STATEMENT OF THE G-77 AND CHINA FOR THE IAEA BOARD OF
GOVERNORS MEETING, PROGRAMME AND BUDGET COMMITTEE, 2-5 MAY 2006, DELIVERED
BY H.E. AMBASSADOR HORACIO BAZOBERRY, PR OF BOLIVIA
Agenda Item 2: The Agency's Accounts for 2005 and the Programme
Evaluation Report for 2005
The Group of 77 and China wishes to thank DDG, Waller, for his
informative introductory statement and the presentation highlighting the
various items for the Programme and Budget Committee Meeting.
The Group would like to commend the Secretariat for the preparation
of document GOV/2006/20 that contains the Agency's Accounts for the Year
2005, and the report thereon by the External Auditor.
The Group is pleased to note that the External Auditor placed an
unqualified opinion on the Agency's financial statements for the year
2005. While appreciating the work of the External Auditor and his staff,
the Group notes that he has made certain observations and recommendations
on financial and administrative matters for the improvement of the
Agency's financial management and control.
The Group notes with satisfaction that in deference to the
recommendation made last year by the External Auditor, the Agency has
stepped up efforts to accelerate project planning and the implementation
of underutilized resources from the Nuclear Security Fund (NSF) that
suffered due to donor conditions. In this regard, we encourage the Agency
to carry out further discussions on donor conditions to gain more
flexibility and to improve the implementation of the projects.
The Group appreciates the Agency's efforts to optimize the
organizational structures of the procurement function, and to establish a
strategic approach with procurement planning.
The Group agrees with the recommendation that efforts be made by the
Member States to complete the ratification process of the amendment of the
Article XIV of the statute to enable the Secretariat to implement biennium
The Group also notes the recommendation of the External Auditor about
the adoption of the International Public Sector Accounting Standards
(IPSAS). The Group notes the External Auditor's opinion that this step
will improve accounting framework and further enhance accountability and
transparency. The Group looks forward to being informed about the full
implications of the implementation of IPSAS.
The Group has viewed with great interest, the observations of the
External Auditor on Technical Cooperation activities. The Group shares the
view that the Project Progress Reports are important for management and
monitoring of TC projects, and their submission in a comprehensive and
timely manner is the responsibility of the recipient national
organization. The Group is of the view that the national TC Liaison
Officers and the Agency should enhance their coordination to this end.
The Group wishes however to stress that the related recommendation,
as contained in Paragraphs 29 and 177 of the External auditor's report,
should not be implemented until due considerations is given to its
implications especially with regards to the ownership of the national TC
The Group takes note of the External Auditor's observation that the
recipient MS relied on the Agency's assistance even after the closing of
project, or that the TC projects were discontinued for lack of national
funds, but is of the view that these statements need detailed study by the
Agency, bearing in mind that these conclusions were drawn based on visits
to only three Member States. Technically, new projects seemingly quite
similar to the ones previously undertaken are possible in view of
multidisciplinary nature of the nuclear technology. Similarly, it may
appear in some cases that further work on projects was stopped, while it
may have been a component of, or having application in a bigger project.
While it is generally understood that the Agency is following Central
Criterion, and that all projects are formulated in the light of defined
national priorities, the observation of the Auditor, nevertheless, merits
consideration by the Agency.
The Group wishes also to underline that assessment of TC activities
cannot be based only on restrictive administrative and financial
considerations. A broader approach including also the impact on technology
transfer is needed. The Group looks forward to further clarifications and
discussions when a more detailed report will be presented.
The Group notes that, as pointed out in the previous report of the
Auditor, the Agency is making efforts to avoid donor's conditions on
voluntary contributions. The availability of funds without extensive donor
conditions is necessary to ensure sound project delivery. The Group lends
its voice to the recommendation of the Auditor to the donors to accept the
Model Agreement, which will minimize imposition of onerous conditions
attached to the donations.
The Group noted also the findings of the External Auditor on the
Agency's IT organization, and in this regard, encourages the Secretariat
to address the shortcomings identified. In the same vein, the Group
emphasizes the importance of maintaining and enhancing information
confidentiality and security of the Agency, and is of the view that any
projected reform in the IT organization should not compromise those
aspects. The Group looks forward to the External Auditor's next report in
which he will further investigate this issue and provide more detailed
While the follow-up to audit recommendations from the report of 2004
is generally satisfactory, the Group expresses the expectation that
remaining recommendations can be implemented in an adequate and timely
With these comments, the Group of 77 and China takes note of the
Agency's Accounts and of the External Auditors Report as contained in the
Let me now turn to the 2005 Programme Evaluation Report.
The Group of 77 and China thanks the Director General for his 2005
Programme Evaluation Report, contained in Document GOV/INF/2006/6, as well
as the evaluation panels experts and the Office of Internal Oversight
Services for the work carried out regarding the assessment of the regular
programme and of the Agency-wide evaluation in 2005.
In this regard, the Group notes with satisfaction the exhaustive and
pertinent analysis and recommendations made to enhance further the
Agency's partnerships and the activities undertaken in the following
- Programme H. Protection of the Marine and Terrestrial Environment,
- Programme F: Human Health.
The Group also notes that the evaluations of Major Programme 3 and
the Agency's coordination of cross-cutting activities which were initiated
in 2005, have not been completed at the time of the elaboration of this
report and that they will therefore be included in 2006 Programme
As far as the evaluation of Programme H, Protection of the Marine and
Terrestrial Environment is concerned, the Group notes that the assessment
covered the results achieved since 2001 and is pleased to register that
the Agency's programme has been implemented effectively and produced
valuable impact on Member States.
The Group considers highly important the recommendations relating to:
- The strengthening of the role and authority of the Internal
Environmental Liaison Group (ENALG) in order to foster real coordination
and collaboration between Departments of the Agency involved in
- The exploration of additional mechanisms to help developing Member
States, who may have difficulties in accessing the diversity of scientific
publications in open literature, to obtain information with regard to
protection and management of the marine and terrestrial environments,
- The establishment of a mechanism for the periodic updating and
expansion of GLOMARD/MARIS system, used in the verification of models and
assessment of environmental impacts,
- Increasing the number of participants in Analytical Laboratories
Monitoring Environmental Activity (ALMEIRA), in order to reinforce the
prevention of risks of accidental or intentional release of radioactivity.
In the same vein, the Group considers useful the recommendation
relating to the support of the training programme on preventive
maintenance and repair of nuclear equipment.
Regarding the recommendation for setting up an adequate pricing and
cost recovery policy for the Agency's reference materials, the Group is of
the view that any change in this regard should take into consideration the
financial capacities of developing counties and should be made in
consultation with concerned Member States
Concerning the Evaluation of the Agency's Human Health Programme, the
G.77 and China is pleased to note that a large number of relevant
activities have been undertaken, including technology transfer and
With respect to the proposal made for the establishment of a specific
medium term strategy in human health with assessments and objectives and
outcomes clearly defined, which should contain provision for the needs of
countries of all economic levels, the Group would like to make the
- Any effort to create a better synergy between different departments
of the Agency and between the Agency and member States is appreciated,
- However, the strategy mentioned above should be in line with the
Medium Term Strategy of the Agency for 2006-2011, and should be in
accordance with the Country Programme Framework, which identifies and sets
up the needs and priorities of each country,
- The Group considers that the IAEA should continue assisting
Developing countries in the area of Human Health taking into consideration
their limited financial resources, growing needs and the lack of medical
equipments and technologies,
- Finally, the Group reiterates its support to the Programme of
Action for Cancer Therapy and encourages the Agency to continue its
efforts in collaboration with other international organisations with a
view to mobilising financial resources for its implementation.
With regard to the Evaluation of IAEA Partnerships, the Group notes
with satisfaction the progress achieved in the previous years and supports
the recommendations proposed by the Office of the Internal Oversight
Services and in particular those regarding the establishment of a central
repository for partnership agreements and of a mechanism for reporting
progress in meeting targets and commitments of the Agency, as well the
setting up of a mechanism for handover and transfer of partnership
managerial responsibilities within the Agency.
The Group agrees that the Secretariat should ensure that the
objectives of its partnership agreement are SMART and welcomes the
recommendation that the Secretariat should ensure that Member States are
informed on the establishment of partnerships and on their
Finally, with regard to the status of recommendations from Programme
evaluations completed during the period 2001-2004, the Group commends the
Secretariat for the progress achieved in implementing the recommendations
concerning the years 2001, 2002 and 2003, and encourages it to continue
its efforts to implement those relating to the year 2004.
Thank you Mr. Chairman,
Agenda Item3: the Agency's Draft Budget update for 2007
The Group of 77 and China would like to thank the Secretariat for preparing
the Agency's Draft Budget update for 2007 as contained in GOV/2006/1 and presented
by DDG David Waller.
The Group notes that, as underlined in the document, the budget update does
not contain any programmatic changes and that, however, "operational changes"
can be expected. In this regard, the group encourages the Secretariat to do
its utmost to limit financial implications of such changes to the minimum.
As regards the new issues with possible financial resources implications, the
Group wishes to renew its appreciation that the Agency's share of the monetary
award of the Nobel Peace Prize will be used for human resources development
in developing countries in cancer management and nutrition.
Regarding the cost of the meetings of the Advisory Committee on Safeguards and
Verification within the framework of the IAEA statute, the Group, bearing in
mind the Programme and budget Package of 2003, stresses the importance of reaching
an agreement of funding such costs taking into account the additional financial
burdens it may bringing about for developing countries in particular.
Regarding the price adjustment, the Group notes that the Secretariat applied
an average rate of 2.9% and that staff costs are the principal element that
contribute to the adjustments.
Finally, the Group wishes to draw the attention to the complexity of the methodology
for determining the price rate.
With these comments the Group agrees to the submission by the Board to the General
conference of the Agency's budget estimate for 2007 and the related draft resolutions.
And now Mr. Chairman, I would like to turn to the issue of Financing of the
Programme of Action on Cancer Therapy (PACT)
The Group of 77 and China would like to thanks the DG for all actions taken
to strengthen PACT, as well as Member States that have been making contributions
to this programme and the PACT Management Office for the progress achieved so
far to start implementing in a systematic way this important programme with
the scarce resources available up to now and to establish a network of international
and regional organizations and agencies committed to the same cause. The Group
also encourages Member States to enhance their donations for a better and more
efficient implementation of the programme.
The Group has been fully committed to the development and implementation of
the Programme of Action on Cancer Therapy (PACT) since its inception and approval
by the Board of Governors in 2004 and as such proposed the resolutions approved
by consensus by the 48th and 49th General Conferences, which highlight that
PACT is one of the priorities of the Agency.
The Group highlights that PACT embodies in a clear way the peaceful use of atomic
energy for civilian and humanitarian purposes. If this Programme is implemented
in a timely manner to enable Member States to developed their own capacities
to fight cancer in a comprehensive way, the Group has no doubt that it will
have a decisive impact on the health and development of all regions, which in
turn will help raise the international public profile of the Agency.
Bearing in mind the unity expressed by the Board when PACT was approved and
when we allocated the Nobel Price financial component to this Programme it will
be a great loss if the Agency had to suspend this programme.
Considering that in the past the Board of Governors has authorized the use of
regular budget surpluses to finance various initiatives in the field of safeguards
and the security of the VIC premises, the Group supports the proposal to use
1.5 million of the 2004 cash surplus to partly finance PACT in 2006 and
2007, especially considering that payments of arrears have increased the level
of such surplus.
To this effect, the G-77 and China considers that this meeting of the Board
should approve the proposed draft resolution as contained in document GOV/2006/25/Mod.I
and authorises the exceptional waving of regulation 7.03 b) of the Financial
Thank you Mr. Chairman.
Agenda Item 4: Planning for the Programme and Budget Proposals for the
2008-2009 and 2010-2011 biennia
The Group of 77 and China would like to thank the Secretariat for the
preparation of the Planning for the 2008-2009 and 2010-2011 Programme and
Budget Proposals, as contained in document GOV/2006/21 and the Deputy
Director-General for Management for the presentation of this agenda item.
The Group underlines the great importance of the Planning, since it
constitutes part of the process to develop the details of the Agency's
Programme and Budget for the 2008-2009 and 2010-2011 cycles. The Group
understands that the Planning represents a very preliminary stage of this
process and looks forward to engaging in further discussions with a view
to arriving at a final Programme and Budget proposal that appropriately
reflects the needs and interests of Member States. In this context, the
Group recalls that "an appropriate balance shall be maintained
between promotional and other statutory activities of the Agency, as well
as across all major programmes", as contained in the Package
agreement of 2003 (document GOV/2003/48). The Group further recalls other
basic principles and positions emphasized during the extensive discussions
that took place in 2003 and led to the formulation of the Package.
The Group shall carefully examine the programmatic and budgetary
proposals that are being made. The Group is particularly interested in the
financial implications of the proposals, since the document mentions that
budgetary increases are foreseen. In this connection, the Group would like
to recall the need to take into consideration the financial constraints
faced by many developing countries. The Group suggests that the chart
containing resources estimates for 2008-2011 include a "grand total"
for the year 2007, so that Member States can have a better picture of the
total increases that are being proposed. It might also be useful to
compare the budget being proposed for the next two biennia to the budget
for 2003, when the last comprehensive discussions on budgetary issues
occurred. Furthermore, the Group deems it important to discuss further the
implications of having a separate category for "essential elements".
In the same line, the Group stresses the relevance of discussing the new
accounting standards, the recognition of after-service liabilities, common
staff costs, the Agency-wide Information System for Programme Support
(AIPS) and support costs related to extrabudgetary contributions, as well
as the implications of all these issues.
Allow me now to make preliminary comments about specific parts of the
In relation to paragraph 10, the Group believes that the other
reports produced by the Secretariat - and not only the Safeguards
Implementation Reports - should be included in the list of reviews to be
used in the formulation of the detailed 2008-2009 and 2010-2011 programmes
and budgets, so as to better reflect the needs and the situation of all
areas of activities of the Agency. The Group is interested in learning
more about the changes mentioned in paragraph 17, related to the
presentation of the management and administrative functions, and their
implications. The Group is pleased to note that efficiencies and
productivity improvements will continue to be pursued by the Secretariat
and has the expectation that this will translate into financial savings.
As regards Major Programme 1, G77 and China notes the observations
contained in paragraphs 34 and 35 on the continuing rise in expectations
for nuclear power and energy security concerns, and on the global
long-term trend in nuclear power development towards increased
sustainability. The Group is of the view that some elements in the two
paragraphs require further clarification and discussions.
The Group notes with appreciation that Major Programme 2 will
continue to focus on and give priority to the topics identified by the
World Summit on Sustainable Development and the relevant areas of the
Millenium Development Goals. The Group also notes that important areas of
interest for developing countries will continue to be contemplated, such
as food and agriculture, human health, water resources, the production of
radioisotopes and the use of nuclear and radiation technologies. The Group
is of the view that further discussion is needed on the proposal to
decrease the overall number of projects in the food and agriculture
programme, as mentioned in paragraph 53.
In the area of safety, the Group welcomes the enhanced perception of
review services and the new initiatives related to the radiological
protection of patients, including support to regional and sub-regional
institutions as collaborative training and reference centres.
As for paragraph 81 of the Report, the Group of 77 and China notes
the inclusion of the Code of Conduct on the Safety and Security of
Radioactive Sources as part of a "set of international instruments
that contain obligations for Member States". In this connection, the
Group once again recalls that the code of Conduct is not a legally binding
instrument and should neither hamper the wide use of radioactive sources
in medicine, agriculture, industry and education, especially in developing
countries, nor be used to deny the peaceful uses of atomic energy or the
export of these sources for use in developing Member States. The Group
requests the Secretariat to change the corresponding parts of the Report
accordingly. Furthermore, since this issue has been repeatedly mentioned
in recent years, the Group suggests that the Secretariat use uniform
language when referring to the Code of Conduct, utilizing the expression "not
a legally binding instrument", as mentioned in resolution
In relation to paragraph 82 of the Report, where it is said that "the
implementation of the Nuclear Security Plan 2006-2009 is foreseen to be
primarily financed through voluntary contributions to the Nuclear Security
Fund", the Group recalls that, as reflected in the Chairman's
conclusion on item 4 of the September 2005 session of the Board of
Governors, when the Plan was approved, Member States were called upon to "to
contribute on a voluntary basis to the Nuclear Security Fund". The
same understanding is included in resolution GC(49)/RES/10 and should also
be taken into account in the Planning.
The Group welcomes the fact that the Agency plans to intensify its
assistance to Member States to enhance the capacity of personnel tasked
with the implementation of States obligations under their safeguards
obligations, as reflected in Para 92 of the report.
As to paragraph 94 of the report, about the revised Small Quantities
Protocol (SQP), G 77 and China wishes to recall document GOV/2005/33,
which highlights that "since nuclear material is not expected to
exist in large quantities in most SQP States, and very few facilities are
likely to exist in such States, the Secretariat does not foresee regular
verification activities in such States and therefore does not foresee any
measurable increase in safeguards costs to the Agency should SQPs be
rescinded or revised". Furthermore, in the briefing by the Director
of the Division of Concepts and Planning of the Department of Safeguards,
which took place in September 2005, it was affirmed that the revised SQPs
would have "no effect on the overall safeguards budget". In this
connection, the Group requests that the Secretariat reformulate paragraph
With reference to paragraphs 95 and 96 of document GOV/2006/21,
without prejudice to the recommendations of the Advisory Committee on
Safeguards and Verification within the Framework of the IAEA Statute, the
Group believes that it is best left to the Board, after having received
the recommendations of the Advisory Committee, to decide on whether it is
appropriate at this time for the Agency to acquire expensive equipment in
support of verification activities.
The Group notes with satisfaction that paragraph 106 mentions the
fact that "the implementation of integrated safeguards has resulted
in savings of around 10% inspection effort in the field". The Group
would appreciate it if the Secretariat could provide a cost analysis of
the implementation of integrated safeguards and how the estimated
additional savings will impact the overall budget for safeguards. On the
other hand, the Group seeks additional information on paragraph 109, where
it reads "safeguards activities of an unpredictable nature may
require additional funding between Euro 15 and Euro 18 million per annum"
and on how this would be financed.
As to Major Programme 6, Management of Technical Cooperation for
Development, G77 and China wishes to reiterate the great importance that
it attaches to the Agency's technical cooperation activities, as they are
the main statutory vehicle for transferring nuclear technology to
developing countries for their socio-economic development, in keeping with
the IAEA's Statute. Over the years, the Group has actively participated in
the discussions and negotiations regarding the TC Programme. By doing so,
our membership has sought to ensure that the IAEA technical cooperation
activities are strong, efficient and effective in meeting national needs
in a sustainable manner and that they continue to keep up with the growing
needs of developing countries in key areas for their sustainable
development, such as the peaceful applications of nuclear technology in
human health, power generation, industry, water management and
In this connection, and bearing in mind the growing number of Member
States and their needs, the Group considers that resources for TC
management should be sufficient to avoid any workload that might hamper
the quality of programme formulation and delivery, and looks forward to
engaging in discussions on the TC components of the programmes and budget
proposals for the next two biennia.
Regarding the paragraph 132, The Group calls on the TC Department to
provide Permanent Missions in Vienna a higher access to the PCMF web site
enabling them to have a better involvement in the web based platform for
As regards the communication strategy, mentioned in Para 133, the
Group considers that further communication efforts are needed on the role
of TC. This should include more space for success stories in the main page
of the website of the Agency and an enhanced presence of TC in the
Agency's Bulletin. It should be noted, in this regard, that prolonged
debates in the Board of Governors on other issues tend to overshadow the
fundamental role of peaceful applications of nuclear energy.
With these comments, the Group of 77 and China takes note of document
Thank you Mr. Chairman.