WORLD HEALTH ORGANIZATION EXECUTIVE BOARD 105th Session Provisional agenda item 7.4 EB105/24 26 November 1999
Real Estate Fund Report by the Director-General
I.
STATUS OF PROJECTS CURRENTLY UNDERTAKEN BEFORE 31 MAY 2000 Office Project Replacement of waterproofing of the windows and machinehouse roof of the regional office building Renovation/restructuring of regional office building Construction of a new regional office building in Cairo Amount US $ 50 000
UNDERTAKEN
OR
TO
BE
Remarks Project progressing satisfactorily
The Americas
South-East Asia Eastern Mediterranean
400 000 9 890 000
Some delay in implementation; completion expected by end-1999 Construction work progressing with slight delay. Expected completion by mid-2000. The amount allocated from the Real Estate Fund has been fixed at the level indicated; any costs over that amount will have to be met by the Region from extrabudgetary resources Project completed. Cost overrun as estimated, US$ 460 000 or about 7% of initial estimate. Additional expenditure attributed to technological evolution since first estimate was made in the mid-1990s
Headquarters
Replacement of the local area network (LAN)
6 765 000 (original estimate in Swiss francs and subject to exchange rate fluctuations)
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II.
ESTIMATED REQUIREMENTS FOR THE PERIOD 1 JUNE 2000 TO 31 MAY 2001 Office Project Replacement of the telephone exchange Amount US $ 565 000 Comments The telephone exchanges in the five sites in question are over 10 years old, at the end of their technological life cycle and cannot be easily upgraded. In several sites, it will not be possible to connect the present exchanges to the global private network that is being put into place for voice, fax, video and data transmission. It is also doubtful whether these exchanges are year 2000 compliant. Bearing in mind the age and the condition of these exchanges and the fact that several of them are from different manufacturers, it was decided to ask for a collective tender with a view to having one manufacturer and one maintenance contract for all the exchanges. This collective approach represents cost savings and provides the advantages of a common communications infrastructure that is forward-looking and furthers the “one WHO” concept. At this stage it would not be costeffective to replace the exchanges in the Regional Office for the Americas and the Regional Office for Europe, but this will become necessary in the medium term.
Africa
South-East Asia
Replacement of the telephone exchange
400 000
Europe
Recabling of the LAN infrastructure to make it year 2000 compliant
78 000
Eastern Mediterranean
Replacement of the telephone exchange
425 000
Western Pacific
Replacement of the telephone exchange
365 000
Headquarters
Replacement of the telephone exchange
1 750 000
1. The telephone exchanges in the regional offices for South-East Asia and for the Western Pacific are most at risk of complete breakdown and are not year 2000 compliant. The Director-General has therefore approved their replacement in accordance with resolution WHA23.14(ii) which authorizes her to use the Real Estate Fund for such projects and report the transactions to the Executive Board. The Director-General has also approved, under the same resolution, replacement of the cabling in the European Region to ensure year 2000 compliance.
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2. The Regional Office for Africa has requested use of the Real Estate Fund for the purpose of constructing an office building in Harare. Alternatives are still being investigated but it is possible that an addendum to this report might be submitted to the Board at the opening of the session.
III. FINANCIAL IMPLICATIONS Total estimated requirements US $ 3 583 000 Unencumbered balance US $ 1 441 279 Appropriation from casual income US $ 2 141 721
IV.
ACTION BY THE EXECUTIVE BOARD
3. In the light of the above, the Executive Board may wish to adopt a resolution along the following lines: The Executive Board, Noting the report of the Director-General on the status of projects being financed from the Real Estate Fund and the estimated requirements of the Fund for the period 1 June 2000 to 31 May 2001, RECOMMENDS to the Fifty-third World Health Assembly the adoption of the following resolution: The Fifty-third World Health Assembly, Having considered the report of t he Director-General on the status of projects financed from the Real Estate Fund and the estimated requirements of the Fund for the period 1 June 2000 to 31 May 2001; Recognizing that certain estimates must necessarily remain provisional, 1. AUTHORIZES the financing from the Real Estate Fund of the expenditures indicated under Section III of the Director-General’s report, at an estimated cost of US$ 3 583 000; 2. APPROPRIATES to the Real Estate Fund from casual income the sum of US$ 2 141 721.
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ANNEX
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REAL ESTATE FUND ESTIMATED SITUATION AS AT 31 DECEMBER 1999 (expressed in US dollars)
1 January 1970 31 December 1995 1. 2. BALANCE AT 1 JANUARY INCOME Balance of Revolving Fund for Real Estate Operations (resolution WHA23.14) ............................................................................. Casual income appropriated (resolutions WHA23.15, WHA24.23, WHA25.38, WHA28.26, WHA29.28, WHA33.15, WHA34.12, WHA35.12, WHA36.17, WHA37.19, WHA39.5, WHA42.10, WHA43.6, WHA44.29, WHA46.22, WHA47.25, WHA48.22, WHA50.10, WHA50.11, WHA52.15) ...................................................... Transfer from Part II of the Working Capital Fund (resolution WHA23.15) ............................................................................. Rents collected .............................................................................................. Interest............................................................................................................ Other................................................................................................................ Total income Total funds available 3. 4. OBLIGATIONS AND EXPECTED OBLIGATIONS ....................................... BALANCE AT 31 DECEMBER 1999 ................................................................. a b
1996-1997 11 875 877
1998-1999 a 13 184 075
Total (from inception) -
-
68 990
-
-
68 990
32 471 436 1 128 414 8 040 246 6 211 955 1 567 47 922 608 47 922 608 36 046 731 11 875 877
10 705 000 748 519 1 015 250 12 468 769 24 344 646 11 160 571 13 184 075
(2 049 000)b 160 000 1 048 000 (841 000) 12 343 075 10 901 796b 1 441 279
41 127 436 1 128 414 8 948 765 8 275 205 1 567 59 550 377 58 109 098 1 441 279
Estimated on data available in 1999.
Funds appropriated for six projects in the Regional Office for Africa (resolution WHA50.10) for a total of US$ 1 654 000, for one project in the Regional Office for the Americas (resolution WHA47.25) for US$ 250 000 and for one project in the Regional Office for South-East Asia (resolution WHA45.9) for US$ 145 000 have been refunded to casual income as per resolution WHA52.15 (total refunded US$ 2 049 000).