RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/88 
19 September 2006 
 (06-4464) 
Committee on Budget, Finance and Administration  
   
 
REPORT OF THE MEETING HELD ON 20 JULY 2006 
  
1. The WTO Committee on Budget, Finance and Administration met on 20 July 2006 under the 
chairmanship of Ambassador Juan Antonio March of  Spain.  The terms of reference and composition 
of the Committee are set out in document WT/L/ 44/Rev.1.  The agenda contained in document 
WTO/AIR/2869 was adopted. 
I. ADMINISTRATIVE UP-DATES AND PROG RESS REPORTS AS AT 30 JUNE 2006 
A. 
CASH SITUATION AND STATEMENT OF OUTSTANDING CONTRIBUTIONS  
B. CONTRIBUTIONS OF OBSERVER COUNTRIES TOWA RDS THE COST OF SERVICES PROVIDED BY 
THE SECRETARIAT – PROGRESS REPORT  
2. A member of the Secretariat presented the cash  situation, the statement of outstanding 
contributions from Members as at 30 June 2006, a nd a statement regarding the contributions of 
Observer countries towards the cost of services provide d by the Secretariat.  As at the reporting date, 
the total of funds available stood at CHF 82 milli on.  Contributions received from Members amounted 
to CHF 131.4 million for the current year and CHF 9 million for prior years, while those from 
Observers amounted to CHF 555,000 for the current year and CHF 135,000 for prior years.  Since the date of the report three Members (Panama, I ndonesia and Kenya) made payments.  The Working 
Capital Fund stood at CHF 9.3 million at 30 June  2006.  The Secretariat pointed out that seven 
Members (Chad, the Democratic Republic of the C ongo, Djibouti, Guinea, Guinea-Bissau, Niger and 
the Royal Kingdom of Cambodia) had still outsta nding advances to the Working Capital Fund 
amounting to CHF 204,000 as at 30 June 2006. 
3. In response to a question, a member of the Secretariat indicated that two Members in 
Category IV had approached the WTO with enquiries regarding the establishment of a possible instalment payment plan to regularize their financial situation vis-à-vis  the Organization.  If a Member 
in Category IV should present a reque st to approve such a plan, the matter would be brought before 
the Committee which may suspend the application of  administrative measures as long as the relevant 
Member fulfils the terms of the plan annually. 
C. 
HUMAN RESOURCES MATTERS  
4. A member of the Secretariat introduced document CRP(06)19 and informed the Committee 
that the Special Recruitment Exercise was successf ully completed at the end of June.  The staff 
concerned were offered and accepted their fi xed-term contracts effective 1 July 2006. 
5. It was also pointed out that the report cont ained information with regard to temporary 
positions funded from Temporary Assistance, Tem porary Assistance – Vacant Posts, and Extra-
Budgetary Funds (Programme Support Fund).  WT/BFA/88 
Page 2  
 
  6. The Committee took note of the various reports. 
D. 
STATUS OF EXTRA -BUDGETARY ACTIVITIES : 
i. Technical Assistance Activity as at 15 July. 
ii. Doha Development Agenda Global Trust Fund. 
7. Another member of the Secretariat presen ted documents WT/BFA /SPEC/150 and CRP(06)20 
and informed the Committee that as at 15 July 200 6, resources in hand to finance activities included 
in the 2006 TA Plan amounted to CHF 23.7 million.  The attention of the Members was drawn to the 
fact that additional contributions of CHF 0.3 milli on were needed, in addition to the payment of the 
outstanding pledges of CHF 2.9 million Swiss Fr ancs, in order to meet the target amount of 
CHF 24 million.  
8. Furthermore, it was pointed out that in order to  be able to implement technical activities for 
2007, a reserve of 25 per cent of the target amount  i.e. some 6 million Swiss Francs (based on the 
2006 target of CHF 24 million Swiss Francs for the TA Plan) were needed by the end of 
December 2006. 
9. The Secretariat urged Members to provide the necessary resources  in order to enable the 
continuation of the implementation of the Technical A ssistance Plan and to expedite the transfer of 
funds already pledged. 
10. The Committee took note of the report. 
II. WTO BUILDING OPTIONS 
11. The Secretariat distributed document WT/BFA/W/145: Addressing The Future Building 
Needs of the WTO.  A member of the Secretariat introduced the document, recalling that the 
Director-General had indicated at the previous me eting of the Committee that he had "come to the 
conclusion that the most efficient way for the WTO to function was under one roof."  (WT/BFA/87)  He outlined the present situation where the WTO o ffices were comprised of the main building, the 
Centre William Rappard (CWR), and an annexe at the rue Rothschild.  This annexe was provided by 
the Swiss authorities in view of the fact that the library of the Graduate Institute of International 
Studies (IUHEI) continued to occupy some 3,000 m
2 in the basement of the CWR pending its removal 
to a permanent site. 
12. The Secretariat also recalled the project for a ne w annexe (WTO II) at the Avenue de France, 
which has been in the planning stages since 2001,  and for which the Swiss authorities had begun 
consideration of granting the WTO an interest-free loan of CHF 60 million covering 50 years.  The selection of a general contractor for the cons truction of WTO II has been suspended pending 
clarification of the longer-term situation, and bidders have agreed to extend the validity of their offers 
to 31 December 2006. 
13. 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 situ ation to the long-term goal of a single site, two 
different scenarios were put forward: one assumed an annual growth rate of 3 per cent while the 
second was based on a growth rate of 1 per cent, which resulted in a staff population of 1,500 and 
1,065, respectively, by 2025.  These future popul ation figures translate into estimated costs of 
CHF 250 million and CHF 210 million, respectively, at today's prices.  The lead time between starting 
planning and completion would be approximately 10-12 years.  WT/BFA/88 
 Page 3 
 
 
  14. In order to assess the implications of managing the interim period between the present time 
and the completion of a single site for the WTO,  the Secretariat examined the costs associated with 
the rental of the Serono building which is located in  close proximity to the CWR, the purchase of the 
Serono building, and the construction of the anne xe at the Avenue de France. The Secretariat 
explained the concept of Net Present Value (NPV)1 which was employed in the assessment.   On the 
basis of the assumptions elaborated in paragr aph 28 of document WT/BFA/W/145, and applying the 
NPV process, the most interesting option was th e purchase of the Serono building as an interim 
solution until the completion of a single site building. 
15. Some delegations were of the opinion that the decision of the General Council with regard to 
the project for the annexe at the Avenue de France should be implemented without further delay.  This 
approach would certainly not preclude subsequent consideration of a one-site  option.  Some other 
delegations, while raising a number of questions, indicated that they  were prepared to examine the 
document and the arguments presented, with a view to taking a position at a future meeting.  It was 
mentioned that it was important to realize the impact  of a decision on the matter with regard to the 
future operational efficiency of the WTO.  Two dele gations indicated that there have been important 
developments since the original decision for the Av enue de France project was initially presented, and 
that these should be discussed in the Committe e in the context of the present exercise. 
16. One delegation raised two points which he c onsidered might be underestimated in the 
preliminary needs assessment for a single site solution: the projection for a 700-seat conference room 
and 650 parking places (in scenario 2). 
17. The delegate of the Host Country informed th e Committee that the process for approval of an 
interest-free loan was moving forward in Berne.  Th at loan, however, could not be used for another 
project.  He reiterated that Swit zerland would do its utmost to respond to the infrastructure needs of 
the Organization.  
18. The Committee agreed to return  to the question at its next formal meeting, which was 
scheduled for 28 September, and the Chairman indica ted that he would hold in formal consultations on 
the subject subsequent to the summer break.  He s uggested that delegations with specific technical 
questions could contact the Secretariat directly in the meantime. 
III. OTHER BUSINESS 
19. One Member of the Committee requested th at the Secretariat present a report on the 
implementation of the Security Enhancement Pr ogramme which was approved in December 2004.  
Another Member brought up the pending matter of  a Junior Professional Office Scheme.  The 
Chairman indicated that both items would be dea lt with at the next meeting of the Committee. 
 
__________ 
                                                      
1  Net present value  (or NPV) is a standard method in finance of capital budgeting  – the planning of long-term 
investments . Using the NPV method a potential investment project should be undertaken if the present value of 
all cash inflows minus the present value of all cash outflows  (which equals the net present value) is greater than 
zero. (from wkikpedia.org)