PC-VIII/A/WP.7

Preparatory Commission for

the Organisation for the Prohibition

of Chemical Weapons

PC-VIII/A/WP.7

29 August 1994

Original: ENGLISH

Eighth Session

(26 - 30 September 1994)

EXPERT GROUP

PROGRAMME OF WORK AND BUDGET

SEVENTH REPORT

EXPERT GROUP ON PROGRAMME OF WORK AND BUDGET

SEVENTH REPORT

1. In accordance with the Illustrative Weekly Schedule of Meetings attached to the Report of the Seventh Session of the Commission (PC-VII/8), the Expert Group on Programme of Work and Budget met in The Hague from 15-25 August 1994 to consider:

(a) the Report of the Finance Group;

(b) the draft Programme of Work and Budget of the Commission for 1995;

(d) the preliminary estimates of the first OPCW Budget;

(e) the remaining proposals for post adjustment presented by the Executive Secretary in documents (h) and (m) of paragraph 3 of PC-VII/A/WP.4;

(f) different alternatives for financing the post of the P-3 Building Officer recommended by the Committee on Relations with the Host Country; and

(g) The Executive Secretary's assessment of the needs of the Conference Services Branch for the First Session of the Conference of the States Parties and any associated meetings of the Executive Council.

2. Ambassador Jorge Morales Pedraza of Cuba continued as the Chairman of the Expert Group.

3. The list of documents distributed during the meeting is in the Attachment to this Report.

4. Comments on the 1994 Programme of Work and Budget of the Commission.

4.1 The Group noted the Executive Secretary's observation on the cash flow situation and agreed to draw the Commission's attention to the collection rate of 76 per cent for 1994 assessed contributions and to the risk that the Secretariat might not be able to implement all of the 1994 approved activities unless Member States pay their contributions in full. The Group noted with concern that 69 Member States had not yet paid in full their assessment for the 1993 financial year.

4.2 Considering that the Convention will not enter into force in January 1995, the Group endorsed the suggestion of the Executive Secretary that the 9th Session of the Commission scheduled in December 1994 should run from the 5th to the 9th of December 1994.

5. Report of the Finance Group

5.1 The Expert Group took note of the Finance Group Report of the Third Meeting as contained in document PC-VIII/A/WP.4. In the absence of the Chairman of the Finance Group Dr. Lal of India, Dr. Odernheimer of Germany introduced the Report. Discussions on the Report of the Finance Group focused on the following issues:

(a) the audited financial statements of the Provident Fund for the year ended on 31st December 1993;

(b) the audited financial statements for the year ended on 31st December 1993; including the Report of the External Auditor;

(d) the Commission's investment policies and procedures;

(e) funding and budgetary arrangements for the procurement of certain inspection and laboratory equipment; and

(f) and the applicability to the Commission of UN best practices in the area of Financial Management, as recommended by bodies such as the Joint Inspection Unit.

5.2 The Expert Group took note of the decision of the Finance Group to return to the matter of UN best practices in the area of financial management during its next meeting in October 1994.

5.3 The Group endorsed the suggestions contained in paragraph 4.1 of the Report of the Finance Group concerning the audited financial statements of the Provident Fund and the principle that the External Auditor of the Commission should also be the External Auditor of the Provident Fund as contained in paragraph 4.3.2. of the same Report. .

5.4 The Group decided to consider the recommendations of the Finance Group relating to the 1995 Draft Budget during the examination of the item on its agenda.

5.5 The Expert Group greatly appreciated the work of the Finance Group and recommended that the Commission impress upon Member States the importance of sending suitably qualified experts with a view to widening participation in the Finance Group's meetings.

6. The Draft Programme of Work and Budget of the Commission for 1995.

6.1 Part I and Part II of the proposals on the 1995 Programme of Work and Budget of the Commission were reviewed separately. In each case, there was a detailed discussion of the programmes identified in PC-VIII/A/WP.1 (1,2).

6.2 The Group carefully considered the budgetary and funding implications of the yet unspent appropriation for inspection and laboratory equipment in the 1994 Budget and looked for practical solutions to the problem. The Group's recommendation in this matter (paragraph 11.2 (j)) is an exceptional departure from the Commission's normal budgetary procedures as set out in Financial Regulation 3.1.

6.3 Whilst considering security related matters, the Group emphasised the importance of strengthening physical security on the premises of the Netherlands Congress Centre and noted the Executive Secretary's intention to raise this problem again with the appropriate Host Country authorities.

6.4 The Group suggested to the Expert Group on Training to review the training programme for inspectors/inspection assistant candidates with a view to increasing its cost effectiveness, in particular with a view to reducing the proportion of funds within the overall allocation devoted to travel.

6.5 The Secretariat has initially requested funding for a number of work stations and PC's. The number of each was initially agreed to in the Expert Group on Data Systems, but subsequently contested. Further discussion within the appropriate Expert Group is required on this point. The Group took note about this situation and agreed to discuss the recommendation of the Expert Group on Data Systems on this issue at its next meeting.

The spending of funds allocated in the budget for the IS Branch of Dfl. 902,000.00 will require approval of the Commission at its Ninth Session of a recommendation of the Expert Group on the Programme of Work and Budget based on a specific recommendation of the Expert Group on Data Systems.

6.6 In proposing a budget for the IS Branch, the Group recognised that there is also no agreement on the security model to be adopted for the IMS. The Group noted that a decision on this issue could have important implication for the 1995 budget and could require redistribution of funds among budget categories or a supplemental assessment.

The spending of funds allocated in the budget for the IS Branch will require approval of the Commission at its Ninth Session of a recommendation of the Expert Group on the Programme of Work and Budget based on a specific recommendation of the Expert Group on Data Systems.

7. Remaining proposals for staffing adjustment

7.1 The Group reviewed the remaining staffing proposals presented by the Executive Secretary. The outcome of this review was reflected in the personnel appropriations and staffing tables contained in the 1995 Budget document. The Group decided not to consider any further staffing proposals in 1994.

8. Preliminary Estimates for the Commission Budget for 1996.

The Group considered Preliminary Estimates for the Commission Budget for 1996 and suggested that these estimates be reviewed taking into account the approved budget for 1995 to which a provision for inflation would be added where appropriate.

9. Preliminary Estimates for the First 12-Month Budget of the OPCW.

The Group took note of Preliminary Estimates for the First 12-Month Budget of the OPCW and decided to return to this issue at its meeting scheduled in the next intersessional period.

10. The needs of the Conference Services Branch.

The Group took note of the Executive Secretary's assessment of the needs of the Conference Services Branch for the First Session of the Conference of the States Parties and any associated meetings of the Executive Council and included provision for the future course of action in the 1995 OPCW Draft Budget (para. 7.4.10).

11. Recommendations

11.1 The Group recommended that Working Group A request the Commission to endorse the principles:

(a) that the External Auditor of the Provident Fund address his report directly to the Commission;

(b) that the Fund's audited financial statements be transmitted to the Annual General Meeting of Participants together with the External Auditor's report and the Commission's observations therein; and

(c) that the Charter, together with the Administrative Rules of the Fund, be submitted to the Commission for its consideration and approval.

11.2 The Group also recommended that Working Group A request the Commission to:

(a) ask the Executive Secretary to take the necessary steps to ensure that these principles are followed;

(b) request the External Auditor to review and include in his report on the 1994 audited financial statements, the extent to which the recommendations contained in PC-VII/A/WP.4 and endorsed in PC-VII/8 on the identification of a set of financial statements have been implemented.

(c) ask the Executive Secretary to seek the Commission's retroactive approval for the excess of expenditure over appropriations on three objects of expenditure in 1993: computer equipment (excess of $60,626); stationery ($193,025), and unallocated services ($17,626). The Group noted that the External Auditor examined the reasons for these over expenditures and was satisfied with the explanations provided by the Secretariat.

(d) request the Secretariat to follow, in so far as they are applicable to the Commission's operations, the detailed accounting procedures as set out in the United Nations Accounting Manual.

(e) ask the Executive Secretary to take appropriate steps to recover overpayments and unsubstantiated expenditures totalling Dfl. 234,653.00. The Group noted that the External Auditor will follow up these cases in his 1994 audit and report any subsequent write-off action authorised by the Executive Secretary.

(f) take note of the intention of the Executive Secretary to make a formal response to the External Auditor's Report and request the Finance Group to review the Executive Secretary's response at its Fourth Meeting in October 1994 and report to the Commission.

(g) limit its Ninth Session scheduled in December 1994 to only one week.

(h) defer any action on the GS salary levels until the report resulting from the UN survey conducted by the International Court of Justice in July 1994, under the guidance of an expert from the UN headquarters in New York, is received and reviewed by the Finance Group.

(i) suspend any further action by the Secretariat concerning the adaptation of the CCG standards since the bodies included in the CCG are essentially European in composition and do not reflect the universal character of the Commission.

(j) adopt the following decision establishing a Special Account for the Procurement of Equipment in accordance with the recommendation of the Finance Group:

"The Commission decides:

(i) to authorise the Executive Secretary to establish under Financial Regulation 6.5 a Special Account for the Procurement of Inspection and Laboratory Equipment with the effective date of commencement of the Special Account being the date of this decision;

(ii) to transfer the appropriation of Dfl. 7,590,500.00 for inspection and laboratory equipment approved in Part I of the 1994 Programme of Work and Budget to this Special Account;

(iii) that this Special Account shall be funded by a transfer of Dfl. 7,590,500.00 from the Commission's 1994 General Fund (which in turn, is financed by assessed contributions in Members States for the 1994 financial year);

(iv) that the transferred appropriation shall be available for obligation from the date of commencement of Special Account until either EIF plus sixty days or 31 December 1995 whichever date is the earlier;

(v) that the Executive Secretary shall report to the Commission on the transactions in this Special Account in accordance with the Financial Regulations and Rules and shall also, as provided for in Financial Regulation 6.6, administer this Special Account in accordance with the Financial Regulations and Rules."

(k) impress upon Member States the importance of sending suitably qualified experts with a view to widening participation in the Finance Group's meetings.

11.3 The Group recognised that the proposed decision to set up a special account in order to carry over inspection and laboratory equipment-related appropriation into 1995 shall not constitute a precedent. It recommended that the Expert Group on Administrative, Financial and Personnel matters be tasked with addressing ways of ensuring that such situations, were they to be repeated, be dealt with in full accordance with financial regulations.

11.4 The Group endorsed the External Auditor's recommendation that the Commission follow, as far as they are applicable, the purchase procedures set out in the United Nations Accounting Manual. Deviations should be explicitly noted by the Executive Secretary and reported to the Commission. The Group recommended that the Commission invite the External Auditor to carry out an examination of the purchase system under Article 12.4 of the Financial Regulations and to report his findings in his report on the 1994 financial statements.

11.5 The Group also endorsed the External Auditor's recommendation that the value of all fixed assets (including the inventory on loan and non-expendable items purchased) be disclosed in the Commission's 1994 financial statements.

11.6 The Group recommended that the Commission's inventory should include all non-expendable items valued (on purchase or acquisition) at Dfl. 3,000 or over. In addition, the inventory should include all other attractive or valuable items costing under Dfl. 3,000.

11.7 The Group took note of the willingness of the Finance Group to assist the Commission in the preparation of material for the Conference of States Parties to consider when deciding upon the OPCW's position as an international organisation, including whether to join the United Nations common system; join the CCG system or remain an independent and unaffiliated organisation. The Group requested Working Group A to recommend to the Commission that the Finance Group be asked to assist by providing advice on the financial implications of each of these options.

11.8 The Group invited the Executive Secretary to prepare a document setting out the Commission's investment policies and procedures for consideration by the Finance Group at its next meeting in October 1994.

11.9 The Group recommended that Working Group A consider requesting that the Finance Group include the following items in its agenda for its Fourth Meeting:

(a) review of the Executive Secretary's response to the External Auditor's Report;

(b) review of the draft Financial Regulations and Rules of the OPCW;

(d) review of UN best practices;

(e) review of GS salary scales; and

(f) review of the investment policies and procedures of the Commission.

11.10 The Group recommended that Working Group A consider an extension of the duration of the Fourth Meeting of the Finance Group by two days from the 10th to the 14th of October 1994.

11.11 The Group requested Working Group A to forward the following recommendations to the Commission for consideration and approval during its Eighth Session:

(a) to adopt the 1995 Programme of Work and Budget contained in the Annex to this Report;

(b) to appropriate, in Dutch Guilders, a total amount of Dfl.56,816,300.00.and authorise the Executive Secretary to:

(i) incur expenditures for Part I of the 1995 Budget in an amount not exceeding Dfl.27,251,000.00;

(ii) incur expenditures for Part II of the Budget in an amount not exceeding Dfl.29,565,300.00;

(c) to decide that the above appropriations shall be financed from contributions by all Member States in accordance with the scales of assessments for 1995 that will be presented by the Executive Secretary at the Eighth Plenary Session of the Commission;

(d) to request Member States to pay their contributions to:

(i) Part I of the 1995 Budget in full within thirty days of the receipt of the communication from the Executive Secretary requesting the contribution; and

(ii) Part II of the Budget in full within thirty days of the receipt of a further communication from the Executive Secretary; which shall not be communicated before the deposit of the sixty-fifth instrument of ratification;

(e) to request the Expert Group, in the preparation of a draft Programme of Work and Budget for the OPCW, to continue informal open-ended consultations;

(f) to request Member States that have not yet paid their 1993 and 1994 assessments in full, to do so as soon as possible;

(g) to request the Executive Secretary to report by the Ninth Session of the Commission on action taken to collect unpaid contributions to the 1993 and 1994 Budgets; and

(h) to request the Chairman of the Commission, in coordination with the Executive Secretary, to seek Host Country funding for the rental of additional premises (Part I - Laboratory and Equipment Store; Part II - Additional Office Space), within the overall maximum funding currently envisioned by the Host Country; to decide that the appropriation of funds for rental of premises in the 1995 budget is to ensure adequate funding for all contingencies and does not represent authorisation to expend these funds and that separate authorisation must be given by the Commission for expenditure of any funds for rental of premises.

Attachment

List of Documents distributed during the meeting of the Expert Group on

Programme of Work and Budget from 15 - 25 August 1994.

(a) Budget and Programme of Work 1995: Volume One

(PC-VIII/A/WP.1 (1), 15 July 1994)

(b) Budget and Programme of Work 1995: Volume Two

(PC-VIII/A/WP.1 (2), 15 July 1994)

(PC-VIII/A/WP.1 Add. 1, 20 July 1994)

(d) Budget and Programme of Work: Volumes One and Two

(Corrigendum, PC-VIII/A/WP.1 (1,2)/Corr. 1 of 2 August 1994)

(e) Finance Group Report of the Third Meeting: 1-5 August 1994

(PC-VIII/A/WP.4 of 5 August 1994)

(f) Preliminary Estimates for the Commission Budget for the Fiscal Year 1996

(Paper 5 of 10 August 1994)

(g) Preliminary Estimates for the first 12-month Budget of the OPCW

(Paper 6 of 10 August 1994)

(h) Note by the Executive Secretary on Proposed Adjustments to Phase I Staffing Requirements - 1994

(PC-VII/2* of 25 May 1994.)

(i) Expert Group on Programme of Work and Budget Meeting 15-26 August 1994: Provisional Agenda

(Paper 1 of 11 August 1994)

(j) Informal Note by the Executive Secretary for the Expert Group on Programme of Work and Budget: Different Alternatives for Financing the post of the P3 Building Officer

(Paper 2 of 11 August 1994)

(k) A Consideration of options for the OPCW Linguistic Policy

(Paper 3(a) of 11 August 1994)

(l) Informal Note by the Executive Secretary on the Needs of the Conference Services Branch for the first Session of the Conference of States Parties and any Associated Meetings of the Executive Council

(Paper 3(b) of 11 August 1994)

(m) The Role of the Security Officer within the PTS/TS of the OPCW

(Paper 4 of 14 June 1994)

(n) Note by the Executive Secretary Communicating the Report of the External Auditor on the Financial Statements of the Commission and Report of the External Auditors

(Paper No. 7 of 15 August 1994)

(o) Secretariat Non-Paper on Procurement of Inspection Equipment for Training and Evaluation Purposes

(Paper No. 8 of 13 August 1994)

(p) Secretariat Non-Paper on Procurement of Inspection Equipment for Training and Evaluation Purposes

(Paper No. 8/Rev.1 of 16 August 1994)

(q) Note by the Executive Secretary (on Income and Expenditure)

(Paper No. 9 of 16 August 1994)

(r) Analysis of Resource Requirements for Consultants, Temporary Assistance and General Temporary Assistance by Programme

(Paper No. 10 of 17 August 1994)

(s) Secretariat Non-Paper on Options for the Establishment of the OPCW Laboratory and Associated Inspection Equipment Store

(Paper No. 11 of 17 August 1994)

(t) Note by the Executive Secretary on the Finance Group Report

(Paper No. 12 of 17 August 1994)

(u) Provisional Technical Secretariat Staffing Requirements: Part I and Part II

(Paper No. 13 of 18 August 1994)

(v) Expert Group on Data Systems: Seventh Report

(PC-VIII/A/WP.2 of 22 July 1994)

(w) Fax to all Member States from Information Systems Branch and Verification Division

(024/94 of 28 July 1994)

(x) Security Model Options and their Functionality and Cost Implications

(dated 22 July 1994)

(y) Expert Group on Inspection Procedures: Third Report

(PC-VIII/B/WP.2 of 15 July 1994)

(z) Requirements - IMS Branch

(Paper No. 14 of 17 August 1994)

(aa) Provisional Technical Secretariat Unix Workstations and Personal Computers

(Paper No. 15 of 18 August 1994)

(ab) Secretariat Non-Paper: Justification for Employing Nurse at Entry into Force Minus 4 Months

(Paper No. 16 of 18 August 1994)

(ac) Secretariat Non-Paper on UNIX Server as requested in the 1995 Budget, Part I

(Paper No. 17 of 22 August 1994)

(ad) Summary of Resource Requirements by Division Part I

(Paper No. 18 of 22 August 1994)

(ae) Summary of Resource Requirements by Division Part II

(Paper No. 19 of 22 August 1994)

(af) Additional Posts requested in 1995 Part I and Part II

(Paper No. 20 of 22 August 1994)

(ag) Estimate of Travel 1995

(ah) Inspection and Laboratory Equipment

(Paper No. 22 of 22 August 1994)

(ai) Summary of Library Materials and External Databases requested

(Paper No. 23 of 22 August 1994)

(aj) Secretariat Non-Paper on the Flight Reservation System

(Paper No. 24 of 24 August 1994)

(ak) Chairman's Proposals on the 1995 Programme of Work and Budget of the Commission.

Copies of the above documents are available from the Secretariat.

ANNEX

PROGRAMME OF WORK AND BUDGET

FOR 1995 (PARTS I AND II)

VOLUME ONE

TEXT

CONTENTS

PREFACE

1. OVERVIEW AND INTRODUCTION

2. OFFICE OF THE EXECUTIVE SECRETARY

3. VERIFICATION DIVISION

4. TECHNICAL COOPERATION AND ASSISTANCE DIVISION

5. EXTERNAL RELATIONS DIVISION

6. LEGAL DIVISION

7. ADMINISTRATION DIVISION

7.2 Office of the Director of Administration Division

7.3 Budget and Finance Branch

7.4 Conference Services Branch

7.5 General Services Branch

7.6 Information Systems Branch

7.7 Personnel Branch

8. COMMON SERVICES NOT DISTRIBUTED TO PROGRAMMES

9. INFORMATION ON COMMON STAFF COSTS

APPLICABLE TO BOTH PARTS I AND II

PREFACE

1. The two elements necessary for the preparation of a sound budget are a clear forward view of the continuing activities and plans of the Organisation and a basis of past experience as a foundation for cost projections. Due to the newness of the Commission both of these elements were lacking to a significant extent when the first two budgets of the Commission were drawn up. The 1993 Budget was prepared within the first weeks of existence of the Secretariat and had to be based largely on intelligent guesswork. Although the 1994 Budget was prepared at a time when the Commission had been in existence for 6 months, the accounting systems were still being developed and were not able to provide historical data as a basis for budgeting to the necessary level of detail. The experience and the mechanisms for making accurate medium and long-term organisational and budgetary projections were in the early development phase. The 1995 Budget, therefore, is the first to be prepared on a reasonably secure basis. Eighteen months into the work of the Commission, it is now possible to identify in much greater detail the work which remains to be done and the shape of the future Organisation in terms of both staff and functions. We also have the capability to measure over the past 12 months our actual experience of certain factors related to personnel costs. The historical basis is nonetheless much shorter than that available to a mature organisation. The uncertainty over the likely date of entry into force of the Convention is still however a major complicating factor in planning the work of the Organisation.

2. The Expert Group on Programme of Work and Budget recommended to take as a target, a budget which did not exceed in total for 1995 the total of Parts I and II of the 1994 Budget. The draft presented below shows a modest increase with respect to the 1994 Budget. The proposed Budget totals Dfl. 56.8 million against a total for 1994 of Dfl. 56.4 million. Part I shows a reduction of Dfl. 7.2 million. However, Part II for 1995 shows an increase of nearly Dfl. 7.5 million. This increase arises primarily from two expanded requirements in the Verification Division. The first reflects the need to purchase additional inspection equipment (Dfl. 2.8 million). The second results from lengthening the General Training Scheme from eighteen to twenty weeks (Dfl. 1.4 million). The Expert Group concurred with need for both increases.

3. The Expert Group on Programme of Work and Budget also recommended the staffing proposed at EIF remained compatible with the size of the building to be provided by the Host Country for the Organisation. It was suggested that the target figure, including the first group of inspectors, should be 400 persons. The present Budget, will bring the staff at entry into force to 231 Secretariat members and 140 inspectors , giving a total of 371. It is possible that a small number of additional conference service staff (linguists) will need to be brought on board immediately following entry into force to service the first Conference of the State Parties and, subsequently, the Executive Council. These are not included in the above figures.

4. A necessary cautionary note relates to the cash-flow position. The over-budgeting which resulted from the necessary caution due to lack of information at the time of drafting the 1993 and 1994 Budgets has meant that the cash-flow position at present is satisfactory, despite the fact that a large number of Member States have so far not paid their assessments. The current projection for expenditure for 1994 to the year end shows that at least another Dfl. one million will be needed. It is therefore a matter of concern that the Commission has only received a little over three-quarters of the assessed funding. If the Budget for 1995 proves to be much more accurately prepared, it will be necessary for all Member States to meet their obligations to provide on time the full amount of their assessments.

5. The draft Programme of Work and Budget of the Commission for 1995, which will be submitted for approval to the Commission in its Eighth Session is the result of a joint effort of the Expert Group on Programme of Work and Budget and the Secretariat.

H.E. Jorge Morales Pedraza I.R. Kenyon

Chairman of the Expert Group Executive Secretary

on Programme of Work and Budget

29 August 1994

SECTION ONE: OVERVIEW AND INTRODUCTION

OVERVIEW

Presentation

1.1 This first volume of the 1995 Budget sets out the full Programme of Work for each division of the Secretariat and the resources therefore required. The necessary financial budget is summarised in a set of tables and charts in Volume Two, which accompanies it. The tables in Section 1 of Volume Two provide an overall summary of resources required in both money and personnel, together with an overall organisation chart. The subsequent Sections 2-8 provide tables for each division in turn, giving more detail, but using the same formats. A personnel chart is included for each division indicating for each position the grade and the budget in which it was approved if already existing, or, if this is not the case, the section of the 1995 Budget in which the request for the post is made. In both volumes the data for Administration Division are broken down by Branch.

1.2 The two volumes have been so organised that the numbering of each section of each volume corresponds exactly to the numbering of the relevant section in the other volume. For example, section 2 of Volume One contains analysis of the resource requirements of the Office of the Executive Secretary, while section 2 of Volume Two contains tables and charts about the same Office. This pattern repeats itself throughout both volumes, and will, it is hoped, be useful to the reader. For convenience, both volumes are bound as a single document.

Summary

1.3 As Table 1.1 shows, the Part I Budget for 1995 is well below that for 1994. However, the Part II Budget shows an increase of 7,528,800.

1.4 Table 1.2 shows the Part I Budget by programme. In accordance with the recommendations of the Finance Group, it is proposed to place Dfl. 7,590,500 in a Special Account which would be available for the procurement of laboratory and inspection equipment approved in the budget of 1994 from the time of its establishment until EIF or 31 December 1995, whichever is the sooner.

1.5 The Secretariat will be responsible for the selection of inspector/inspection assistant trainees from candidates offered by Member States and for their training. As part of the selection process, the Secretariat will interview all short-listed candidates in person. An amount for this purpose has been included in the budget of the Personnel Branch. The Secretariat will initiate selection of candidates for posts in Phase II which were authorised by the Commission and which will have to be filled in the first months after the start of Phase II.

1.6 Tables 1.4 and 1.5 show an increase in Part II expenditure as a result of several significant factors. Firstly, proposed Verification Division expenditure increased by Dfl. 4.8 million mainly for additional inspection equipment (Dfl. 2.8 million) and for additional estimated costs for training inspectors ( Dfl. 1.4 million). Secondly, expenditures for common services not distributed to programmes increased by Dfl. 3.1 million. This arises largely from a provision of Dfl. 1.8 million for rent of additional premises for the Commission and from a newly identified requirement of just over Dfl. 1 million for separation benefits for Secretariat staff not transferring to the Organisation after EIF. Provisions for all General Temporary Assistance and most for overtime have been consolidated in the Common Services Not Distributed to Programmes Budget.

INTRODUCTION

1.7 In accordance with Article 3 of the Financial Regulations adopted at the Fourth Session of the Commission on 1 October 1993 (PC-IV/23, paragraph 5.6), the Executive Secretary hereby submits the draft Budget for the Fiscal Year (FY) 1995.

Definitions: Phase I, Phase II and Trigger Point

1.8 Article XXI of the Convention implicitly identifies two phases in the Commission's activities. Phase I began after signature of the Convention and will continue until entry into force of the Convention (hereafter abbreviated as EIF). Phase II will begin at the trigger point and continue for 180 days, also concluding on the date the Convention enters into force. The Trigger Point is the date of deposit of the sixty-fifth instrument of ratification.

Definition of Part I and Part II of the Budget

1.9 In accordance with the Financial Regulations, the Budget of the Commission will comprise two separate parts as follows:

(a) Part I of the Budget is an annual one that relates to tasks during Phase I that permit the Commission and the Secretariat to complete all necessary preparations for Phase II of the Programme of Work.

(b) Part II of the Budget specifically relates to those tasks that the Commission shall undertake during the 180 days prior to EIF (Phase II) concerning the organisation and work of the Technical Secretariat that will require immediate attention after EIF.

1.10 The funds authorised in the 1994 Part II Budget remain available to be spent by the Executive Secretary for a period of six months after the deposit of the sixty-fifth instrument of ratification, even if this period may run partly into financial year 1995 (assuming the trigger point is in 1994). The current Budget proposal includes a revised Part II to be called upon by the Executive Secretary if the Part II trigger point does not occur until some time in 1995. The financial and staffing tables in Volume Two show the full 1995 Part II budget request, but the explanatory notes in Volume One highlight only the changes from the already approved 1994 Part II Budget. If the trigger occurs in 1994 after approval of the 1995 Budget the Executive Secretary will request activation of the revised Part II.

1.11 In preparing the budget estimates for 1995, due account was taken of the guidance offered by the Commission in the Report of its Sixth Session (PC-VI/22).

1.12 As directed in paragraph 3.2 of the Financial Regulations and paragraph 23 of PC-IV/A/WP.7, this submission follows the general tenets of a Programme Budget whereby it is "...closely linked to the Programme of Work".

1.13 The 1995 Programme of Work of the Commission has been prepared on the basis of the following documents:

(a) the Chemical Weapons Convention;

(b) the Resolution establishing the Commission;

(d) "Proposed Structure for the Budget of the Commission for 1995" (Annex 2, PC- VII/A/WP.11);

(e) Finance Group: Report of the Second Meeting (30 May and 1 June 1994);

(f) Finance Group: Report of the Third Meeting ( 1 - 5 August 1994) (PC-VIII/A/WP.4);

(g) Sixth Report of the Expert Group on Programme of Work and Budget (PC-VII/A/WP.4);

(h) Seventh Report of the Expert Group on Data Systems

(PC-VIII/A/WP.2);

(i) Third Report of the Expert Group on Inspection Procedures (PC- VIII/B/WP.1); and

(j) Expert Group on Inspection Procedures Note from the Chairman (PC- VIII/B/WP.2).

1.14 The specific content of the Programme of Work for 1995 will depend upon progress made by the Expert Groups in completing their work during 1994 and upon the rapidity with which the 65th instrument of ratification is deposited. Nonetheless an extensive list of tasks has been prepared for each division of the Secretariat identifying both continuing activities and new requirements identified since the preparation of the 1994 Programme of Work, . It should be stressed that where the Programme of Work indicates formulation of policy, this will usually be carried out in the context of an appropriate Expert Group or other organ of the Commission, with final responsibility resting with Member States.

1.15 The provisions for temporary assistance and consultancy have been utilised according to the following principles. Where a new post has been identified as necessary for the remainder of the existence of the Commission and where there is a likelihood that a similar post will be required in the Technical Secretariat (TS), a proposal is made for adding a new post to the staffing structure. Where the post is identified as being necessary shortly before the commencement of Phase II, the full cost of the post is included in the Part II Budget, but the Part I Budget contains a provision for one or two months of temporary assistance at the equivalent grade. Similarly, posts which are identified as necessary only in the build-up to EIF, or, in one case, in the period prior to the commencement of Phase II, are been covered by temporary assistance and no permanent increase to the staffing structure is proposed. All requirements for consultancy assess whether staff members or someone on a temporary appointment could perform the tasks. "Consultancy" funds are only requested in cases where an outside company will be contracted to undertake a definite piece of work which cannot be accommodated in the aforementioned ways.

Primary assumption

1.16 All Member States of the Commission are committed to an early EIF.

Objectives

1.17 The objectives identified in the 1994 Programme of Work for the Commission (PC-V/A/WP.3, paragraph 2.3) remain in force, and are reprinted below. Individual objectives may apply to more than one division. Specific objectives of the Office of the Executive Secretary and of each division are set out in the introductory text in sections 2 to 7. The 1994 Programme of Work identified the following objectives which have to be accomplished by EIF. At that time the Commission should have:

(a) fully trained inspectors and inspection assistants;

(b) list of inspection personnel for designation;

(d) procedures and equipment ready for on-site monitoring;

(e) the equipment store in place, and the bulk of inspection equipment acquired;

(f) maintenance procedures and guidelines established;

(g) all model facility agreements completed;

(h) all declaration formats and guidelines completed;

(i) all guidelines required for verification activities finalised and the draft inspection manuals completed;

(j) calibration procedures in place;

(k) the OPCW logistics plan finalised;-

(l) completed the build-up of the OPCW Laboratory;

(m) the Operations and Planning Centre fully operational;

(n) the Health and Safety Office fully operational;

(o) rules for transportation of samples finalised;

(p) all arrangements necessary for the transition from the Commission to the OPCW prepared;

(q) draft Staff and Financial Regulations and Rules for the OPCW in place;

(r) draft agreements necessary for the work of the OPCW in place;

(s) draft rules of procedures for the organs of the OPCW in place;

(t) arrangements for election of the Executive Council in place;

(u) all necessary arrangements for the first Conference of States Parties adopted;

(v) rules for the administration of the Voluntary Fund for Assistance in place;

(w) the draft model agreement between the OPCW and the States Parties for the procurement of assistance in place;

(x) the format for declaration from States Parties for providing assistance on the Article X in place;

(y) all data bases regarding implementation of Article X in place;

(z) the Information Management System (IMS) of the OPCW in place and operational;

(aa) all guidelines for handling of confidential information completed;

(bb) a classification system for confidential information in place;

(cc) a draft Programme of Work and Budget for the first year of the OPCW prepared;

(dd) appropriate OPCW interim accommodation identified and a decision on a permanent building adopted; and

(ee) decision flow charts/organigrams of the OPCW prepared.

Basic assumptions having budgetary implications

1.18 Listed below are the basic assumptions (a revision of those appearing in

PC-V/A/WP.3) which form the basis for elaborating the 1995 Programme of Work and Budget of the Commission:

(a) for budgetary planning purposes it is assumed that on the one hand deposit of the 65th instrument of ratification might occur before 1 January 1995 whilst on the other hand it might not occur until after 30 June 1995;

(b) the United States of America and the Russian Federation will deposit their instruments of ratification prior to EIF;

(c) States which possess or have under their jurisdiction or control the majority of declarable facilities will deposit their instruments of ratification prior to EIF;

(d) the bilateral agreement of June 1990 between the Russian Federation and the United States of America on destruction and non-production of chemical weapons will be in force and in the process of implementation at EIF. The Commission will recommend that the Organisation decide, pursuant to Article IV, paragraph 13 and Article V, paragraph 16, of the Convention, to limit verification by the OPCW to measures complementary to those to be undertaken under this agreement;

(e) the Budget for 1995 will be sufficient to permit the Commission to complete the Programme of Work and complete preparations for Phase II;

(f) the projected Budget figures for 1995, when taken with the 1994 Part II Budget approved by the Commission at its Fifth Session and the proposed supplement thereto, will be limited to the minimum needed to prepare for the effective implementation of the Convention. The 1995 estimates will be based on resource requirements needed to conduct Commission activities in an efficient, effective and economical manner through the new Budget year;

(g) new staff for the Secretariat in 1995 will be appointed at the lowest grade at which personnel with suitable qualifications and experience can be recruited, taking into account the duties of the position and the level of responsibility associated with it. Maximum use will continue to be made of local hires in the recruitment of general services and manual worker categories of staff;

(h) the expenditures of funds allocated for the appointment of new professional personnel under the 1995 Programme of Work and Budget will be incurred, continuing to take into account the current situation in the Secretariat and the views expressed at the Sessions of the Commission with respect to personnel policy, in the light of the recommendation in paragraph 7 of the Report on the Third Report of the Staff Regulations (PC-IV/A/WP.5) that due regard be paid to the importance off properly applying Staff Regulation 4.2 to recruit the staff on as wide a geographical basis as possible;

(i) the procurement of equipment will be made on a competitive basis, taking into account the relevant Financial Regulations, in particular Article 10.5

(PC-IV/A/WP.4);

(j) appropriate arrangements will be developed in order to facilitate the transition from the operations of the Secretariat to those of the Technical Secretariat (TS); and

(k) assessed contributions will be available by January 1995.

Detailed assumptions with budgetary implications

1.19 The section comparable to this one in PC-V/A/WP.3 contained costing criteria and detailed assumptions of the budgets of certain divisions and branches. The costing criteria remain, but the detailed assumptions, if any, of divisions and branches, have been transferred to the respective sections of the Budget dealing with individual units of the Secretariat. Consolidating all the relevant information in individual sections should make for easier reference.

1.20 The Legal Division staffing requirements foreseen in Part II of the 1995 Budget are based on the assumption that the authentic texts of the bilateral and other agreements designed to implement the Convention will be concluded in only the official languages of the OPCW.

Costing

1.21 Budget proposals for the salaries and common staff costs are based on standard costs which have been recalculated in the light of actual statistical data with regard to the average salary step and the average number of dependants within the professional and the general service staff, the weighted average standard costs of General Service-other level (GS-OL) staff, the percentage of international recruits within the General Service staff and the average cost of each element of the common staff costs.

1.22 Without prejudice to decisions of the Commission regarding long term salary policy, the standard salary costs were calculated on the basis of the prevailing salary scales of the United Nations Common System. For the staff of the professional and higher categories, separate standard costs for each level from P-2 to the highest level Assistant Secretary General (ASG) were calculated at the average step IV. In respect of the GS category of staff, only two standard salary rates were calculated at the average step III, one for the "principal level" at the level GS-6 and the other at the "other levels" representing the weighted average salary cost of levels GS-2 to GS-5.

1.23 Common staff costs consist of recurrent and non-recurrent costs. The recurrent costs are dependency allowance, education grant (including travel), home leave travel, rental subsidy and the contributions of the Commission to the Provident Fund and to the medical insurance schemes. The non-recurrent common staff costs are the costs payable by the Commission for the employment of internationally recruited staff, and consist of cost of travel for interviewing short-listed candidates, travel on appointment of the selected candidate and his dependants, assignment grant and the cost of removal of household effects. Separation costs have been placed in a separate provision (see paragraph 1.25 below).

1.24 The common staff costs have been computed on the following assumptions:

(a) the average number of dependants for each staff member in the Professional (P) category is two and in the GS category one and a half; and

(b) 5% of the GS posts are considered international recruits with the entitlements that this status entails.

1.25 A provision for separation benefits has been computed on the assumption that 20% of the staff of the Commission will not continue their employment with the OPCW. The provision is included in Section 7, Part II of the 1995 Budget under the heading of common services not distributed to programmes. It is comprised of repatriation grants, cost of removal of household effects, travel on separation and computation of annual leave.

1.26 With regard to budget proposals other than staff costs, actual costs prevailing in the market were obtained to the extent possible in order to arrive at reasonably accurate figures. The point of departure has been the stated requirements based on detailed assumptions of each programme/division. For example, for travel programmes, wherein area destination and approximate durations have been the basis of calculations, costing has followed presently prevailing air tariffs and travel entitlements. The cost of air travel will be budgeted at no more than full fare economy class for trips of less than 14 hours duration. For trips of more than fourteen hours' duration, a stopover would be authorised. The Secretariat will adopt additional measures to ensure the most cost effective arrangements for this item of expenditure.

1.27 The Office of the Executive Secretary manages the overall budget for official travel. Each division submits quarterly estimates of anticipated official trips, which are reviewed by the Office of the Executive Secretary to ensure that the trip is justified and that it has been coordinated with the travel requirements of other divisions. A staff member from one division can in some cases perform tasks for another division while on an official trip. Travel to seminars is coordinated amongst divisions to ensure that only the minimum number of staff attends a given seminar, without, of course, depriving the seminar of adequate representation for the particular subject or subjects under discussion. The Secretariat maintains a register of all official trips and requires the filing of a report at the end of each trip.

1.28 The costing of budgetary provisions for 1995 has taken into account, where appropriate, the following percentage increases for inflation projected for the Netherlands by the Dutch Central Plan Bureau and for major countries in Europe, North America and Asia by an economic forecast prepared by the Chase Manhattan Bank:

3% on local procurement of supplies, equipment and services;

3% on international procurement of supplies, equipment and service; and

- 3% on salaries and common staff costs of all staff.

Income (excluding assessments)

1.29 Miscellaneous income, which comprises mainly, interest income from investments of temporary surplus cash, is estimated at Dfl. 300,000 for Part I of 1995 and at Dfl. 150,000 for Part II of 1995.

SECTION 2. OFFICE OF THE EXECUTIVE SECRETARY (PART I)

Objective

2.1 To provide full support to the Commission in all aspects of preparation for EIF recruitment and training of staff; development and, where appropriate, implementation of technical and administrative procedures and procurement of equipment.

Part I and Part II Programme of Work

2.2 The following Programme of Work is to be performed by the Office of the Executive Secretary:

General

(a) administer work programmes and budgets approved by the Commission;

(b) direct and manage the Secretariat in its work in implementing such programmes and budgets;

(c) make recommendations to the Commission on appointments to senior management positions and directly appoint all other necessary staff; and

(d) conduct internal audits of the Secretariat.

Security

(e) develop the security policy for the OPCW and implement its policy mutatis mutandis for the Commission;

(f) continue to enhance the physical security of the existing premises of the Commission;

(g) identify the security needs of any additional building selected for use as interim accommodation;

(h) assist the Executive Secretary to develop further and implement personnel, information management systems and document security practices and procedures;

(i) make arrangements for the contract to be let for security and manage the guard force; and

(j) conduct the security-education programme.

Part I personnel appropriations

2.3 It is proposed to bring forward from Phase II two positions:

(a) Internal Auditor P-4

The post of Internal Auditor, originally included in Part II, has been brought forward to Part I in accordance with the recommendation of the Finance Group (paragraph 3.8.1 of PC-VIII/A/WP.4). Dfl.246,400

(b) Security Officer P-4

The post of Security Officer, originally included in Part II, has been brought forward to Part I and upgraded from P- 3 to P- 4 in accordance with the request of the Executive Secretary (subparagraph 4 (d) (i) of PC-VI/13 and paragraph 2.1 PC-VII/2)

Dfl. 246,400

Part I other appropriations

Consultants

2.4 This request is for consulting services on administrative issues, particularly those relating to security and building matters. A provision of Dfl. 85,800 is based on ten days per month, and represents a reduction of Dfl. 238,200 from 1994. In both instances the consultants on security and building matters provide a level of experience, expertise and knowledge of the local situation that staff members of the Secretariat do not possess. Consulting contracts do not incur common staff costs.

Dfl. 85,800

General Temporary assistance (see Common Services Budget)

2.5 Temporary assistance will be required to assist the Executive Secretary in dealing with the establishment of terms and conditions for training inspector/inspection assistant candidates. Provision is made for the temporary recruitment of a member of staff at a senior and experienced level, who will also assist the Verification and Administration Divisions in the initial screening of the applications of these candidates. It is estimated that the financial resources required will be the equivalent of one P-5 salary for six months. (Dfl. 75,900)

Official travel

2.6 By virtue of their positions, the Executive Secretary and Deputy Executive Secretary receive invitations from Member States, international organisations, and other entities, which require travel to represent the interests of the Commission and the Secretariat.

Dfl.115,000

OFFICE OF THE EXECUTIVE SECRETARY (PART II)

Part II personnel appropriations

2.7 The issue of establishing an office within the TS to ensure adequate planning and co-ordination of the work of the Conference of the States Parties and the Executive Council will be dealt with as part of an overall solution with respect to the whole TS structure.

2.7.1 Secretary(GS-OL)

Pending such a long-term solution, a new post at GS-OL level will be added to the Office of the Executive Secretary at four months before EIF.

Dfl. 36,065

Part II other appropriations

2.8 No Part II other resources are required.

SECTION 3. VERIFICATION DIVISION (PART I)

Overview

3.1 The Division is responsible for assisting the Commission with the development of all procedures and the establishment of all capabilities required to verify compliance with the Convention upon EIF.

Responsibilities

3.1.1 The Division derives its responsibilities from the following provisions of the Paris Resolution: paragraphs 1; 8(c) and (d); 10 (d) and (g); 11 (a) and (b); 12 (a), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v) and (w); 15; 16; and Annex 3, paragraphs 10, 11 and 12. All of these are closely linked to the implementation of the Convention after EIF, in particular to Articles I, II, III, IV, V, VI, VIII, IX and XV; the Annex on Chemicals; the Annex on Implementation and Verification ("Verification Annex"); and the Annex on the Protection of Confidential Information ("Confidentiality Annex").

Objectives

3.1.2 Mandated Objectives (PC-V/A/WP.3)

(a) fully trained inspectors and inspection assistants;

(b) list of inspection personnel for designation;

(d) procedures and equipment ready for on-site monitoring;

(e) equipment store in place, bulk of inspection equipment acquired;

(f) maintenance procedures and guidelines established;

(g) all model facility agreements completed;

(h) all declaration formats and guidelines completed ;

(i) all guidelines required for verification activities finalised and draft inspection manuals completed;

(j) calibration procedures in place;

(k) OPCW logistics plan finalised;

(l) complete build-up of the OPCW Laboratory;

(m) operations and planning centre fully operational;

(n) Health and Safety Office fully operational;

(o) rules for transportation of samples finalised;

(p) all guidelines for handling of confidential information completed; and

(q) classification system for confidential information in place.

Part I Programme of Work

3.2 The Programme of Work for Phase 1 in 1995 will comprise eight main elements, as set out below. Most of the activities in the Programme of Work are ongoing. New activities have been indicated with an asterisk.

(a) Declaration procedures

This element in the Programme of Work (subparagraph 12 (a) of the Paris Resolution) embraces the following components:

(i) finalise all declaration handbooks and forms and accompanying instructions and implement data structures and client applications for data management for:

chemical weapons storage facilities(CWSFs);

chemical weapons production facilities (CWPFs) and their destruction or conversion;

cw destruction facilities (CWDFs);

old chemical weapons (CW);

abandoned CW;

schedule 1 facilities;

schedule 2 facilities;

schedule 3 facilities;

other chemical production facilities;

riot control agents;

past CW development activities;

destruction of CW;

destruction of old CW; and

destruction of abandoned CW.

(ii) conduct further trial declaration exercises; and

(iii) conduct test-runs of the functioning of the initial phase-in of the OPCW Information Management System (IMS).

(b) Model facility agreements

This element in the Programme of Work (subparagraphs 12 (i) and (r) of the Paris Resolution), carried out with the assistance of the Legal Division, embraces the following components:

Finalise model facility agreements and the development of procedures for their use for:

CWSFs;

CWPFs;

CWDFs including those for old and abandoned CW;

Schedule 1 facilities;

Schedule 2 facilities; and

Schedule 3 facilities (optional).

This element in the Programme of Work (subparagraphs 12 (u), (v), and (w) of the Paris Resolution and the Confidentiality Annex), carried out with the assistance of the Legal Division, the Information Systems Branch and the Security Officer, embraces the following components:

(i) compile the final draft of all guidelines related to the handling of confidential information: procedures and regulations for accepting, processing, filing and storing; procedures in case of breach or alleged breach; release procedures; clearance procedures for access; and

(ii) compile administrative directives to implement the OPCW Policy on Confidentiality.

(d) Verification activities

This element in the Programme of Work (subparagraphs 12 (a), (f), (j), (k), (l), (m), (n), (o), (p), (q), (s), (t) of the Paris Resolution and the Verification Annex) embraces the following components:

(i) finalise all guidelines for verification activities including provisions for inspection frequencies at declared facilities:

CWSFs;

CWPFs;

CWDFs;

old and abandoned CW; and

schedule 1 facilities.

(ii) fine tune inspection report (initial/draft and final) formats for:

CWSFs;

CWPFs ;

CWDFs;

schedule 1 facilities;

schedule 2 facilities;

schedule 3 facilities;

challenge inspections;

investigations of alleged use of CW; and

old and abandoned CW.

(iii) conduct visits to various types of facilities to refine and finalise development of procedures, report formats, etc.;

(iv) conduct visits to CWDFs to discuss the detailed arrangements for transitional verification arrangements;

(v) finalise drafts of inspection manuals;

(vi) contribute to maintaining contacts with the chemical industry;

(vii) contribute, where appropriate, to regional seminars;

(viii) compile appropriate databases for the support of verification activities;

(ix) finalise, with the assistance of the Legal Division, together with appropriate Member States the detailed arrangements for the conduct of complementary verification;

(x) finalise, with the assistance of other divisions, administrative arrangements for the conduct of inspections, including procedures for use of scheduled and non-scheduled flights, transport of inspection equipment, etc.;

(xi) initiate preliminary inspection planning for the first months after EIF;

(xii) finalise criteria for toxicity, corrosiveness and other technical factors to assess the risk of converted CW production facilities; and

(xiii)* establish a quality assurance (QA)/quality control (QC) regime for the Division.

(e) Inspection equipment

This element of the Programme of Work (subparagraphs 10 (g) and 12 (e) of the Paris Resolution) embraces the following components:

(i) finalise the draft list of inspection equipment for consideration and approval by the First Conference of the States Parties;

(ii) finalise the development of maintenance and calibration procedures for inspection equipment;

(iii) finalise procedures for the installation, monitoring, repair and physical security of on-site monitoring equipment;

(iv) assist the Administration Division with the procurement of inspection equipment, approved by the Commission, intended to support the conduct of training courses and inspection activities immediately after EIF; and

(v) establish the OPCW Equipment Store.

(f) Recruitment and training of technical support staff

This element in the Programme of Work (subparagraphs 8 (c) and 10 (d) of the Paris Resolution), carried out together with the Legal and Administration Divisions, embraces the following components:

(i) participate in the finalisation of employment terms and conditions for inspectors;

(ii) participate in the selection of the inspector/inspection assistant candidates;

(iii) participate in the selection of staff for Phase II posts in the Verification Division;

(iv) review the certification of national training programmes;

(v) develop training materials for trainees and where resources permit, assist with instruction in national training courses; and

(vi) coordinate further refinements to the content and structure of the General Training Scheme (GTS).

(g) Analytical services

This element in the Programme of Work (subparagraph 12 (h) of the Paris Resolution) embraces the following components:

(i) compile the OPCW Compound Spectral data base;

(ii) finalise screening/validation procedures of designated laboratories;

(iii) assemble network of designated laboratories including coordination of inter-laboratory comparison tests;

(iv) develop procedures for the security, integrity and preservation of the confidentiality of samples;

(v) finalise the build-up of the OPCW Laboratory; and

(vi) assist the Administration Division in the procurement of all approved OPCW Laboratory equipment.

(h) Health and Safety

This element in the Programme of Work (subparagraph 12 (g) of the Paris Resolution) embraces the following components:

(i) finalise health and safety documentation and procedures;

(ii)* establish hazard database (including occupational exposure limits);

(iii)* establish database on health and safety standards of Member States for planning of inspections;

(iv) establish medical criteria for substantiation of alleged use of chemical weapons; and

(v)* assess the medical suitability of inspector candidates and other staff.

3.3 Part I personnel appropriations: current situation

3.3.1 The authorised strength for the Division in Phase 1 in the 1994 Budget was 38 posts. Fourteen of these were so-called EIF minus 7 months posts, i.e. full funding for them was provided from June 1994 (EIF minus 7 months) onwards. At its Sixth Session, the Commission authorised filling three of these fourteen EIF minus 7 month posts on an immediate basis.

3.3.2 Of the 27 posts now authorised for filling in Phase I, 23 are currently occupied and action is underway to recruit the remaining four.

Proposed modification to approved staff allocation

3.3.3 In the light of the reevaluation of the role and functions of the OPCW Laboratory, it is proposed to downgrade the position of the Head of the OPCW Laboratory from P-5 to P-4.

Elimination of posts

3.3.4 It is proposed to make the following changes in 1995 to the remaining eleven EIF-7 month posts:

- one P-3 Training Officer (National Authorities/PTS)

- one P-3 Training Officer (Trainee recruitment and evaluation).

Part I other appropriations

3.4 Part I other appropriations consist of the following eight subheads: Consultants, General Temporary Assistance, Official Travel, OPCW Laboratory and Inspection Equipment, OPCW Laboratory and Equipment Store, Analytical Services, Training (under three separate categories), and Health and Safety (under four separate categories).

Consultants

3.4.1 The consultancy provision, (Dfl. 98,000), is reduced by Dfl.50,800 from the provision in the 1994 Budget. The reduction resulted from the completion of certain tasks or from the ability of staff members to perform the functions. Consultancy fees in the Netherlands are typically in the order of Dfl. 245 per hour and the provision is for 400 hours of consultancy. Consultants would be engaged to assist the Secretariat to complete specific tasks only when in-house expertise is not available. Such tasks could include, inter alia:

(a) finalisation of the layout of inspection manuals, training materials, declaration forms and handbooks, attachments for model facility agreements and other materials, by employing a professional designer to advise on their "user friendliness";

(b) development of IMS client applications for the processing of verification data to include e.g. data input applications for declarations to be submitted by Member States, applications for the generation of inspection reports, facility agreements and other structured verification data;

(c) compilation of data from appropriate databases for inclusion in the chemicals handbook and in part of the IMS, to include data on chemical nomenclature, health and safety information, physical, chemical and toxicological properties and other data. Appropriate databases might include: CAS, Chemical Business News Base, Cheminform RX, Chemical Industry Notes, Chem Sources, CSOR), Gmelin, Phar, Beilstein Online, Derwent World Patents Index, IRPTC, NIOSH, and ILO. Furthermore, data made available by interested Member States will be included;

(d) assistance with the development of QA/QC procedures for the Verification Division; and

(e) assistance in the development of requirements for OPCW Laboratory design, equipment stores including maintenance and calibration facilities, assistance in compliance with Dutch construction and chemical operation permits requirements.

Total Dfl. 98,000

General temporary assistance (see Common Services Budget)

3.4.2 Temporary assistance is requested for the remaining nine EIF-7 posts. In the 1994 Part I Budget several posts were identified as authorised for filling one month before the end of the Phase I period. This had the result of distorting the Budget, as an arbitrary date for costing the position had to be included. To avoid the problem it is proposed to include those posts in the establishment for Part II with full recruitment costs for Part II of the Budget. A provision of up to Dfl. 121,800 is included in Part I of the Budget under General Temporary Assistance to facilitate the actual recruitment of the following posts a few weeks before the deposit of the 65th instrument of ratification (3 at P-4 level, 1 at P-2 level, 5 at GS-OL level) ).

Official travel

3.4.3 The estimate (Dfl. 265,000) is designed to cover the cost of air tickets, daily subsistence allowances and terminal expenses in support of travel undertaken in accordance with the Programme of Work. It includes travel connected with the following activities:

(a) Inter-laboratory comparison tests

The Secretariat is responsible for co-ordinating the programme of inter-laboratory comparison tests,. which requires overseeing on a selective basis sample preparation procedures and the evaluation process as well as discussing the results of the inter-laboratory comparison tests with the relevant laboratories. The requirement is for some trips, proportionate to the number of inter-laboratory comparison tests planned for 1995 .

(b) Health and Safety Office

Most trips will cover several activities in each place visited. These activities are: collection of health information on Member States (review commercial and non-commercial databases), assessment of medical evacuation options (review services available in region), establishment of OPCW exposure limits (discuss limit variations in specific countries), and establishment of hazard computer database (take up offer by the International Labour Office to make use of its database).

This activity will be carried out as part of the industry outreach programme conducted under the auspices of the Secretariat's Inter Divisional Industry Outreach Task Force headed by the External Relations Division. It is therefore intended to broaden the Secretariat's knowledge about the industries and facilities covered under the Convention and to apprise industry of the detailed requirements for the implementation of the Convention. For budget purposes it is assumed that the five trips planned will be to the five geographical regions.

(d) Regional seminars

Currently six regional seminars are planned for the last six months of 1994. It is expected that approximately the same rate of activity will be maintained in 1995. The Verification Division is therefore expecting to participate in ten seminars next year to provide participants with technical advice and guidance on issues related to the implementation of the Convention.

(e) Quality Assurance/Quality Control (QA/QC) programme

This request is intended to cover visits to laboratories which apply to become OPCW designated laboratories, to check, inter alia, on their QA/QC procedures and, if necessary, to assist with the development of such a regime for the OPCW Laboratory.

(f) Trial declaration exercise

Trips to five regions are planned for the purpose of holding discussions with the participants in the trial declarations exercise upon its completion. The purpose is to identify areas of difficulty that Member States may have with filling out declaration forms, as well as identifying facilities subject to declarations under the Convention. Follow-up discussions will facilitate the development of the declarations processing procedure, and will ensure the consistency of data tables and data fields used.

(g) Visits to declarable facilities

Working visits to declarable facilities are required to clarify the practical implications of the verification regime and to improve and adjust where necessary the contents of the Inspection Manual and Inspection Procedures prior to the initiation of inspector training. Current planning is that this provision will involve some visits to CWSFs, CWPFs, CWDFs, and Schedule 1, 2 and 3 facilities

(h) Remainder of the Programme of Work of the entire Division

This line item is planned at almost half the level of the 1994 Budget, as the Verification Division's travel requirements become more programme-specific. It is to enable senior officers of the Division to undertake activities not included in the programme above, such as to respond to invitations to visit Member States and to accept invitations to attend arms control conferences and seminars.

Dfl. 265,000

OPCW Laboratory and Inspection Equipment

3.4.4 The Secretariat has been authorised to procure laboratory and inspection equipment from the appropriate section of Table 3.8 to the value Dfl. 7,590,500 using funds from the Special Account set up for this purpose. In addition, the Secretariat is authorised in Phase I to procure inspection equipment up to the value of Dfl. 1,600,000 from the appropriation in the Part I 1995 Budget, selected from the items in Table 3.8. The precise items of equipment to be procured are to be determined by the Secretariat in the light of the circumstances at the time the orders are placed.

Total Dfl. 1,600,000

3.4.5 In order to procure major items of inspection equipment (above Dfl. 100,000) in the most cost-effective way, such equipment will not be purchased prior to the Secretariat's (supported by evaluation tests carried out by Member States' ) having finalised the evaluation of incoming proposals. Equipment being evaluated should be leased or otherwise acquired rather than purchased.

OPCW Laboratory and Equipment Store

3.4.6 On the assumption that a satisfactory arrangement will be concluded with the owners of the Heulweg facility, the annual costs for the rent, running costs and services associated with the OPCW Laboratory and equipment store (gas, electricity, water, cleaning, routine maintenance and security) will be

OPCW Laboratory and Equipment Store

Annual rent Dfl 260,000

Running costs Dfl. 300,000

Supplies Dfl. 20,600

Sub-total Dfl. 580,600

Analytical services

3.4.7 Support for inter-laboratory comparison tests. At its Sixth Session, the Commission adopted the criteria for designation of laboratories by the Organisation. It decided, inter alia, that this would include regular participation and successful performance in inter-laboratory proficiency tests (subparagraph 6.4 (c) of PC-VI/22). It is assumed that the current practice of inter-laboratory comparison tests being conducted under the Commission's auspices will be continued.

(a) For planning purposes, it should be assumed that four such tests will be carried out in 1995. Each test will involve the following functions:

(i) preparation of the samples and shipping them to up to twenty-five participating laboratories; and

(ii) evaluation of the results and preparation of a report for circulation to the participating Member States.

(b) The costs to laboratories of Member States participating in inter-laboratory comparison tests, including the costs set out in (a) above, will be borne by the laboratories participating in the tests. A provision has been made in the Budget for the Technical Cooperation and Assistance Division for assistance, if necessary, to certain laboratories to participate in these tests.

3.4.8 Equipment sufficient for the OPCW Laboratory to fulfil its role of providing support to the inter-laboratory comparison tests and subsequently also to play its quality assurance role for designated laboratories will be needed by early 1995.

Training

Inspection requirements

3.4.9 The detailed assumptions in relation to inspection requirements in the first year after EIF are set out in Attachment 1. They have undergone only minor changes to the inspection requirements set out in the 1994 Budget approved by the Commission at its Fifth Session. These minor changes do not in themselves affect resource requirements for Phase I for 1995.

Selection of training courses

3.4.10 The principal criteria for selecting training courses from amongst those offered by Member States shall be cost effectiveness and the quality of training offered. The Secretariat has prepared and circulated to Member States that have offered training courses a comprehensive course certification questionnaire soliciting a wide variety of information on the facilities, instructors, course content, etc., including their cost implications.

3.4.11 The following options in regard to reimbursement for certified training courses offered by Member States are envisaged:

(a) training courses free of charge for the Commission excluding remuneration, comprehensive insuranceand international travel for the trainees;

(b) training courses free of charge for the Commission excluding remuneration, accommodations and meals, comprehensive insurance and all travel for the trainees;

(d) training courses to be reimbursed fully by the Commission.

Selection of inspector/inspection assistant trainees

3.4.12 The number of inspector/inspection assistant candidates engaged in training courses will be higher than the number of inspection personnel required, to account for a normal drop-out rate during the course. It is therefore assumed for budget purposes that 160 inspector/inspection assistant candidates will undergo training at EIF-5 months and will complete their training by EIF.

3.4.13 The following criteria will apply in the selection process prior to actual training. Candidates must have, in the judgement of the Secretariat, the necessary background and experience to complete successfully inspector/inspection assistant training and be employed as inspectors/inspection assistants. They will be required to pass the appropriate medical examinations before commencing the training courses. These medical examinations must be conducted in accordance with the approved OPCW Health and Safety Policy Statement.

3.4.14 The process of identification of trainees commenced at the end of January 1994. Interviews will take place in the period 120-90 days prior to the start of training. Selection of inspector/inspection assistant trainees by the Secretariat, which will include medical screening of selected candidates, will be completed no later than 90 days prior to the start of training. For this process to proceed smoothly, appropriate staff in other areas of the Secretariat (e.g. personnel, finance, data management, health and safety) will need to be recruited and in place no later than 120 days prior to the start of training.

Health and safety

Databases

3.4.15 The Health and Safety Office will establish and maintain a comprehensive chemical hazards database on scheduled chemicals and other hazardous chemicals and non-chemical hazards (paragraphs 5.1.2 and 5.1.3 of the approved Health and Safety Policy Statement, PC-VI/B/WP.10). The database will also include relevant health and safety information from Member States (ibid., subparagraph 5.3.2 (a)). Provision for this item are at paragraph 7.6.4 below.

3.4.16 The Health and Safety Office will also maintain, in conjunction with the External Relations Division, a database of prevailing health conditions and existing medical facilities in Member States in order to plan for the safe conduct of inspections (paragraph 5.3.3 (a) of the approved Health and Safety Policy Statement, PC-VI/B/WP.10). This will require subscription to one or more commercial databases. Provision for this item is included in paragraph 7.6.4 below.

Medical treatment and examinations

3.4.17 Provision for the following medical treatment is in the budget of the Personnel Branch:

(a) for the Secretariat offices in The Hague: limited first aid; and

(b) for Secretariat staff travelling away from The Hague on duty: vaccinations, travellers' medical kits, and provision for medical evacuation.

Health and Safety Library

3.4.18 No provision was made in the 1994 Budget for a Health and Safety Library. This is necessary for reference for the preparation of Health and Safety Regulations and Guidelines and Treatment Protocols in Phase I. While specialist reference texts on such subjects as tropical medicine, toxicology, occupational exposure levels, occupational medicine and occupational hygiene are available from other libraries in The Hague and elsewhere, these references will be required after EIF for the provision of medical and health and safety advice at all hours to inspection teams in the field. Thus it is clear that the OPCW will require its own intrinsic Health and Safety Library that can be accessed at any time. An amount of Dfl. 5,200 is proposed for this activity. There will be modest recurrent annual costs, as updates to this information will be required from time to time.

Total Dfl. 5,200

VERIFICATION DIVISION (PART II)

3.5 Part II Programme of Work

(a) complete the training of the first group of inspector/inspection assistant trainees and selected Verification Division staff;

(b) conduct induction courses for staff recruited in Phase II;

(d) assist the Administration Division in procuring any additional equipment needed for inspections during the first six months after EIF;

(e) complete the transition to the EIF structure of the Verification Division; and

(f) carry out all preparations necessary to ensure the smooth implementation of verification measures after EIF including participation in the:

(i) preparation of all necessary material for the First Conference of the States Parties; and

(ii) compilation of the list of inspectors/inspection assistants for designation for routine and challenge inspections for the Director-General to submit to the States Parties shortly after EIF.

Part II personnel appropriations

Changes to divisional structure

3.6 It has been decided to make some changes to the structure of the Division in Phase II. These changes, which do not have any resource implications, are set out in Attachment 3.

3.6.1 A number of changes are proposed to the Part II recruitments authorised by the Commission in its 1994 Budget. It is proposed to increase the number of posts recruited in Phase II by the creation of the eight new posts in Phase II which were part of the Division's original proposals for recruitment at EIF, but which were struck out of the 1994 Budget on the understanding that they would be considered by the Commission again later as part of the first draft OPCW budget request; and to offset partially the increase by the elimination of seven posts, including two from Part I already approved by the Commission. The net effect of these changes will be to increase the size of the Division in Phase II by 1, to a total of 68, from the total of 67 posts approved by the Commission at its Fifth Session. The proposed changes are outlined below.

3.6.2 The existing Phase II structure includes the following nine posts initially approved by the Commission in the 1994 budget for recruitment at EIF-7 months: 1 P-4 Senior Medical Officer, 1 P-4 Senior Safety Officer, 1 P-4 Head of Training Management Unit, 1 P-2 Training Officer, 1 GS-OL Training Clerk, 2 GS-OL Secretaries, 1 GS-OL Receptionist, and 1 GS-OL Storage Specialist. These posts have been deleted from the 1995 Phase I structure and their recruitment will be financed prior to the initiation of Phase II from the General Temporary Assistance Budget for Part I (paragraph 3.4.2 above). Therefore, full funding for these posts already authorised in the 1994 Budget should commence at the start of Phase II.

3.6.3 The following 67 posts in the Verification Division were authorised by the Commission in 1993 for recruitment in Phase II (PC-V/A/WP.3). These are in addition to the 38 posts then authorised for Phase I (paragraph 3.5.1). The posts listed below should be considered in conjunction with Attachment 3:

Office of the Director, Verification Division

1 GS-PL Personal Assistant (upgrade from GS-OL Secretary in Phase I,

thus not counting against the 67 total number of posts approved for Phase II)

Health and Safety Unit

1 P-3 Safety Officer

Declarations and Confidentiality Branch

1 P-4 Head of Information Processing Session

1 P-3 Information Officer

1 P-2 Information Officer

5 GS-OL Data Processing Clerks

1 P-5 Head of Information Validation and Evaluation Section

3 P-3 Validation Officers

2 P-2 Validation Officers

1 GS-PL Validation Assistant

2 GS-OL Processing Clerks

3 P-3 Evaluation Officers

1 P-2 Evaluation Officer

2 GS-OL Data Processing Clerks

1 P-5 Head of Confidentiality Section

2 P-4 Confidentiality Officers

2 P-3 Confidentiality Officers

1 P-2 Confidentiality Officer

1 GS-OL Secretary

Policy and Evaluation Branch

1 P-3 Policy Officer

1 GS-OL Secretary

5 P-4 Verification Officers

2 GS-OL Secretaries

Equipment Store

1 GS-PL Storage Specialist

OPCW Laboratory

1 P-2 Analytical Assistant

1 GS-OL Laboratory Technician

1 GS-OL Technician

Inspectorate

1 D-1 Director of the Inspectorate

1 P-4 Assistant to the Director of the Inspectorate

1 GS-OL Secretary

Operations Centre

1 P-5 Head of Operations Centre

3 P-4 Mission Planning Coordinators

2 P-3 Communications Officers

2 P-3 Movements Officers

2 P-3 Logistics Officers

10 Documentation Clerks

Total posts created in Phase II 67

Total posts listed 68

Additional New Posts (eight)

The Health and Safety Office (four)

3.6.4 The proposal is to establish the Health and Safety Office with the structure recommended by the Expert Group on Safety Procedures and approved by Working Group B at the Fifth Session of the Commission (paragraph 7.4 of PC-V/B/10), adjusted to take into account the evolving requirements of the Commission. Thus the recommended structure of 13 will be reduced to 11. One of the additional four posts requested in Phase II - GS-OL Clerk (Data Processing) - will be created by transferring an approved 1994 Phase II GS-OL position from the Information Validation Section in the Declarations and Confidentiality Branch to the Health and Safety Office. Therefore, the net increase will amount to three new posts. The following posts, including the transferred GS-OL post, will need to be created:

(a) Occupational Hygienist (P-4)

The tasks of this officer will include carrying out of measurements of hazards on inspections to assess compliance with the OPCW exposure standards for inspectors. The person will be expected to be able to work effectively immediately on EIF. In order to do this the sophisticated occupational hygiene equipment (once purchased) will have to be properly calibrated and tested. Thus the requirement is to activate this post at EIF minus 3 months to allow time for this.

Dfl. 105,175

(b) Nurse (GS-OL)

The Nurse will provide support to the medical officer on clinical matters. The person's duties will include assisting with routine medical examinations, carrying out vaccinations, maintaining vaccination records, updating information on vaccination requirements for different countries, and providing basic first aid. The person will have to give vaccinations to the trainees who will become inspectors at EIF. To take proper effect, vaccinations will have to be given to inspectors well before EIF. This person must be engaged at EIF- 4 months, i.e. before the start of Module 3 training. Some of the vaccinations required for some countries are not readily available either in Dutch clinics or in the country of recruitment of individual inspector trainee candidates. It is thus important that the OPCW has the in-house ability to give whatever vaccinations are deemed necessary. The occupant of the post will also provide support to the Senior Medical Officer on occupational health matters for OPCW staff and inspectors. These duties will include assisting with occupational health examinations and counselling, biological monitoring, maintenance of standards and training.

Dfl. 25,010

(c) Data Processing Clerk (GS-OL) (transferred from Declarations and Confidentiality Branch)

The Data Processing Clerk will assist the Safety Officer Information and other professional officers of the Health and Safety Office in maintaining the occupational hazard database and other databases, and will provide other staff members of the Health and Safety Office with appropriate training related to the database. The person's duties will include input of data from electronic and other sources, cross-referencing of data, and retrieval of data on request.

Dfl. 8,430

(d) Technical Assistant (GS-OL)

The Technical Assistant will assist the Occupational Hygienist in carrying out workplace hazard measurements. The person's duties will include calibration and maintenance of occupational hygiene equipment and the setting up for and conduct of work place measurements, all under the supervisions of the Occupation Hygienist.

Dfl. 8,430

OPCW Laboratory (one)

(e) Analytical Chemist (P-3)

The Analytical Chemist will carry out analytical functions in the OPCW Laboratory using various analytical instrumental techniques, supervise sample handling and sample preparation, check and monitor sample analysis results carried out by designated laboratories, and supervise the QA/QC regime in designated laboratories.

Dfl.71,650

Equipment Store (three)

(f) 1 Storage Specialist (GS-PL)

(g) 2 Storage Specialists (GS-OL)

In view of the requirement to procure all the inspection equipment by the start of Module 2 training, it will be necessary to have the Equipment Store operational by EIF-4 months. These three posts will therefore be required at EIF-4 months. Three more Storage Specialists (GS-OL) will be required at EIF.

Dfl. 81,150

Posts eliminated (seven)

3.6.5 To offset the increases above, it is recommended that, in addition to the two Phase I posts eliminated in the training section (paragraph 3.6.2 above), the following five posts in the staffing structure contained in the 1994 Budget be eliminated: Analytical Assistant (P-2); Laboratory Technician (GS-OL); GS-OL Data Processing Clerk (Information Processing Section); P-2 Validation Officer (Information Validation Section); and GS-OL Data Processing Clerk (Information Validation Section) (transfer to the Health and Safety Office).

Part II other appropriations

3.7 Part II other appropriations consist of four subheadings; Training, Operations and Planning Centre, Inspection equipment, and Health and safety.

Training: inspectors and selected Secretariat staff

Inspector resources

The Inspectorate required to carry out the projected inspection tasks at EIF is 163. The Inspectorate will initially consist of 140 inspectors/inspection assistants, 20 Operations and Planning Centre personnel and 3 directorate office staff. It is estimated that an additional 71 more inspectors/inspection assistants will be needed by EIF+180 days, for a total Inspectorate staff of 234. It is expected that this estimated number will be reviewed based on experience and on more specific information concerning the number of facilities subject to inspection. The following table provides information on the hiring of inspectors. The tables covering the recruitment of staff in the Office of the Director of the Inspectorate and the Operations and Planning Centre (23 staff) are contained in the staffing tables for Phase II of 1995 budget.

Hiring of Inspectors

(Days before and after EIF)

  GRADES    -180     -90      -30      EIF      +30      +60      +180     +360     
   P-5      -        -        -        16       16       16       21       21       
   P-4      73       73       73       48       83       83       77       77       
   P-3      80       80       80       71       116      116      108      108      
    GS      7        7        7        5        5        5        5        5        
  TOTAL     160      160      160      140      220      220      211      211

3.7.1 Suitably qualified OPCW staff, particularly in the Verification Division, may be designated as inspectors/inspection assistants to enable them to participate as required in inspections, to help deal with peak or unexpected inspection loads created, and to enhance their practical understanding of the verification process.

Inspector training

3.7.2 The Secretariat will be responsible for the training of inspector/inspection assistant candidates and for selecting trainees from candidates offered by Member States.

3.7.3 The detailed assumptions and projections for training are set out in Attachment 2 and result in the following cost estimate.

Total Dfl. 13,000,000

Operations and Planning Centre

3.7.4 The OPCW Operations and Planning Centre will be established at the beginning of Part II with the minimum staff necessary to provide the necessary planning as well as the operational and logistical support for inspector/inspection assistant candidates undergoing training world-wide. The Centre will initially operate using telecommunications and personal computer equipment available from within existing Secretariat assets. It will operate during normal Secretariat working hours until EIF.

3.7.5 At EIF, the Centre will begin to operate on a 24 hour per day basis, with three eight-hour shifts, 7 days a week. When the Centre is fully manned and operational, its principal functions will be: to assist, with inspection team leaders and other appropriate Secretariat staff, in short term inspection planning; to oversee all operational and logistical preparations for each inspection; to oversee the conduct of all inspections in the field; to debrief inspection teams on the operational aspects of inspections; and to participate in Secretariat evaluations of inspection aims and efficiency.

3.7.6 The acquisition cycle for the approved Centre equipment will begin at EIF- 6 months. The objective is to have the equipment installed and operational in the Centre no later than EIF+30 days. The list of mission essential equipment needed to operate the Centre is provided below.

List Of Mission-Essential Equipment For The Operations and Planning Centre

    Recommended Equipment        Unit Cost       Number     Total Base Cost    
                                    Dfl.                          Dfl.         
SATCOM Terminals                   85,000            1           85,000        
Geographic World Time Display       2,300            1             2,300       
Plexiglas Information Display       3,800            1             3,800       
Classified Material                 2,500            4            10,000       
Containers (4 drawer)                                                          
Cellular Phones                     2,000            4             8,000       
Telephone Pagers                       500         15              7,500

* Additional telecommunications as well as personal computer and reproduction equipment required for Centre operations have been identified and provided to Information Systems Branch for inclusion into their budget. These items will be purchased or leased for use within the Operations and Planning Centre.

Base cost (1994 prices) Dfl. 116,600

1995 inflation (3%) Dfl. 3,500

Base cost plus 3% inflation Dfl. 120,100

Cost of shipping, delivery and installation Dfl. 18,000

Total estimated cost Dfl. 138,100

Inspection equipment

3.7.7 The equipment procured for on-site inspections will be the minimum necessary to carry out effective verification of compliance with the Convention. Within this overall framework, equipment procured for use in complementary verification will be limited to protective and safety and appropriate recording equipment necessary to enable the inspectors/inspection assistants to function with full efficiency in conjunction with bilateral inspection teams.

3.7.8 Equipment needed for the efficient conduct of training courses and inspection activities in the period from EIF to EIF+6 months must be delivered and available at EIF, or at the latest at EIF+1 month. Procurement of this equipment will proceed based on the already approved procurement cycle. The Secretariat consequently will require funding authority to begin procurement of the additional numbers of inspection equipment in Phase II.

3.7.9 The requirement for additional numbers of approved inspection equipment, referred to above, to be procured in Phase II for delivery at EIF or at the latest at EIF + 1 month - which is in addition to the amount requested for Phase 1 - is set out in detail in Table 3.8. The total budget requested for the procurement of inspection equipment in Phase II is as follows:

Inspection Equipment

Basic cost at 1994 prices Dfl. 2,161,500

3% inflation Dfl 64,900

Basic cost (Table 3.8) plus 3% inflation Dfl. 2,226,400

Shipping, delivery and installation (15 %) Dfl. 334,000

Running costs (10 % for six months) Dfl. 111,300

Development costs (6 %) Dfl. 133,600

Total Dfl. 2,805,300

Health and safety training requirements

3.7.10 An appropriation required by the Health and Safety Office in Phase II for medical costs is included in the budget for the Personnel Branch.

ATTACHMENT 1

Detailed Assumptions For Verification Activities