This is the accessible text file for GAO report number GAO-07-414R 
entitled 'Update on the United Nations' Capital Master Plan' which was 
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United States Government Accountability Office: 

Washington, DC 20548: 

February 15, 2007: 

The Honorable Richard G. Lugar: 
Ranking Minority Member: 
Committee on Foreign Relations: 
United States Senate: 

Subject: Update on the United Nations' Capital Master Plan: 

Dear Senator Lugar: 

Since 2000, the United Nations (UN) has been developing a Capital 
Master Plan (CMP) to renovate its headquarters complex in New York City 
to bring it into compliance with current life safety and building 
codes. The planned renovation will also enable the UN to address 
technology and security needs. Since 2001, we have reported on the UN's 
efforts to develop the CMP.[Footnote 1] As we finalized our most recent 
report in November 2006, the UN Secretary-General released the latest 
progress report on the CMP and recommended that the UN General Assembly 
approve a scope, schedule, budget, and funding mechanism for the CMP. 
The Secretary-General's report also included an updated cost estimate 
of $1.88 billion for the project.[Footnote 2] This estimate for the CMP 
is about $128 million higher than the previous estimate, which was 
released in 2005. 

As the host country and largest contributor to the UN, the United 
States continues to have a significant interest in the success of the 
renovation. In this report, we (1) analyze the changes in the latest 
cost estimate and (2) describe the latest decisions the UN General 
Assembly made in regard to the CMP and the resulting cost to the United 
States to fund the project. 

To analyze the changes in the latest cost estimate, we reviewed 
pertinent UN documents, including the Secretary-General's third and 
fourth annual progress reports for the CMP.[Footnote 3] We also 
examined construction cost inflation projections from the Department of 
Defense, Global Insight, and Means Construction Cost Indexes to assess 
the inflation assumptions used in the: 

CMP cost estimate and interviewed UN officials and the CMP office's 
program management consultant, who developed the estimate. To report on 
the latest General Assembly decisions regarding the CMP and the 
resulting cost to the United States, we interviewed Department of State 
(State) and UN officials and reviewed pertinent UN documents, including 
General Assembly resolutions, U.S. budget submission documents, and 
applicable laws.[Footnote 4] We conducted our work at the UN in New 
York City and at the Department of State in Washington, D.C., from 
December 2006 to January 2007 in accordance with generally accepted 
government auditing standards. 

Results in Brief: 

A total of $214 million in cost increases and $86 million in cost 
decreases were identified in the latest cost estimate, for a net cost 
increase of $128 million. Most of the cost categories in the 2006 CMP 
cost estimate increased, but others decreased from the previous 
estimate. The increase in the cost categories largely resulted from 
higher rates of projected future inflation, further definition of the 
scope of work to be done, and a delay in the start of the project. 
Reductions were made to some cost categories because the design had 
progressed (reducing the uncertainty in the project), and areas were 
identified where the construction costs could be cut without affecting 
the quality or functionality of the project. 

In December 2006, the General Assembly approved a budget for the CMP of 
$1.88 billion, the final project scope, and a project schedule with a 
completion date of 2014. To fund the CMP, the General Assembly decided 
to allow member states the option of either making a onetime payment or 
equal payments over 5 years. Assessments are based upon each member 
state's regular budget rate of assessment. In addition, the General 
Assembly approved a $45 million working capital reserve to cover 
temporary project cash flow deficits that might occur. Payment for the 
single or first assessment and the working capital reserve is due 
around May 1, 2007. According to a State official, the United States is 
expected to pay its assessment of $377.7 million over 5 years, for a 
total of $75.5 million per year. Also, the United States has been 
assessed about $9.9 million for its share of the working capital 
reserve. The President's Fiscal Year 2008 Budget request includes about 
$85 million to pay the U.S. assessments. 

Background: 

Although the original UN headquarters complex in New York City was 
considered among the most modern facilities when construction was 
completed in 1952, it does not conform to current life safety and 
building codes and does not meet UN technology or security 
requirements. The UN Secretary-General first proposed a comprehensive 
renovation of the complex, known as the CMP, in June 2000. Under the 
CMP, the UN intends to renovate the complex to make it conform to 
current codes and meet technology and security requirements. This 
process will involve upgrading or replacing all major building systems, 
including the electrical, plumbing, fire suppression, and heating and 
air conditioning systems, as well as reinforcing the complex's 
structural integrity and removing all asbestos. 

With approval from the General Assembly, the CMP office has worked on 
planning and designing the renovation, including work considered to be 
optional. The CMP has continued to evolve and the Secretary-General has 
reported on its progress--including updating the estimated cost of the 
project--in 2002, 2005, and 2006. In 2005, the CMP office's cost 
estimate for the project was approximately $1.75 billion, including the 
optional work. Between 2000 and 2006, the UN appropriated $160 million 
to plan and design the CMP and to obtain space to temporarily relocate 
UN staff and activities during the renovation. 

We have previously reviewed UN efforts to develop the CMP and prepare 
cost estimates. In June 2001 and May 2003, we reported that UN 
renovation planning efforts had been reasonable and conformed to 
leading industry practices. In our most recent report, in November 
2006, we noted that UN officials continued to use leading industry 
practices to develop the UN headquarters renovation project, but since 
the CMP office relies on existing UN procurement practices, 
implementation of the renovation in the future could become vulnerable 
to the numerous UN procurement weaknesses that GAO has previously 
reported.[Footnote 5] In our reports, we also noted that the cost 
estimates have been preliminary and should be expected to change and 
that without decisions from the UN General Assembly on the budget and 
funding for the CMP, costs could increase as a result of delays in the 
project schedule. 

Some Elements of CMP Cost Estimate Increased, while Others Decreased, 
Resulting in a $128 Million Increase in Total Project Cost: 

Some of the cost categories in the 2006 CMP cost estimate increased, 
while others decreased, resulting in an increase of $128 million for a 
total project cost of $1.88 billion. Most of the cost categories in the 
estimate increased, largely as a result of higher rates of projected 
future inflation and changes in the definition of the work to be done. 
Reductions were made to some cost categories because the design had 
progressed (reducing the uncertainty in the project), and areas were 
identified where the construction costs could be cut without affecting 
the quality or functionality of the project. A total of $214 million in 
cost increases and $86 million in cost decreases were identified for a 
net cost increase of $128 million (see fig. 1). The CMP is still being 
designed and the CMP office will update the project cost estimate 
annually. While the cost estimate can be expected to change, the UN 
General Assembly has clearly set the expectation for the Secretary- 
General to make every effort to maintain the current overall estimate 
of $1.88 billion. 

Figure 1: Cost Increases and Decreases in the CMP Estimate from 2005 to 
2006: 

[See PDF for Image] 

Note: The CMP cost estimates are reported in dollars as of January in 
the year the estimate was released and thus do not include the effect 
of inflation for the year. 

[A] Professional fees and management--costs for CMP office staff and 
overhead, including leasing of office space; all UN staff support 
including procurement and legal services; project management consultant 
services that enhance the CMP office capabilities; planning and design 
services; and project management fees. 

[B] Swing space--cost of relocating staff and operational functions 
displaced by the renovation into temporary space, including the cost of 
leases and construction of a temporary building. This line item 
includes contingencies, professional fees, management costs, and 
escalation specific to the swing space. 

[C] Scope options--cost of work originally considered to be optional by 
the UN for inclusion in the renovation. This line item includes 
contingencies, professional fees, management costs, and escalation 
specific to the scope options. Scope options contain recommended work 
in three areas: (1) security, (2) redundancy to improve the reliability 
of building systems, and (3) sustainability to mitigate the 
environmental impact of the buildings. 

[D] Escalation--reserve to account for the effect of inflation over the 
remaining life of the project on the price of materials and labor. 
Escalation in the 2006 estimate covers the period 2006 to 2014 for the 
construction, some professional fees and management, and contingency 
line items. 

[E] Contingency--reserve to account for unforeseen conditions and other 
changes that might arise during the renovation project. 

[F] Construction--cost of the labor and materials for the specific 
renovation work. 

[End of figure] 

² Escalation increased by $71.5 million. Escalation increased because 
the assumptions for inflation changed and the start of the project was 
delayed. The CMP office's cost estimator revised the assumptions for 
inflation used in the 2006 estimate upward by 1 percent in 2006 and 0.5 
percent in 2007 to reflect changes in the New York City construction 
market. Many factors affect future inflation rates so they are 
difficult to estimate. Our review of projected inflation rates for the 
construction industry showed the rates used in the CMP estimate to be 
in line with these projections. The increase in escalation also 
reflects the effect of inflation on the project because of a later 
starting date. The start of the project was delayed by about a year 
when the General Assembly did not provide final approval for the 
project and its financing in 2005. 

Escalation may increase in future estimates if the assumptions for 
inflation prove to be too low or the project schedule is delayed. 

² Scope options cost increased by $69.4 million. The initial concept 
for the scope options was developed in 2002 and contained recommended 
work in three areas: (1) security, (2) redundancy to improve the 
reliability of systems, and (3) sustainability to mitigate the 
environmental impact of the buildings. The 2006 cost estimate includes 
the same areas of work for the scope options, but the work recommended 
under each area is different than the work previously anticipated and 
resulted in cost increases. In the 2006 estimate, the costs for 
enhancing security increased over the cost in the 2005 estimate by 
$132.5 million, while the cost for both redundancy and sustainability 
decreased by $47.5 million and $15.6 million, respectively. The 
enhanced security work would provide additional blast protection for 
the structures in the UN complex. The estimate for scope options also 
increased because of higher projected rates of inflation and delays in 
the project schedule. 

² Swing space costs increased by $50.2 million. Swing space includes 
three components: (1) temporary lease of office space for displaced 
staff, (2) temporary lease of library space, and (3) a temporary 
conference building to be constructed on the north lawn of the UN 
complex. The cost for each of these components increased in the 2006 
estimate. The CMP office has been working with a real estate broker to 
identify suitable office space in midtown Manhattan. The midtown 
Manhattan office building vacancy rate has decreased over the last 
year, and the rental rates and estimated costs for preparing the space 
to meet the UN's needs have increased. Costs have also increased for 
the space available to relocate much of the library during the 
renovation, and all of the sites identified would require the UN to 
install a new ventilation and cooling system to protect the library 
materials. The cost for the temporary building increased as a result of 
concerns identified with subsurface water that may affect the cost of 
constructing the building. The cost of the temporary building also 
increased because of higher projected rates of inflation and delays in 
the project schedule. 

While the estimate for swing space is based on identified sites for 
office and library space, the UN is vulnerable to further changes in 
the market until it signs contracts for the leases. 

² Professional fees and management costs increased by $22.4 million. 
The estimated cost of professional fees and management increased for 
several reasons. First, the CMP program manager determined that the 
cost for a construction manager would likely be higher because of 
changes in market conditions. Second, the CMP budget now includes costs 
for temporarily relocating some UN staff within the UN complex that had 
previously been expected to be paid from the UN's regular budget. Last, 
the estimate was increased to cover potential additional expert 
consultant services, testing costs, and legal and other project 
expenses. 

* Contingency reserve decreased by $31.3 million. During the design and 
implementation of a project, it is expected that conditions or issues 
will arise that could not be anticipated. It is industry practice to 
add contingency, as a percentage of the design and construction costs, 
to a project to account for these unforeseen conditions. As the project 
moves through the design process, there are fewer opportunities for 
unforeseen conditions to arise and, thus, the contingency may be 
reduced. Given the progression of the project design, the contingency 
was reduced because there is now less uncertainty about conditions that 
may affect the design. 

The CMP office plans to develop a risk assessment for the CMP starting 
in February 2007. This process should help it better identify risks to 
the project and develop plans to minimize these risks. It may also help 
the CMP office determine if the project's contingency reserve needs 
further adjustments. 

Construction costs decreased by $54.3 million. The current construction 
estimate is based on revised design development documents and has 
undergone a detailed scope review and value engineering to identify 
opportunities for reducing the construction cost.[Footnote 6] Changes 
made as a result of value engineering are intended to save money 
without changing the functionality of the space. Some of the larger 
dollar saving changes that were made include: 

* deleting a large number of private offices and moving to a more open 
floor plan ($11.5 million), 

* using a wireless local area network (LAN) in conference rooms instead 
of hard-wiring them ($2.9 million), 

* reducing the audiovisual allowance for the Secretariat building 
because some of the equipment already exists and is reusable ($2.8 
million), 

* reducing the scope of the basement renovation ($2.3 million), and: 

* eliminating the dedicated electrical receptacles from each delegate's 
desk and providing power strips instead ($1.9 million). 

If it is later determined that these changes cannot be made without 
changing the functionality of the space, we would expect the cost to be 
added back into the estimate. CMP officials noted that value 
engineering is an ongoing process and they will continue to look for 
opportunities to reduce project costs. 

In addition to being updated to reflect changes in the specific cost 
categories as discussed above, the 2006 estimate reflects the impact of 
inflation on the cost categories through 2005. Since escalation is a 
reserve used to account for inflation over the life of the project, 
each year the cost estimate will be updated and the cost of inflation 
over the year will be moved from escalation to the appropriate cost 
categories. Transfers from escalation will not have a net effect on the 
overall cost estimate, but they will result in changes to individual 
cost categories, as shown in table 1. 

Table 1: Comparison of 2005 and 2006 Estimated Total CMP Cost by Cost 
Category: 

Dollars in millions.  

Cost category: Construction; 
2005 estimate: $734.6; 
Transfers/changes to 2005 estimate: Transfers from escalation[A]: 
$58.8, 2005 inflation; 
Transfers/changes to 2005 estimate: Changes: -$54.3, Value engineering -
32.2, Design refinement -22.1; 
Net changes: $4.5; 
2006 estimate: $739.1. 

Cost category: Professional fees and management; 
2005 estimate: $144.3; 
Transfers/changes to 2005 estimate: Transfers from escalation[A]: 40.2, 
2005 inflation 11.5, Future inflation 28.7; 
Transfers/changes to 2005 estimate: Changes: 22.4, Additional money for 
construction manager 6.4, Additional experts/studies 9.0, Additional 
cost for on-site relocation 7.0; 
Net changes: 62.6; 
2006 estimate: 206.9. 

Cost category: Contingency; 
2005 estimate: 184.4; 
Transfers/changes to 2005 estimate: Transfers from escalation[A]: 14.8, 
2005 inflation; 
Transfers/changes to 2005 estimate: Changes: -31.3, Reduced risk as 
design has progressed; 
Net changes: -16.5; 
2006 estimate: 167.9. 

Cost category: Escalation; 
2005 estimate: 360.2; 
Transfers/changes to 2005 estimate: Transfers from escalation[A]: -
113.8, 2005 inflation; 
Transfers/changes to 2005 estimate: Changes: 71.5, Changes in projected 
inflation/schedule; 
Net changes: -42.3; 
2006 estimate: 317.9. 

Cost category: Swing space; 
2005 estimate: 164.3; 
Transfers/changes to 2005 estimate: Transfers from escalation[A]: 
[Empty]; 
Transfers/changes to 2005 estimate: Changes: 50.2, Office space rental 
rates 23.5, Office space fit-out 9.1, Library space rental rates 2.5, 
Library space fit-out 3.7, Temporary building fit-out and water issues 
11.4; 
Net changes: 50.2; 
2006 estimate: 214.5. 

Cost category: Scope options: Security, Redundancy, Sustainability; 
2005 estimate: Scope Options: 161, Security: 33.5, Redundancy: 84.0, 
Sustainability: 43.5; 
Transfers/changes to 2005 estimate: Transfers from escalation[A]: 
[Empty]; 
Transfers/changes to 2005 estimate: Changes: Scope options: 69.4, 
Project escalation 24.5, Scope development 44.9; 
Net changes: 69.4; 
2006 estimate: Scope options: 230.4, Security: 166.0, Redundancy: 36.5, 
Sustainability: 27.9. 

Total;  
2005 estimate: $1,748.8; 
Transfers/changes to 2005 estimate: Transfers from escalation[A]: 0; 
Transfers/changes to 2005 estimate: Changes: [Empty]; 
Net changes: $127.9; 
2006 estimate: $1,876.7. 

Source: GAO analysis of UN documents. 

[A] Amounts were moved from the escalation line item to account for 
actual inflation experienced in 2005 and for future inflation rates 
written into contracts awarded for professional fees and management. 

[End of table] 

General Assembly Approves Project Scope, Budget, Schedule, and Funding: 

In December 2006, the UN General Assembly approved the scope, schedule, 
and budget for the renovation. In addition, the General Assembly 
decided to fund the project through either a single or 5-year 
assessment on member states and to establish a working capital reserve 
and a letter of credit for the CMP. In approving the project, the 
General Assembly also agreed to the recommended scope options, which 
were previously discussed, and a total revised budget for the 
renovation at a cost not to exceed $1.88 billion. The General Assembly 
approved the renovation schedule as shown in table 2 with a projected 
completion date of 2014. 

Table 2: Anticipated Schedule for the CMP: 

Activity: Swing space; 
Start date: Early 2007; 
Completion date: Late 2008. 

Activity: Swing space: Prepare leased office space for occupancy; 
Start date: Early 2007[A]; 
Completion date: Late 2007. 

Activity: Swing space: Prepare leased library space for occupancy; 
Start date: Mid 2007[A]; 
Completion date: Late 2007. 

Activity: Swing space: Early-action work (renovate existing North Lawn 
building, add centralized technology center); 
Start date: Early 2008[B]; 
Completion date: Late 2008. 

Activity: Swing space: Construction of temporary conference building; 
Start date: Mid 2007; 
Completion date: Mid 2008. 

Activity: Renovation of United Nations headquarters; 
Start date: early 2008; 
Completion date: Mid 2014. 

Activity: Renovation of United Nations headquarters: 
Basements/infrastructure; 
Start date: Mid-2008; 
Completion date: early 2011. 

Activity: Renovation of United Nations headquarters: General assembly 
building; 
Start date: Mid-2008[C]; 
Completion date: Early 2011. 

Activity: Renovation of United Nations headquarters: Conference 
building; 
Start date: Early 2011; 
Completion date: Late 2013. 

Activity: Renovation of United Nations headquarters: Secretariat 
building; 
Start date: Early 2008[D]; 
Completion date: Late 2013. 

Activity: Renovation of United Nations headquarters: South Annex 
building; 
Start date: Late 2013; 
Completion date: Early 2014. 

Activity: Renovation of United Nations headquarters: Library building; 
Start date: Late 2012; 
Completion date: Late 2013. 

Activity: Renovation of United Nations headquarters: Site/landscaping; 
Start date: Late 2012; 
Completion date: Early 2014. 

Activity: Renovation of United Nations headquarters: Disassembly of 
temporary conference building; 
Start date: Late 2013; 
Completion date: Late 2013. 

Source: UN. 

[A] Depends on lease negotiation. 

[B] If authorized as early work. 

[C] Depends on completion of temporary conference building. 

[D] Depends on completion of preparation of leased office space. 

[End of table] 

In January 2007, the UN assessed each member state, on the basis of 
each member state's regular budget rate of assessment, the remaining 
cost of the renovation, which totaled about $1.72 billion.[Footnote 7] 
To fund the CMP, the General Assembly resolved that each member state 
has the option of making either a onetime payment in 2007 or equal 
multiyear payments over 5 years from 2007 through 2011.[Footnote 8] In 
December 2006, the General Assembly approved the scale of assessments 
for the regular budget for all member states for 2007 through 2009, and 
the United States' assessment remained at 22 percent. According to a 
State official, the United States plans to exercise the option to pay 
its assessment of $377.7 million in five payments of $75.5 million per 
year (see table 2). 

The General Assembly also approved a $45 million working capital 
reserve to cover temporary cash flow deficits. Accordingly, each member 
state is expected to make advances to the working capital reserve based 
on its regular budget rate of assessment. The United States has been 
assessed $9.9 million (22 percent) for its share of the working capital 
reserve.[Footnote 9] The President's fiscal year 2008 budget request 
includes $85 million to pay the U.S. CMP and working capital reserve 
assessments.[Footnote 10] 

Table 3: Annual Assessments to the United States Related to the CMP: 

Dollars in millions: 

U.S. assessment: CMP; 
2007: $75.5; 
2008: $75.5; 
2009: $75.5; 
2010: $75.5; 
2011: $75.5; 
Total: $377.7. 

U.S. assessment: Working capital reserve; 
2007: $9.9; 
2008: [Empty]; 
2009: [Empty]; 
2010: [Empty]; 
2011: [Empty]; 
Total: $9.9. 

Total; 
2007: $85.4; 
2008: $75.5; 
2009: $75.5; 
2010: $75.5; 
2011: $75.5; 
Total: $387.6. 

Source: UN. 

Note: Numbers may not add to total because of rounding. 

[End of table] 

Payments for the single or first multiyear assessment and working 
capital reserve are due 120 days from the first week in January, or 
around May 1, 2007. With the mix of single and multiyear assessments, 
the UN may not have the financial resources by May 1, 2007, to 
demonstrate that it has the full capability to fund the project. As a 
result, the General Assembly has approved the establishment of a letter 
of credit for this purpose.[Footnote 11] 

Agency Comments: 

We provided a draft of this report to the Department of State and the 
United Nations for their review and comment. Both State and the UN 
provided oral comments stating that they agreed with the information as 
presented in the report. Both also provided technical suggestions and 
clarifications, which have been incorporated into the draft as 
appropriate. 

As agreed with your office, we are making copies of this report to 
available to interested members of Congress, the Secretary of State, 
and the U.S. Permanent Representative to the United Nations. We will 
also make copies available to others on request. In addition, the 
report will be available at no charge on GAO's Web site at [Hyperlink, 
http://www.gao.gov]. 

If you or your staff have any questions about this report, please 
contact Terrell Dorn at (202) 512-6923 or dornt@gao.gov or Thomas 
Melito at (202) 512-9601 or melitot@gao.gov. Contact points for our 
Offices of Congressional Relations and Public Affairs may be found on 
the last page of this report. GAO staff who made major contributions to 
this report are Phyllis Anderson, Maria Edelstein, and Bruce Kutnick. 

Sincerely yours, 

Signed by: 

Terrell Dorn: 
Director, Physical Infrastructure Issues: 

Signed by: 

Thomas Melito: 
Director, International Affairs and Trade: 

(545052): 

FOOTNOTES 

[1] GAO, United Nations: Planning for Headquarters Renovation Is 
Reasonable: United States Needs to Decide whether to Support Work, GAO- 
01-788 (Washington, D.C.: June 15, 2001); United Nations: Early 
Renovation Planning Reasonable, but Additional Management Controls and 
Oversight Will Be Needed, GAO-03-566 (Washington, D.C.: May 30, 2003); 
United Nations: Weaknesses in Internal Oversight and Procurement Could 
Affect the Effective Implementation of the Planned Renovation, GAO-06- 
877T (Washington, D.C.: June 20, 2006); and United Nations: Renovation 
Planning Follows Industry Practices, but Procurement and Oversight 
Could Present Challenges, GAO-07-31 (Washington, D.C.: Nov. 16, 2006). 

[2] The Secretary-General reported the estimated total project cost for 
the CMP to be $1,876.7 million. For this report, we have rounded the 
estimate to $1.88 billion. 

[3] United Nations Secretary-General, Third Annual Progress Report on 
the Implementation of the Capital Master Plan, A/60/550 (New York, 
2005), and Fourth Annual Progress Report on the Implementation of the 
Capital Master Plan, A/61/549 (New York, 2006). 

[4] United Nations General Assembly, Resolution Adopted by the General 
Assembly, A/RES/61/251 (New York, Dec. 22, 2006). 

[5] GAO-07-31. 

[6] Value engineering is the process of identifying opportunities to 
reduce costs while ensuring the quality, reliability, and performance 
of the project. 

[7] In 2000, the General Assembly appropriated $8 million for the CMP, 
which was funded through an allotment from the regular UN budget. In 
2003 to 2006, the General Assembly appropriated another $152 million 
for the CMP, which was funded through cash assessments on member 
states. The remaining cost of the CMP is $1.716 billion. For this 
report, we round this to $1.72 billion. 

[8] The General Assembly also decided that in the unlikely event of 
cost escalations beyond the approved budget of $1.8767 billion, all 
member states will be subject to further assessment to meet the revised 
financial requirements approved by the General Assembly. 

[9] According to the Secretary-General's fourth annual report on the 
CMP, the working capital reserve would be phased out at the end of 
construction and the related contributions credited back to member 
states. 

[10] The UN resolution also provides that member states that pay their 
assessments late and cause the project to experience cash flow 
shortfalls are subject to charges of interest to cover short-term 
borrowing expenses incurred by the UN to cover the shortage. Under U.S. 
law, none of the funds appropriated to the Department of State are 
available to the UN to pay the U.S. share of interest costs arising 
from external borrowings by the United Nations. However, the 
President's fiscal year 2008 budget includes a provision that requests 
Congress to exempt the CMP from U.S. law that prohibits the United 
States from paying such interest charges to the UN. 

[11] The total cost of the fee for the letter of credit could range 
between $3 million and $21 million. The letter of credit facility would 
be for the total amount of construction less paid assessments and the 
working capital reserve. The fee for this letter of credit has not yet 
been determined, but member states will be assessed their pro rata 
shares.