Mr. Chairman,

1. I have the honour to speak on behalf of the Group of 77 and China on agenda item 131: Review of the Efficiency of the Administrative and Financial Functioning of the United Nations: Procurement.

2. The Group would like to thank Mr. Stephen Cutts, Assistant Secretary-General for Central Support Services, for introducing the Secretary-General's report and Mr. Babou Sene, Vice-Chair of the Committee on Administrative and Budgetary Questions (ACABQ), for introducing its related report. The Group would also like to thank Inspector Cihan Terzi for introducing the Joint Inspection Unit report entitled "Review of Long-Term Agreements in Procurement in the United Nations system" and Mr. Ken Herman, Senior Adviser on Information Management Policy Coordination at the United Nations System Chief Executives Board, for introducing the Secretary-General's note on the JIU report.

Mr. Chairman,

3. Procurement activities are a key aspect of United Nations management in view of the growing complexity and size of the operations undertaken by the Organisation. The G-77 and China supports measures that increase the efficiency, transparency and cost-effectiveness of the UN procurement system.

4. The Group notes the implementation of a new solicitation methodology in the acquisition of air assets and logistics services from invitation to bid to request for proposal. The Group will seek further information on the new evaluation process and its impact on the geographical representation of participating vendors.

Mr. Chairman,

5. The Group of 77 and China emphasises the importance of increasing procurement opportunities for vendors from developing countries. Equal, fair and non-discriminatory access must be given to companies from developing countries. The Group notes the efforts presented in the Secretary-General's report and will seek to intensify efforts in that regard. We support, in particular, the use of business seminars to generate awareness about the opportunities and the procedural requirements to participate in procurement activities at the United Nations.

6. The Group notes the benefits realised since the establishment of the Regional Procurement Office in Entebbe and will seek further information on the Secretariat proposals regarding the future of the Office, in the context of the upcoming consideration of a global service delivery model by the General Assembly.

Mr. Chairman,

7. The Group recalls that the General Assembly has not approved the concept of sustainable procurement and expresses its concern with the intention of the Secretariat to initiate a so-called low-impact pilot project on sustainable procurement. It is the Group's view that there is a lack of clarity regarding this concept and its possible impact on the diversification of the origin of vendors and on international competition, particularly for developing countries.

8. The Group of 77 and China would like to assure you of its readiness to engage constructively in the upcoming discussions with the aim of concluding this agenda item in a timely fashion.

I thank you, Mr. Chairman.