Distr.

GENERAL

UNEP/CBD/COP/1/14

15 October 1994

ORIGINAL: ENGLISH

CONFERENCE OF THE PARTIES

TO THE CONVENTION

ON BIOLOGICAL DIVERSITY

First meeting

Nassau, 28 November - 9 December 1994

Item 10 of the provisional agenda

BUDGET FOR THE SECRETARIAT OF THE CONVENTION

Note by the Interim Secretariat

1. INTRODUCTION

1.	Article 23, paragraph 3, of the Convention on Biological Diversity requires that the Conference of the Parties at each ordinary meeting adopt a budget for the financial period until the next ordinary meeting.

2.	The second session of the Intergovernmental Committee on the Convention on Biological Diversity, recommended that the Interim Secretariat prepare a detailed draft budget, based on the functions and tasks likely to be assigned to it by the Conference of the Parties. It was recommended that a separate budget line be included for meetings of the Subsidiary Body on Scientific, Technical and Technological Advice (hereinafter referred to as the Subsidiary Body) within the budget of the Secretariat of the Convention (UNEP/CBD/COP/1/4, paragraph 293 (d)). The Committee also recommended that the first meeting of the Conference of the Parties should consider a Medium-Term Programme of Work to guide the evolution of the matters under the Convention. A document to facilitate the discussion on this item has been prepared for the meeting (UNEP/CBD/COP/1/13). The preparation of the draft budget has therefore taken into account not only the items of work identified in the course of the work of the Intergovernmental Committee, but also the tasks that are expected to emerge from the Medium-Term Programme, for all the organs and mechanisms under the Convention, which will need to be supported by the Secretariat.

3.	The draft financial rules recommended by the Intergovernmental Committee, require the preparation of budget proposals for two calendar years at the minimum (UNEP/CBD/COP/1/10, annex I, paragraph 7 (a)).

4.	In this context it should be recalled that article 40 of the Convention provided for the Secretariat on an interim basis for a period between the entry into force of the Convention and the first meeting of the Conference of the Parties. Recognizing that the first meeting of the Conference of the Parties might not be in a position to complete the process required for designating the permanent Secretariat, the Committee recommended that the selection of the Secretariat be addressed at the second meeting of the Conference of the Parties, and that the Interim Secretariat be extended until that second meeting (UNEP/CBD/COP/1/4, paragraph 122).

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5.	In the light of the above recommendations, the Interim Secretariat has prepared draft budget proposals for the calendar years 1995-1996 shown in annex I to the present note. In this context, 1995 has been regarded as a transition year to the permanent Secretariat which it is assumed will be operational in January 1996. The budget proposal for 1995 therefore provides for the capacity and activities required to carry out the work programme foreseen for 1995, as well as a perspective for the requirements for the early stages of the permanent period. Consequently, the proposed budget for 1996 is indicative in nature, recognizing that further clarity about the scope and the specifics of the work programme, and consequently about the capacity, capability, and funding required for the permanent Secretariat, will be forthcoming during the transitional year 1995.

6.	The proposals for staffing for 1995 may therefore be seen as a complement towards what might be required in range and level of capacity for the permanent period. All the positions are budgeted for the full calendar year, although it is recognized that recruitment will take some time. During that time, however, short-term consultancies may be arranged against these positions to allow the programme of work to proceed, thereby maintaining momentum in implementing the mandate under the Convention.

7.	The budget proposals also reflect the need for financial support for participation by developing countries and countries with economies in transition in the expected meetings of the Conference of the Parties and its Subsidiary Body.

8.	The Intergovernmental Committee also recommended that contributions to the budget by parties be estimated, on the different bases considered by the Committee and reflected in paragraph 4 of the draft financial rules (UNEP/CBD/COP/1/4, paragraph 109). These estimates are shown in annex II to this note. In this context, the Conference of the Parties should note that the basis for contributions by parties will be determined under item 6.6 of the provisional agenda: Financial rules governing the funding of the Secretariat of the Convention (UNEP/CBD/COP/1/10).

9.	The Conference of the Parties is requested to:

(a)	Consider the proposed budget for 1995;

(b)	Take note of the indicative budget for 1996;

(c)	Consider the support required for participation of developing countries and countries with economies in transition in meetings of the Conference of the Parties and its Subsidiary Body.

2. CONSIDERATIONS RELATED TO THE CONSTRUCTION

OF SECRETARIAT BUDGET 1995-1996

10.	The work programme and activities of the Interim Secretariat since its establishment in October 1993 up to the present meeting of the Conference of the Parties has been described in the report by the Executive Director of the United Nations Environment Programme on the Interim Secretariat of the Convention on Biological Diversity (UNEP/CBD/COP/1/INF.2). The provision for the Secretariat for the transitional year 1995 and the first year of the permanent Secretariat, 1996, can now be oriented to continuing the work begun in the interim period as well as initiating the range of activities and tasks that are expected to emerge from the decisions of the first meeting of the Conference of the Parties.

11.	As a result of the work that would be carried out in the transitional year by the Secretariat and its Subsidiary Body, and the decisions arising therefrom that are likely to be taken by the second meeting of the Conference of the Parties (expected to be held in 1995), a more precise understanding of the requirements to carry out the work and activities for the year 1996 and beyond will be obtained.

12.	It is assumed that institutional arrangements for the provision of the Interim Secretariat and the location of the Interim Secretariat will continue in the transitional year. The basis for costing the Secretariat for 1996 will be affected inter alia by the particular institutional arrangement and its location.

13.	Subject to the decisions to be taken by the Conference of the Parties at the present meeting, the following assumptions have been made:

(a)	The second and third meetings of the Conference of the Parties will be held in 1995 and 1996 respectively;

(b)	The maximum number of officers of the bureau of the Conference of the Parties being considered under rule 21 of the draft rules of procedure (UNEP/CBD/COP/1/2) will be five;

(c)	In keeping with rule 3 of the draft rules of procedure (UNEP/CBD/COP/1/2), the second meeting of the Conference of the Parties in 1995 will be in Geneva;

(d)	The second meeting of the Conference of the Parties will complete the process of establishment of the permanent Secretariat including taking a decision about its location, which will then clarify the basis for budgeting for 1996;

(e)	Its bureau will meet twice each year;

(f)	With regard to the functioning of the Subsidiary Body costing has been based on the following:

(i)	It will meet in 1995 and 1996;

(ii)	Its first meeting will be held in Geneva;

(iii)	The number of officers of its bureau will be the same as for the Conference of the Parties;

(iv)	Its bureau will meet twice each year;

(v)	Two panels consisting of 10 persons each (2 per region) will meet once a year.

(g)	Provision for administrative overhead costs has been fixed at 13% of the costs expected to be funded by contributions from the parties, pending a decision on rule 12 of the draft financial rules for the administration of the trust fund for the Convention (UNEP/CBD/COP/1/10).

14.	No assumption has been made as to the venue of the meetings of the Conference of the Parties and its Subsidiary Body for 1996 as, unless otherwise decided, these venues will be determined by the decision of the Conference of the Parties on the location of the permanent Secretariat.

3. STRUCTURE OF THE DRAFT BUDGET

15.	The presentation is formatted along the lines indicated by the second session of the Intergovernmental Committee (UNEP/CBD/COP/1/4, para. 108). The grouping of the functions reflects the major tasks and activities arising from the work of the Intergovernmental Committee and anticipated from the Medium-Term Programme of Work of the Conference of the Parties.

16.	The draft budget is divided into two sections:

Section A reflects the funding requirements for personnel, equipment, travel, information and communication needs of the Secretariat required for carrying out its functions; tasks and activities to facilitate the operation and implementation of the Convention; servicing costs of meetings of the Conference of the Parties and its bureau, and for the Subsidiary Body, its bureau and panels;

Section B reflects the funding requirements for participation by developing countries and economies in transition in the meetings of both the Conference of the Parties and its Subsidiary Body.

4. SOURCES OF FUNDING

17.	Together, Section A (functions expected to be funded by contributions from parties) and Section B (functions expected to be funded by other contributions) of annex I to the present note show budgetary requirements for the administration of the Secretariat of the Convention in 1995.

18.	Annex II to the present note indicates the level of contributions from the parties using different bases of estimation as found in the draft financial rules governing the funding of the Secretariat of the Convention (UNEP/CBD/COP/1/10).