must adjust or estimate, as appropriate, inflation over a
              four-year period. These adjustments are calculated by year on the total of approved
              appropriations, volume and various cost adjustments, as adjusted for currency, as follows:

                     (a)     For the first year of the current biennium to the first year of the proposed
              biennium: The existing estimates already embody earlier estimates of inflation. The inflation
              adjustment for this transition therefore includes:
                     (i)     The difference between the application of earlier estimates and the actual
                             inflation for the first six months of the first year of the current biennium;
                     (ii)    The difference between the application of earlier estimates and the revised
                             inflation projection for the last 18 months of the current biennium; and
                     (iii)   The inflation projection for the first year of the proposed biennium;
                     (b)     For the second year of the current biennium to the second year of the proposed
              biennium (i)–(iii) as in (a) above; and

                      (c)     The inflation projection for the second year of the proposed biennium.

              11.     In order to arrive at these estimates of inflation, four inflation factors are used for each
              year as follows:

                      (a)     The first inflation factor is the estimated movement of post adjustment for
              international Professional staff;
                      (b)      The second inflation factor pertains to international travel and common staff
              costs for international Professional staff;
                       (c)    The third factor encompasses salaries and common staff costs for local staff,
              that is General Service and other categories, which may vary significantly from location to
              location; and
                      (d)     The fourth factor relates to all other costs, such as operating expenses.


                                     ______________________________



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