1. UNOPS UNOPS Update for Executive Board Members 23 May 2006

2. UNOPS 2005 Financial Projections ( in USD million ) Beginning fund balance 14.46 14.40 Income/(loss) from 05 ops 2.91 5.18 Subtotal 17.37 19.58 Reimbursement 2003 OFFP income (11.51) OFFP income (11.51) WFP ( 2.97) WFP ( 2.97) Ending Fund Balance 17.37 5.10 EB approved Year-End January 2005 projected

3. UNOPS UNOPS Financial Indicators

4. UNOPS UNOPS Business Acquisition: 2000-2005

5. UNOPS Update on the Transition l On 1 July UNOPS HQ and support services will operate from Copenhagen –Consolidation resulting in a diminution of number of staff and cost –Business processes review of Key functions –Transfer of lease obligation of 4 th floor of Chrysler building –Career center and staff support in New York l Realignment of Client Services Divisions –One Africa Division located in Nairobi –Consolidation of Europe based operation by the end of the year –Reconfiguration of Dubai office to supporting Middle East based projects and act as provider of rapid response capacity –Latin America Division temporarily operating from Lima Perou l Financial Implication –Current approach and changes on target –Transition fund supporting organizational changes

6. UNOPS Transition Challenges l Business Continuity and Business Acquisition –Outreach to clients and communication l Risk Mitigation Factors –Put aside 500k for overlap of functions during the transition l Institutional Memory –Reassignment of 23 professionals to Copenhagen and incentive for local staff to apply on post in Copenhagen l Implementing cost reduction on target –Close monitoring of financial impact of changes l Alignment of the change process and internal buy in –Internal Communication strategy and mobilization of staff in the Business Process Review