Decision 46/35

Following a discussion on the possibility of recalculating the estimated core unit costs on the basis of a 3 per cent annual increase from the 2002 costs, the Executive Committee decided:

1. To note the review of administrative costs presented in document UNEP/OzL.Pro/ExCom/46/40;
2. To extend the operation of decision 38/68 and its administrative cost regime for the 2006-2008 triennium, with the following modifications:
   1. The base rate for core unit costs for UNDP and UNIDO would be US $1.7 million instead of US $1.5 million;
   2. An annual increase of up to 3 per cent for UNDP, UNIDO and the World Bank based on budgets to be submitted for approval at the last Meeting of the year for the following year;
3. To review the operation of the administrative cost regime as modified by the present decision before the end of the following triennium; and
4. To note that, for UNIDO to maintain its current level of administrative costs, it would need either to increase its revenue significantly, including continued and increasing subsidies from UNIDO, or to significantly reduce its administrative costs, or both.