WORLD TRADE  
ORGANIZATION  WT/BFA/W/145 
20 July 2006 
 
 (06-3497) 
Committee on Budget, Finance and Administration  
  
 
 
ADDRESSING THE FUTURE BUILDING NEEDS OF THE WTO 
 
 
I. INTRODUCTION 
1. The purpose of the present document is to ex amine the current status of the building 
arrangements for the WTO, to assess the future bu ilding needs of the WTO and to consider the 
respective advantages and disadvantages of various op tions for addressing those needs.  These options 
include:  
(a) the permanent establishment of the WTO on two sites, and 
(b) the regrouping of the operations of the WTO on a single site. 
The document also considers the interim measu res which will have to be taken pending the 
implementation of options (a) or (b). 
II. CURRENT SITUATION 
A. CENTRE WILLIAM RAPPARD  
2. The bulk of the Organization's activities and staff is currently concentrated in the CWR which 
is 80 years old this year. In addition, there is a sep arate conference room placed free of charge at the 
disposal of the WTO on the site by the Swiss authorities. 
3. The CWR also accommodates, on a temporary basis,  the library of the Graduate Institute of 
International Studies (IUHEI), pending the removal of that library to a permanent site.  The library 
occupies a net surface area of 3,000 m2 in the sout h wing of the CWR and pays an annual rent to the 
WTO of  CHF 89,000. 
4. Under the terms of the Infrastructure Contract between the Swiss Confederation, the Republic 
and Canton of Geneva, the FIPOI and the WTO (WT/GC/2), the Swiss authorities undertook to 
provide free of charge to the WTO a car park of at least 400 spaces. 
5. The same Contract provides that, should the WTO cease to use the CWR, the FIPOI would 
buy back the building for a price of CHF 56 million,1 not indexed and without interest, but together 
with compensation of CHF 4 million for investments already made at the date of signature of the 
Contract, plus the value of any further investments made in the future. 
                                                      
1 provided that the WTO relocates to a nother site in the Canton of Geneva. WT/BFA/W/145 
Page 2  
 
  B. R
UE ROTHSCHILD ANNEXE  
6. Owing to the continued presence of the IUHE I Library on the CWR premises, the Swiss 
authorities have agreed to provide, on a rent-free ba sis, an annexe to accommodate the WTO staff and 
services which could otherwise be housed in the CWR.   That annexe was originally located, for a 
period from February 2000 to December 2001, in the Avenue Blanc immediately opposite the CWR 
where there was space for 70 staff.  Since January  2002, the annexe has been situated in the 
rue Rothschild, approximately 1.5 km from the CWR, where there is space for 100 staff.  A total of 
96 parking spaces are rented in the adjoining area for staff working at rue Rothschild.  
C. AVENUE DE FRANCE PROJECT  
7. Further to contacts between the Host Government  and the WTO with regard to future office 
space needs for the WTO, the CBFA was informed in 2001 that the Swiss authorities had proposed 
that the WTO construct an annexe  on land which was available on the Avenue de France.  The land 
would be made available free of charge and the cost  of construction financed by an interest-free loan 
of CHF 50 million reimbursable over 50 years after which the WTO could either purchase the land, 
extend the lease thereon or sell the building. 
8. In December 2001 the General Council signalled its agreement to the project and to the 
funding arrangements and authorized the Director-Gen eral to launch the project study.  In December 
2003 the General Council gave the go-ahead for the "G olden Eye" project within the envelope of 
CHF 50 million.  In the same month, an agreem ent was signed with the Fondation des immeubles 
pour les organisations internationales (FIPOI) fo r an interest-free loan of CHF 5 million for the 
project design work. 
9. In July 2005, the General Council agreed to request the Swiss authorities to increase the 
interest-free loan of CHF 50 million to CHF 60 million reimbursable over 50 years, as a result of changes in project design and inflation movement s.  The process of parliamentary approval was 
initiated by the Swiss authorities but was suspende d in May 2006 pending clarification of the long-
term plans of the Organization.  The tendering procedure for the building was launched in 
September 2005 and bids were received by the clos ing date of 20 December 2005.  The selection 
process has also been suspended pending clarificati on of the longer-term situation, and bidders have 
agreed to extend the validity of their offers to 31 December 2006. 
10. Following the increase in the projected co st of the building from CHF 50 million to 
CHF 60 million, a request was made to increase the FIPOI loan from CHF 5 million to CHF 6 million, 
but it was not possible to secure that increase.  Costs incurred and commitments made to date in 
respect of the preparatory work total CHF 5'500' 000. Under the terms of the preliminary loan 
agreement, if the construction loan is refused or not obtained by 31 December 2006, the costs incurred 
under the loan will be covered by the Swiss au thorities, and the WTO will not be required to 
reimburse the FIPOI loan.  Otherwise, all such costs will have to be borne by the WTO. 
III. FUTURE BUILDING NEEDS 
11. Having examined the current situation and plans as well as forecasts, the Director-General is 
of the opinion that the interests of both Members and the Secretariat would best be served by housing the entire Organization under one roof.  Consequently , in order to assess the future building needs of 
the WTO and determine the most cost-effective way to manage the transition from the current 
situation to the long-term goal of a single site, it is necessary to make some predictions regarding the 
evolution of the workload and staffing of the Organization.    WT/BFA/W/145 
 Page 3 
 
 
  12. Under a first scenario ("Space Scenario 1"), si nce the WTO has now been in existence for 
more than 11 years, the average trend in growth of 3 per cent observed over that period is considered 
as one possible basis for such projections.  The to tal staff employed by the WTO, including regular, 
fixed-term and short-term staff as well as interns,  would thus increase from 850 today to 1,110 in 
2016 and 1,500 in 2025. 
13. The demand for meeting rooms has increased at an average annual rate of 22 per cent over the 
first 11 years of existence of the WTO, and it is e xpected that the demand will continue to increase in 
the future.  The type and number of meeting rooms required to accommodate these meetings will 
depend on the nature and size of the meetings.  At this stage, it is assumed that the demand will 
continue to evolve as it has since the inception of the WTO. For the Appellate Body, demand is 
already proving difficult to manage.  
14. Space requirements for other facilities, such as training, library/archives, catering and 
parking, will increase in the same propor tions as the staffing and meeting rooms. 
15. The overall future space requirements in Space S cenario 1 are summarized  in the following 
table.  They have been shared with FIPOI whic h has confirmed their validity and consistency with 
similar projections made by other inte rgovernmental and multinational entities. WT/BFA/W/145 
Page 4  
 
  Space Scenario 1
 
3%  until 2025 
 
    2006 2025 
    units area  units area  
1 ADMINISTRATION         
1.1 work stations 850 10,357 m2 1500 18,000 m2 
1.2 auxiliar y spaces 5,922 m2 7,500 m2 
   NET AREA    16,279 m2   25,500 m2 
2 CONFERENCE CENTRE          
2.1 Hall / rece ption  184 m2 1 1,200 m2 
2.2 Meetin g room 510 places with interpreters 1 2,242 m2   
2.3 Meetin g room 700 places with interprete rs 1 3,400 m2 
2.4 Meetin g room 150 places with interpreters 3 752 m2 4 3,000 m2 
2.5 Meetin g room 50 places 4 266 m2 10 1,000 m2 
2.6 Meetin g room 25 places 2 81 m2 10 500 m2 
   NET AREA    3,525 m2   9,100 m2 
3 COMMON ACTIVITIES & SERVICES         
3.1 Lobb y / rece ption 1 114 m2 1 950 m2 
3.2 Restaurant 300 places / kitchen 1 910 m2 1 750 m2 
3.3 Librar y 1 992 m2 1 1,000 m2 
3.4 Staff activities 1 59 m2 1 300 m2 
3.5 Infirmar y / rest roo m 1 117 m2 2 100 m2 
3.6 Print shop 1 796 m2 1 800 m2 
3.7 Ban k 1 111 m2 1 150 m2 
3.8 Bookshop 1 86 m2 1 150 m2 
3.9 Travel A gency  1 68 m2 1 150 m2 
3.10 Miscellaneous 1 126 m2 1 100 m2 
   NET AREA    3,379 m2   4,450 m2 
4 TRAINING ACTIVITIES          
4.1 Lobb y / rece ption 1 100 m2 
4.2 Trainin g rooms 4 376 m2 3 550 m2 
4.3 Stud y areas / c yber corne r 1 34 m2 1 150 m2 
4.4 Distance trainin g facilit y 0 0 m2 1 50m2 
   NET AREA    410 m2   850 m2 
5 TECHNICAL ROOMS          
5.1 Archives 595 m2 3,750 m2 
5.2 Technical rooms 2,968 m2 6,000 m2 
   NET AREA    3,563 m2   9,750 m2 
6 SECURITY &  ACCREDITATION         
6.1 Rece ption & control 1 86 m2 1 120 m2 
6.2 Accreditation 1 15 m2 1 80 m2 
   NET AREA    101 m2   200 m2 
  TOTAL NET AREA BUILDING   27,257 m2   48,850 m2 
7 PARKING         
7.1 Visitors / deliveries 10 200 m2 50 950 m2 
7.2 Dele gations   181 2,300 m2 300 5,700 m2 
7.3 Staff 420 5,250 m2 700 13,300 m2 
7.4 Bic ycles/motorbikes 75 150 m2 200 800 m2 
  TOTAL NET AREA PARKING   7,900 m2   20,750 m2 
          
  TOTAL NET AREA    35,157 m2   70,600 m2 
  WT/BFA/W/145 
 Page 5 
 
 
  16. Under a second scenario ("Space Scenario 2"), it is assumed that the number of staff  will 
continue to increase at a rate of 1 per cent for the next twenty years.  The total staff employed by the 
WTO, including regular, fixed-term and short-term staff as well as interns, would thus increase from 
850 today to 1065 in 2025. 
17. All other assumptions are adjusted in the same proportions in relation to Space Scenario 1.  
The overall future space requirements in Space Scen ario 2 are summarized in the following table. WT/BFA/W/145 
Page 6  
 
  Space Scenario 2
 
(1 per cent to 2025) 
 
   2006 2025 
    units area sqm units area sqm 
1 ADMINISTRATION         
1.1 work stations 850 10,357 m2 1065 12,780 m2 
1.2 auxiliar y spaces 5,922 m2 5,325 m2 
   NET AREA    16,279 m2   18,105 m2 
2 CONFERENCE CENTRE          
2.1 Hall / rece ption  184 m2 1 1,200 m2 
2.2 Meetin g room 510 places with interpreters 1 2,242 m2   
2.3 Meetin g room 700 places with in terpreters 0 1 3,400 m2 
2.4 Meetin g room 150 places with interpreters 3 752 m2 4 3,000 m2 
2.5 Meetin g room 50 places 4 266 m2 10 1,000 m2 
2.6 Meetin g room 25 places 2 81 m2 10 500 m2 
   NET AREA    3,525 m2   9,100 m2 
3 COMMON ACTIVITIES & SERVICES         
3.1 Lobb y / rece ption 1 114 m2 1 770 m2 
3.2 Restaurant 250 places / kitchen 1 910 m2 1 625 m2 
3.3 Librar y 1 992 m2 1 685 m2 
3.4 Staff activities 1 59 m2 1 200 m2 
3.5 Infirmar y / rest roo m 1 117 m2 2 80 m2 
3.6 Print shop 1 796 m2 1 800 m2 
3.7 Ban k 1 111 m2 1 120 m2 
3.8 Bookshop 1 86 m2 1 120 m2 
3.9 Travel A gency  1 68 m2 1 120 m2 
3.10 Miscellaneous 1 126 m2 1 80 m2 
   NET AREA    3,379 m2   3,600 m2 
4 TRAINING ACTIVITIES          
4.1 Lobb y / rece ption 1 100 m2 
4.2 Trainin g rooms 4 376 m2 3 360 m2 
4.3 Stud y areas / c yber corne r 1 34 m2 1 90 m2 
4.4 Distance learnin g facilit y 0 0m2 1 50m2 
   NET AREA    410 m2   600 m2 
5 TECHNICAL ROOMS          
5.1 Archives 595 m2 2,560 m2 
5.2 Technical rooms 2,968 m2 4,100 m2 
   NET AREA    3,563 m2   6,660 m2 
6 SECURITY &  ACCREDITATION         
6.1 Rece ption & con trol 1 86 m2 1 90 m2 
6.2 Accreditation 1 15 m2 1 70 m2 
   NET AREA    101 m2   160 m2 
  TOTAL NET AREA BUILDING   27,257 m2   38,225 m2 
7 PARKING         
7.1 Visitors / deliveries 10 200 m2 45 665 m2 
7.2 Dele gations   181 2,300 m2 280 5,320 m2 
7.3 S taff 420 5,250 m2 650 9,500 m2 
7.4 Bikes /motors 75 150 m2 60 560 m2 
  TOTAL NET AREA PARKING   7,900 m2   16,045 m2 
          
  TOTAL NET AREA    35,157 m2    54,270 m2  WT/BFA/W/145 
 Page 7 
 
 
   
Options for the long term  
 18. In considering the options for the future and th e best way to address the future building needs 
of the Organization, it is necessary to bear in mind that the CWR is now 80 years old, that it is full to 
capacity and that it is not technically feasible to cons ider adding further buildings to a site which is 
already oversaturated.  Furthermore, the rue Rothschild annexe suffers from certain major 
deficiencies, notably with respect to security and safety, which make it urgently necessary to find an 
alternative location. 
Option 1 – permanent establishment on two sites
 
 
19. One possible option is to go ah ead with the permanent establishment of the WTO on two sites 
through the construction of the Annexe on the Avenue  de France.  That build ing is currently designed 
to accommodate 450 staff and would have three meeting rooms of 60 seats, 80 seats and 120 seats, respectively.  The building also includes 60 parking spaces, together with a drop-off zone for persons 
attending meetings or visiting staff in the building.   
20. That building, which would be completed in 2009 if the decision to go ahead with the project 
were taken this year, would offer the advantage of a modern, state-of-the-art facility with office and 
meeting room space sufficient to accommodate the n eeds of the WTO in terms of offices up to 2018 
according to the predictions in paragraph 12, above , or beyond 2025 according to the predictions in 
paragraph 16, above. Apart from the impact that sp litting the Organization in two would have on staff 
morale and productivity, the building also presents certain, significant disadvantages, notably the lack 
of sufficient parking space, difficulties of acces s and communication with the CWR building and, 
more importantly, the need to duplicate resour ces such as document production, cafeteria, mail, 
medical and other support services which is considered  further below.  For the smaller delegations in 
particular, moving from one site to the other to attend meetings would be especially awkward.   
21. In order to operate effectively on two sit es, it would be necessary to establish a second 
document production and distribution facility on a smal ler scale on the Avenue de France site to 
handle urgent requests emanating from clients in that  building.  Similarly, additional support would be 
needed for the conference rooms on the Avenue de France site, as well as for the maintenance of a 
"forward echelon" translation unit on the CWR site on the assumption that the bulk of the translation resources would be moved to the Avenue de France.   Further examples of additional resources which 
would be needed if the Organization were split in two would include transport services, a second mail 
room, a second medical unit, a second building mainte nance unit, and a second IT support unit.  These 
additional resources would not be required if the WTO were accommodated on a single site (see 
option 2 below) where economies of scale could be  achieved.  The following table summarizes the 
differences in human resource requirements between options 1 and 2.  Leaving aside the non-staff 
costs (furniture, equipment, utility, costs, etc.) wh ich are difficult to assess at the present stage, it is 
estimated that the  additional resources require d for option 1 would account for 8 staff/years, 
corresponding to approximately CHF 1,000,000 per y ear at a standard cost per staff member of 
CHF 125,000. WT/BFA/W/145 
Page 8  
 
   
Comparison of additional human resour ce requirements under Options 1 and 2
 
 
Activity Option 1 Option 2 
Document production and distribution 5 3 
Mail and distribution 2 1 
Medical service 2 1 
Informatics 4 2 
Technical services 4 2 
Total 17 9 
  
Option 2 – Regrouping on a single site
 
 22. The second option would consist in identifying a new site for the WTO where all the 
operations could be regrouped in a single area whic h would be sufficiently large to accommodate the 
needs of the Organization in the longer term.  Th is option would ideally combine the advantages of 
option 1, above, with a solution to its disadvantages.  The extent to which it is possible to achieve this 
solution will obviously depend on its affordability and on the possibility of finding a site compatible 
with the space, access and related requirements set by the WTO. 
23. As indicated under Space Scenario 1, above, the total space requirements for the WTO in 
2025 are estimated to be approximately 70,000 m2, in cluding 20,000 m2 for parking areas.  At current 
prices, the total cost of the building would be approximately CHF 250 million at today's prices.  
Under Space Scenario 2, the total cost would be  reduced to CHF 210 million.  The lead time to 
construct such a building is estimated at approximate ly 10-12 years, taking into account also the time 
needed to obtain planning permission and building permission, to select a building design and to 
award the necessary contracts. 
24. Whether an appropriate site can be found in the Geneva region is a matter currently under 
examination by the Swiss authorities.  The Secr etariat is awaiting the results of that search. 
Managing the interim period
 
 25. As indicated in paragraphs 20 and 23, above, op tions 1 and 2 would not be available before 
2009 and 2016-2018, respectively.  Furthermore, as stat ed in paragraph 18, above, there is an urgent 
need to identify an alternative to the rue Rothschild annexe.  Con sequently, whichever the choice of 
option for the longer term, a solution has to be found  to bridge the gap between the current situation 
and the completion of that option.  
26. One possible solution would be to take over one of the two buildings to be vacated by Serono 
later this year when it moves into its new h eadquarters.  One building has space to accommodate 
approximately 400 staff with 235 parking spaces,  and the other can accommodate approximately 
150 staff with 51 parking spaces.  Since only the la rger  building offers enough space to accommodate 
the needs of the WTO during the interim period, only that building will be retained for further 
consideration in this paper.  The rent currently ch arged for that building is CHF 4,630,476 per year, to 
be compared with a rent (borne by the Swiss authorities) of CHF 915,000 for the Rue Rothschild 
annexe. The building is also offered for sale at a pr ice of CHF 67 million.  The building is sufficiently 
close to the CWR site not to require the duplication of resources to the same extent as the Avenue de 
France site.  It is assumed that the Swiss authoriti es would continue to offset the rental cost in 
proportion to the area occupied by the IUHEI Library in the CWR.  In addition, some preparatory  WT/BFA/W/145 
 Page 9 
 
 
  work would have to be undertaken on the build ing, the cost of which would require a detailed 
inspection of the premises.    
27. Another possible solution would be to proceed in two stages from option 1 to option 2. Since 
option 1 would not be available before 2009, a furthe r, interim solution would have to be found to the 
urgent safety and security problems in rue Rothschild, necessitating two major removals in the space 
of three years.  
28. An analysis has been made in terms of net present value (NPV) of the merits of these two 
possible solutions. For the purposes of this analysis, the following assumptions are made: 
- a discount rate for future costs of 2 per cent, 
- an annual rental for the Serono building of CHF 3 million, 
- an initial preparation cost for the Serono building which is assumed to be CHF 8 
million, subject to a detailed inspection of the premises, 
- a minimal duplication of resources in the Ser ono building equivalent to an annual cost 
of CHF 0.5 million, 
- a real estate value appreciation rate of 2 per cent. 
29. The analysis shows that the rental of the Se rono building during the interim period to 2018 is 
the least attractive solution, with an NPV of CHF 40.36 million. Renting Serono and then moving to the Avenue de France Annexe represents an NPV of CHF 14.48 million. Purchasing the Serono 
building as an interim solution for the period up to 2018 is the most interesting option as it offers an 
NPV of CHF 1 million.  
30. Another factor to be considered in managing the interim period and assessing the merits of the 
various options for addressing the future building ne eds of the WTO is the fact that the CWR is in 
need of major renovation.  Completed in 1926, the l ast major renovation took place in the mid 1970's.  
Whether option 1 or option 2 is selected, work will ha ve to be undertaken over the next few years in 
order to renovate such items as electricity and pl umbing, roofing, ventilation systems, and safety and 
security infrastructures.  The cost of a full-scale renovation has been estimated at CHF 40 million by 
FIPOI and would have to be incurred in the case of option 1, where the CWR would remain the 
headquarters over the longer term.  In the case of  option 2, a lighter renovation programme costing 
approximately CHF 10 million could be envisaged to  cover the period up to the delivery of the new 
building.  In both cases, the cost would ha ve to be borne by the Organization. 
 
Cost implications of the long-term building options
 
 
31. In this section, a comparison is made of the cost implications of the long-term building 
options described above.  This comparison is made  in terms both of NPV and of current costs. WT/BFA/W/145 
Page 10  
 
  32. For option 1 – permanent establishment on two sites – the result is as follows: 
 
 NPV  
 (CHF) Current annual 
cost  (CHF) 
(in 2007) Current 
annual cost 
(CHF) 
 (in 2008) Current annual 
cost 
(CHF) 
 (beyond 2008) 
Serono preparation cost 8,000,000 8,000,000   
Serono rental  5,941,176 3,000,000 3,000,000  
Serono duplication resources  990,196 500,000 500,000  
Duplication of resources in Avenue de France 17,311,812   1,000,000 
Reimbursement of loan to cover 
CWR improvement cost  15,433,763 800,000 800,000 800,000 
Reimbursement of loan of 
CHF 60 million for Avenue de France project 20,774,174   1,200,000 
Total cost  68,451,122 12,300,000 4,300,000 3,000,000 
Total PV remaining debt 33,821,649    
 
 
33. For option 2 – regrouping on a single site – the result is as follows: 
 
 NPV 
 (CHF) Current annual 
cost  (CHF) 
(in 2007) Current 
annual cost 
(CHF)        
(2008-2018) Current annual 
cost (CHF) 
(beyond 2018)     
Serono preparation cost 8,000,000 8,000,000   
Duplication of resources in 
Serono 5,393,424 500,000 500,000  
Reimbursement of loan to cover 
CWR improvement cost 8,149,918 200,000 200,000  
Reimbursement of loan to cover 
cost of purchasing Serono + new 
building 99,909,211 1,340,000 1,340,000 
 5,326,616  
Less selling price of Serono + 
CWR (122,194,522)    
Total   ( 741,970) 10,040,000 2,040,000 5,326,616 
Total PV remaining debt 128,360,381    
 
34. The analysis shows that option 2 (regrouping on a single site in Space Scenario 2 after 
purchasing the Serono building as the interim solution) is the more attractive option, with an NPV of 
CHF 742,000, as compared to an NPV of CHF - 68 million in the case of option 1 (establishment on two sites after renting the Serono building up to 2009). 
35. In conclusion, leaving aside the efficiency consid erations of a single site for the operations of 
the Organization, there are also clear cost argument s in favour of such a solution, as opposed to the 
division of the Organization on two separate, and rather remote, sites.   
__________