1. On behalf of the Group of 77 and China, I would like to thank the UNDP for the report contained in document DP/2009/3 on cost classification in UNDP. We note that the document contains an initial conceptual framework and a "broad road map" to initiate more indebt discussions on the proposed re-classification.

2. We look forward to these follow-up discussions after this week's Board meeting as we are still studying the report, bearing in mind, in particular, the implications it may have for programme arrangements and the programme budget.

3. We therefore see further consultations on this issue as necessary, and we would also welcome a briefing of the Group on this issue at which time we will share more detailed views and questions of the Group on the report and the proposals/road map for cost classification.

4. We are particularly interested in further discussing the proposed re-classification of development costs into three sub-categories - namely programmes; programme effectiveness activities; united nations development coordination activities. This proposal bear implications for allocation of costs to development programmes, so the G77 and China would welcome an opportunity to further discuss this in more detail, in addition to the proposed conceptual framework and the issue of cost-recovery, among others, in an informal setting.

5. In the recent past we have found such briefings extremely useful and the organization has been readily available to further engage programme countries in this manner, we are thankful for this and look forward to an opportunity to continue such engagement on this specific issue.

Thank you Mr. President.