I have the honor to deliver this statement on behalf of the G77 and China.

The Group of 77 and China welcomes this interactive dialogue and wishes to reiterate its general support to the UN80 initiative and its overarching objective of achieving "a paradigm shift" in how the UN system organizes its work in order to deliver greater impact on the ground.

With regard to the proposal to merge UNDP and UNOPS, the Group of 77 and China takes note of the "Terms of Reference for an Independent assessment of a potential merger between UNDP and UNOPS", jointly developed by UNDP and UNOPS in line with the mandate set out in Executive Board decision 2026/16, 'Engagement with the UN80 initiative', adopted at its annual session last June. The Group values the Terms of Reference's explicit recognition of the importance of ensuring geographic diversity in the composition of the assessment team, should Member States decide to endorse the Terms of Reference and proceed with the independent assessment. However, the role of Member States, particularly programme countries, could be more explicitly reflected in the Terms of Reference and, most importantly, in the conduct of the assessment. Regular, inclusive and representative consultations with Member States would help ensure that the process is sufficiently transparent and that the findings and recommendations of the final assessment enjoy broad-based legitimacy.

Mr. Chair,

At a time of growing financial constraints and increasing development needs, and taking into account the numerous questions and concerns raised by Member States across all regional groups regarding the proposed mergers, the Group of 77 and China believes that the necessary conditions are not in place to approve structural mergers that would entail a prolonged process of institutional restructuring.

Therefore, the Group of 77 and China is of the view that Member States decision-making processes on structural merger options that involve significant legal, operational, financial and delivery risks, as well as a direct impact at the operational level for programme countries, should not be rushed during the current year. Instead, attention should be directed towards country-level delivery, including to accelerate progress in the implementation of national development priorities and the implementation of the SDGs. Therefore, the Group welcomes the provision in the proposed timeline of the Terms of Reference that the final report "will not be available before the 2027 Annual Session", as well as the commitment to provide the Executive Board with regular progress reports.

The Group considers that the Board should seek to agree on a pragmatic, concise and consensual UN80 decision focused on advancing non-structural alternatives to the proposed mergers through enhanced coordination. These could include options identified in the joint UNDP-UNOPS report, such as combining selected operational functions to reduce administrative duplication and improve efficiency, as well as exploring potential joint ventures. Such arrangements could serve as an initial phase or as pilot initiatives, enabling Member States to assess their impact and potential efficiency gains before considering whether more structural measures may be warranted in the future. In this regard, the proposed Terms of Reference for the independent assessment, if endorsed, adequately provide for the independent assessment to consider a range of possible merger modalities, as well as alternatives to a merger.

Mr. Chair,

To conclude, let me reassure you that the Group of 77 and China is aligned with the vision and ambition of the UN80 initiative, and looks forward to working with all Member States to contribute to reforms that improve efficiency and coordination, while strengthening support to programme countries.

Thank you.