RESTRICTED  
  
WT/BFA/W/346  
 
21 November 2014  
(14-6795)  Page: 1/2  
Committee on Budget, Finance and Administration   
 
 BUILDING MAINTENANCE FUND  
1  INTRODUCTION 1.1.  This document proposes the establishment of a building maintenance fund. 
1.2.  The major project to create a single-site WTO was launched in 2008. The project is reaching 
its end in 2014 with the completion of the security perimeter. The century old Centre William Rappard underwent an extensive renovation. The atrium and the south courtyard conference 
rooms were added. A new administrative building has been erected to house more than 200 staff 
previously located off site and includes a new and enlarged restaurant. An underground parking with 200 spaces for the primary use of delegates has been added on site. Another underground parking with 400 spaces has been built nearby for the primary use of WTO personnel. Finally, a 
security perimeter with enhanced landscaping has been erected around the WTO to meet the 
current security standards applicable to international organizations.  
1.3.  It is estimated that some 190 MCHF have been invested on WTO facilities since 2008. The 
bulk of it was financed by the Swiss authorities. WTO Members financed some 18 MCHF through 
the Members' Transition Operating Fund that has been recently closed
1 and agreed to reimburse 
over a 50 years period, a 60 MCHF interest free loan provided by the Swiss authorities. 
1.4.  The Secretariat negotiated a revision of the Infrastructure contract with the Swiss authorities 
establishing the different responsibilities related to the real estate occupied by the WTO. This 
contract covers areas such as ownership, use and maintenance. The Committee recommended and the General Council approved the proposed amendments to the Infrastructure Contract
2 in July 
2013. The new Infrastructure contract was signed and entered into force in August 2013. 
1.5.  The WTO has become the owner of the Centre William Rappard and the new administrative 
building. This ownership entails a requirement to ensure the adequate maintenance of the 
buildings over the long term. More specifically the WTO agreed: to maintain in a good state of 
repair and cleanliness the structures and fixed inst allations on the plots subject to the surface right 
and to protect the structure of the buildings and th eir external appearance (facades and roofs); to 
ensure the maintenance of the said structures and installations and that of any out-buildings.3 
1.6.  The Swiss authorities through the FIPOI continue to provide an annual provision of 
CHF 1 million to assist for the maintenance of the Centre William Rappard. This provision is directly managed by FIPOI and does not come into the accounts of the WTO. It also cannot be carried 
forward if not used and is restricted to the Cent re William Rappard. It cannot be used for any other 
building.  
2  PROPOSAL 
2.1.  The Secretariat has previously indicated, including in the 2014-2015 Budget Proposals, that it 
would come forward and propose the establishment a Building Maintenance Fund.  
2.2.  The main objective of the Building Maintena nce Fund would be to maintain the overall value 
and operability of the property through regular ma intenance. As most of the WTO facilities are 
either new or recently renovated, the level of maintenance expenditure should remain stable in the 
                                               
1 WT/BFA/W/341. 
2 WT/BFA/W/298.    
3 Articles 4.1 and 5.1- WT/BFA/W/298. WT/BFA/W/346  
 
- 2 - 
 
  short term. However, the level of maintenance expenditure is expected to fluctuate more 
importantly and grow in the medium term as the buildings start to depreciate and deteriorate due 
to aging and use. The level of maintenance expenditure could fluctuate quite importantly from a year to another depending on the work to be engaged. For example, the replacement of the 
heating furnace, the renovation of lifts or the roof could rapidly engage significant funds. 
2.3.  In order to absorb annual variances in maintenance expenditure and in order to build a small 
reserve for larger expenditure, the Secretariat proposes to establish a Building Maintenance Fund 
in the same spirit as the Appellate Body Operating Fund that is in place to absorb variations in the 
level of expenditure connected to the Appellate Body.  
2.4.  The purpose of the Building Maintenance Fund would be restricted to the financing of ordinary 
and extraordinary maintenance costs of the WTO buildings and facilities. It would include 
improvements and enhancement works. 
2.5.  In the same way as the Appellate Body Op erating Fund, the Building Maintenance Fund could 
be funded by an annual allocation from the regula r budget of the WTO. The Secretariat would also 
provide a detailed report on the use and balance of the fund, including in the annual audited 
financial statements. 
2.6.   The proposal would be to create the Buil ding Maintenance Fund in the course of 2015. The 
first annual allocation of the regular budget would take place in 2016 for an amount of 1 MCHF. 
This amount would match the amount currently provided by the Swiss authorities and demonstrate the commitment of the WTO to take positive steps in complying with the maintenance requirements of the new Infrastructure contract. The current proposal would not be to increase the 
current budget of the WTO, but rather to shift ex isting related expenditure to the new fund. This 
would be cost neutral for the WTO budget in the first years.  
2.7.  In addition, the Building Maintenance Fund could also receive as an initial cash injection the 
closing balance of the Members' Transition  Operating Fund amounting to CHF 1,700,680
4 that has 
been recently released to the Surplus Account. 
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4 WT/BFA/W/341.