Legal costs from arbitration over the United Nations headquarters renovation reached $11.6 million by June 30, leaving further expenses to the regular budget, the United Nations said on Nov. 4.
The project's exhausted fund has left the dispute delaying its financial closure, Uruguay's delegate said for the Group of 77 and China. The United Nations published the account on Nov. 4 under the title “Apply Lessons Learned from Major UN Renovation Projects to Future Capital Improvement Plans, Speakers Urge as Fifth Committee Reviews Ongoing Construction Ventures”.
The Group put estimated additional legal expenses for the rest of the year at $830,000. It sought an updated account of spending, expected liabilities and proposed funding sources for 2026 and 2027.
Yacine Hamzaoui, acting director of the Programme Planning and Budget Division in the UN Department of Management Strategy, Policy and Compliance, said arbitration with the construction manager had entered its third phase. Hamzaoui said the regular budget approved for 2026 would cover that phase's legal expenses.
Delegates reviewing renovation projects in New York, Bangkok, Santiago, Nairobi, Addis Ababa and Geneva called for lessons from completed work to guide future construction. They also sought greater use of local expertise, workers and materials.
Singapore's representative, speaking for the Association of Southeast Asian Nations, said the Bangkok project showed the value of clear objectives, consultation with those involved and flexibility when unexpected problems arise. Singapore also called for managing risks and addressing problems before they add costs or cause delays.
Thailand's delegate said renovations at the Economic and Social Commission for Asia and the Pacific headquarters in Bangkok had improved earthquake resistance and efficiency.
Chile's delegate, speaking for Latin American and Caribbean countries, said the renovated Economic Commission for Latin America and the Caribbean headquarters in Santiago met earthquake and construction codes. Chile said the building was modern, safe and energy-efficient.
The pandemic, supply disruptions and unexpected soil conditions had required changes, delayed work and affected the budget, Chile's delegate said. The North Building nevertheless reached substantial completion in May 2025.
Switzerland's delegate said changes to the budget framework adopted by the General Assembly in June 2025 had delayed the Palais des Nations renovation in Geneva and increased contractual dispute risks. Switzerland called for matching the resources provided to the results member states expected.
Kenya's delegate said the government was working with the UN Secretariat on electricity, roads, water and other infrastructure supporting the Nairobi office. Kenya said these investments increased its ability to accommodate more functions and staff.
Kenya and Ethiopia's delegates called for fuller use of renovated facilities and efforts to attract intergovernmental meetings. Ethiopia's delegate said the government was working with Secretariat officials to complete renovations at Africa Hall in Addis Ababa.
