UN wants $1.3 billion US loan for renovations

The United Nations wants an interest-free loan of up to $1

The United Nations wants an interest-free loan of up to $1.3 billion from the United States as part of an ambitious plan to renovate its Manhattan headquarters building, UN officials said today.

UN Secretary-General Kofi Annan discussed the plan with US President George W. Bush during a visit to Washington on November 13th, and UN officials last week began rounding up support for it at the State Department and in the US Congress, which would have to approve any loan, the officials said.

Before a request can be formally submitted to the US government, the plan must first be approved by the 191-nation UN General Assembly, which is expected to vote on it in December.

The United Nations has been talking for more than two years about its Capital Master Plan for renovating its aging landmark headquarters compound, completed in 1952.

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But it has never publicly said it hoped to finance the entire project, estimated to cost about $1.3 billion, with an interest-free loan from Washington.

The desired arrangement is tinged with irony as until recently the United Nations claimed the United States owed it well over $1 billion in unpaid dues.

While that has now largely been settled, it still owes over $800 million, according to the latest UN figures, partially disputed by Washington.