The aging United Nations headquarters overlooking New York's East River is set to undergo a $1 billion (¤730 million) makeover, the first-ever overhaul of the landmarked but leaking complex overlooking the East River. Alicia Barcena, U.N. undersecretary general for management, said the seven-year project will be conducted in three phases, with about 1,000 workers temporarily relocated to buildings in Manhattan and Queens during each phase. Work will begin in early 2008. For two years _ between 2009 and 2011 _ the General Assembly will be housed a block away from headquarters on East 46th Street. The U.N. Secretary-General will remain at headquarters but in temporary quarters. About 4,000 people work at the U.N. headquarters, which includes three buildings. «The signing of this agreement is a major step in making the U.N. headquarters a safer, healthier and more energy-efficient place for all of us who work here,» Barcena said at a news conference Friday. «It will make it safer for hundreds of thousands of tourists who visit every year.»