Mr. Chairman,

I have the honour to speak on behalf of the Group of 77 and China on agenda item 134: Proposed Programme Budget for the biennium 2016-2017: Global Service Delivery Model.

At the outset the Group of 77 and China would like to thank Mr. Yukio Takasu, Under Secretary-General for Management, for introducing the Report of the Secretary-General on the Framework for a global service delivery model of the United Nations Secretariat, contained in document A/70/323. The Group would also like to thank Mr. Carlos Ruiz Massieu, Chair of the Advisory Committee on Administrative and Budgetary Questions, for introducing the related report of that Committee, as contained in document A/70/436.

Mr. Chairman,

The Group of 77 and China continues to support business transformation initiatives of the United Nations that aim at improving service delivery to Member States in the most efficient and cost-effective manner. In this regard, we attach great importance to the consideration of the proposed framework for the Global Service Delivery Model to ensure efficient and effective mandate delivery.

The Group of 77 and China notes that the proposed framework is presented in response to General Assembly mandates, including those outlined in resolution 67/246. The Group also notes that the rationale for a new service delivery model for the Organization is aimed at responding to increasing complexities in the administrative structures, policies, procedures and delegations of authority in the Organization that covers some 98 standalone entities at more than a hundred sites that serve individual duty stations, specific departments and offices.

The Group further takes note of the intention of the Secretary-General to develop the GSDM in a phased manner, including administrative support services, a business case and location options for shared service centres; the baseline for the administrative set-up in an Umoja-operating environment as well as physical consolidation of service delivery functions at the global, regional and local levels.

Mr. Chairman,

The Group of 77 and China notes that the information presented to the General Assembly remains of general nature and that detailed proposals are to be presented at a later stage. Like the Advisory Committee, the Group remains of the view that such information should have been presented at an earlier stage, given its general nature and taking into account the existing experience and expertise available within the United Nations Secretariat in the provision of shared services, in particular at offices away from Headquarters and at the Department of Field Support.

With regard to the development of the Model, the Group would like to emphasize the importance of establishing clearly at the outset the goals and objectives of the initiative and to conduct a detailed cost-benefit analysis as well as establishing a business case to support proposals. The Group would also like to emphasize that the development of the Model should take into account the experience and lessons learned from the ongoing and concluded business transformation projects including IPSAS, Umoja, human resources reforms including staff mobility, ICT strategy and global field support strategy.

In this context, the Group will seek to gain a better understanding of how the timing proposed by the Secretary-General will be conducive to full integration and coherence between the aforementioned reform initiatives, including with regard to fully realizing the benefits of those initiatives in a timely manner.

The Group would like to emphasize that the development of the Model should avoid duplication and overlapping of the functions and that it should be built, to the extent possible, on existing infrastructure and expertise, including those available at the offices away from headquarters and in field missions.

The Group will be interested to learn how the functions and infrastructure of the Regional Service Center, Entebbe, and the United Nations Logistics Base in Brindisi are going to be factored in to the upcoming proposal. The Group will also be interested to learn in detail how the Regional Procurement Office in Entebbe will be factored in to the Model as requested by the General Assembly.

Mr. Chairman,

With regards to governance, the Group of 77 and China would like to recall that strong leadership and effective project governance is an essential element for success of this complex, organization-wide business transformation initiative. The Group, therefore, urges the Secretary-General to ensure that the development of the Model incorporates mechanisms for senior management ownership and accountability so as to guarantee successful delivery of the intended objectives.

The Group of 77 and China has taken note of the information related to the preliminary scope, delivery modalities, location assessment, client relationship management as well as funding of shared services and looks forward to detailed discussion and clarification on these matters during informal consultations. We will also be interested to clarity on compliance of the proposed framework with the previous comments and observations by the Board of Auditors and the Advisory Committee.

Mr. Chairman,

In conclusion, I would like to assure you of the Group's readiness to engage constructively on this important agenda item with the aim of reaching a successful outcome in a timely manner.

I thank you, Mr. Chairman.