VZCZCXYZ0009
RR RUEHWEB

DE RUCNDT #0647 2191956
ZNR UUUUU ZZH
R 071956Z AUG 07
FM USMISSION USUN NEW YORK
TO SECSTATE WASHDC 2413

UNCLAS USUN NEW YORK 000647 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC KUNR UNGA
SUBJECT: USUN MEETS WITH NEW CMP EXECUTIVE DIRECTOR 
 
REF: USUN 00584 
 
On Thursday, August 2, 2007, USUN Ambassador Mark Wallace, 
Management and Reform section counsellor Bruce Rashkow and 
adviser LeRoy Potts met for the first time with incoming 
Assistant Secretary General Michael Adlerstein, to discuss 
the Capital Master Plan. Adlerstein who also holds the title 
of CMP Executive Director sat down with Wallace, Rashkow, and 
Potts and gave his perspective on where the CMP project stood 
in light of the recent GAO and Board of Auditor reports that 
suggest the CMP is already over budget by as much as $148 
million. In addition, Adlerstein discussed the significance 
of naming Skanska as CMP Construction Manager and the 
possibility of keeping the $1.9 billion renovation project 
within budget and on time. 
 
Adlerstein had been on the job 3 days when he met with the 
USUN management and reform officers. He is well aware that 
his "honeymoon" period would be short lived given the 
complexity and cost of the CMP project, the various federal 
and local constituencies with a vested interest in the 
success of the project, and recent calls by Secretary General 
Ban Ki Moon and others for the renovation to achieve LEED 
certification as a "green" building. 
 
Adlerstein suspects that there is some "fat" in the overall 
budget to incorporate both security and green initiatives 
but he will have a better sense once Skanska, the new 
construction manager has had a chance to review the project. 
He believes Skanska will be able to report to the CMP office 
in 3 months time with (1) a realistic estimate of the full 
cost of the project and (2) where savings can be realized to 
bring the project within the GA approved budget. 
 
Although he noted a "pause" in the progress of the CMP, 
Adlerstein also acknowledged that important aspects of the 
project continued to move ahead such as the search for leased 
swing space and design elements for the temporary General 
Assembly building. He envisions the temporary General 
Assembly building can be completed within a year. Under this 
scenario the 64th General Assembly could have use of the 
temporary facility in 2009. 
 
Ambassador Wallace emphasized to Adlerstein the importance of 
keeping the CMP within the original scope and budget as it 
was sold to the USG. Adlerstein, with his extensive 
background in project management committed himself to being 
fiscally responsible and offered to tweak the budget wherever 
necessary in order to comply with the GA approved budget. In 
addition, he also committed to making frequent briefings to 
the UNs Fifth Committee and other delegates on CMP progress. 
 
In reftel, USUN reported three letters having been sent from 
Ambassador Wallace to Under-Secretary General for Management 
Alicia Barcena requesting information on the status of the 
CMP. Last week in a July 30 letter to Ambassador Wallace, 
Barcena explained that although the cost to complete the CMP 
is "technically" over budget, no unforeseen costs have been 
expended to date and initial expenditure on design, 
preparation of construction documents, and support services 
by staff and consultants are within budget 
 
Comment: Michael Adlerstein in his first meeting with USUN 
staff as CMP executive director conveyed confidence in his 
resolve to bring the CMP project within budget. He 
understands US concern with the CMP's slow start and the 
related cost implications for every month of delay. Upcoming 
GAO and IO/MPR visits to meet with Adlerstein will also serve 
to reinforce USG concern regarding the cost of the project. 
In addition to budgetary concerns, Adlerstein also faces the 
problem of resolving the UN's dispute with the city over fire 
and safety code violations. Some 800 plus fire code 
violations remain and New York City officials have threatened 
in the past to take some action against the UN if it does not 
move quickly enough to address this problem. Adlerstein may 
call on USUN to act as an intermediary with the  city of New 
York. 
 
KHALILZAD